Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

U.S. bread, donut makers urge Biden to roll back biofuel requirements

Stock MarketsAug 03, 2021 07:16AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: Corn is harvested at the Kenison Farms in Levan, Utah, October 5, 2013. REUTERS/Jim Urquhart

By Jarrett Renshaw, Chris Prentice and Stephanie Kelly

WASHINGTON (Reuters) - A trade group representing some of America's biggest baked goods companies is urging the Biden administration to ratchet back its biofuel ambitions, arguing that using fuel made from crops could raise the cost of donuts, bread and other foods.

The complaints mark an unusual entrance by the food industry into the U.S. energy policy debate, and puts it in an unwitting alliance with Big Oil, which has for years opposed regulations requiring that fuels made from corn, soybeans and other crops be added to the nation's gasoline and diesel.

The American Bakers Association, which represents companies like the grocer Kroger (NYSE:KR), donut maker Krispy Kreme and Tastykake parent company Flower Foods, told Reuters it met with the Environmental Protection Agency (EPA) last week to urge reduced blending mandates, particularly for biodiesel.

The EPA administers the nation's biofuels laws.

The group has also met with lawmakers involved in the issue to press its case, according to its president Robb MacKie.

MacKie said the group held the meetings because its members are hearing from suppliers of soy and canola oil - staple ingredients in many foods - that they could run short of stocks by the end of the year as demand from the biofuels industry compounds already tight global markets.

"We are trying to ring the alarm without being alarmists," MacKie said.

Baked goods companies want the Biden administration to lower biodiesel blending mandates to 2019 levels or at least "hold the line" on any growth, he said.

It was unclear whether their demands would have any impact on EPA's decision-making.

The EPA is currently considering new biofuel volumes requirements for the coming year under the nation's biofuel law, the Renewable Fuel Standard (RFS), a process that has been delayed by the economic fallout from the coronavirus pandemic and by treacherous political considerations.

Nick Conger, an EPA spokesman, confirmed the agency met with the baker's trade group, but did not offer details.

"EPA always appreciates input from stakeholders, and we are taking their concerns into account along with those of the many other RFS stakeholders," Conger said.

Around 40% of soy oil consumed in the United States goes to producing fuel, with most of the rest going into food, according to U.S. government data.


The RFS, adopted in 2005 to help farmers and reduce fuel dependence, has created a nearly 20 billion gallon per year market for the U.S. Farm Belt. But oil refiners say it has also created a costly regulatory burden that threatens to bankrupt smaller refining facilities.

Until now, the fight over the policy has been restricted mainly to those two constituencies.

Kurt Kovarik, Vice President of Federal Affairs for the National Biodiesel Board, said now is not the time to slow the progress of biodiesel, which he said is among the cleanest, low-carbon fuels available.

"America's agricultural sector is still emerging from years of disruptions due to trade wars and weather events. The COVID emergency continues to impact markets, including agriculture. Undercutting the Renewable Fuel Standard is not a solution," Kovarik said.

The average price of food in the United States climbed 2.4% in the 12 months ended June, rising from the previous 2.2% increase, according to the U.S. Labor Department's Bureau of Labor Statistics.

Domestic production of biodiesel is around 130,000 barrels per day, according to the U.S. Energy Information Administration.

U.S. bread, donut makers urge Biden to roll back biofuel requirements

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email