World Grain - June 2006 - 18

countryfocus

Focus on Germany
Growing demand for biodiesel sparks the
need for increased rapeseed production
by David McKee

The diesel engine was invented in Germany about 120 years
ago, with the first ones running on rapeseed (canola) oil. But
the diesel engine's success was assured only with the exploitation of petroleum diesel at the end of the 19th century.
Now Germany has become a world pioneer and leader in
production and use of biodiesel. Production in 2005 was about
1 million tonnes, consuming about half of the country's total
rapeseed oil production.
Capacity is being added rapidly. High world oil prices and a
zero tax on biodiesel (versus €.50 per liter for mineral diesel)
are fueling the expansion.
The oilseed crushing industry, which is dominated by six
large plants owned by Archer Daniels Midland (ADM), Cargill
and Bunge, has invested significantly to convert capacity from
soybean (imported) to rapeseed (mostly domestic) crushing.
Once all current projects are completed in 2006, Germany
will be able to produce about 3 million tonnes of biodiesel per
year compared to total diesel usage of 25 million tonnes.
In addition to the major multinationals,
there is a second tier of players in the German biodiesel industry, about 30 companies
all told. These are smaller private firms which
have sprung up mostly to refine biodiesel fuel
using crude vegetable oil purchased from the
major multinational companies mentioned
above. Several have their own extraction or
extrusion capacity as well.
A critical part of the equation for this
new industry is the rapeseed supply. The
rapeseed crop rotation in Germany, which
is every three or four years, is already approaching the maximum level. In 2006,

DENMARK

NETHERLANDS

GERMANY

POLAND

BELGIUM

LUX.

CZECH
REPUBLIC

FRANCE

AU S T R I A

SWITZERLAND

Five-Year Crop Production Trends (in tonnes)

Wheat
Barley
Rapeseed

2001
22,837,836
13,494,887
4,160,099

Source: Foreign Agricultural Service

2002
20,817,740
10,927,970
3,848,696

2003
19,259,812
10,595,573
3,638,000

2004
25,427,000
12,993,000
5,276,600

2005
23,578,000
11,722,500
4,658,700

Key Facts
Capital: Berlin
Demography: Population 82.4 million (2005); growth
rate -0.02% (2005); German main language; Protestant
(34%) Catholic (34%) , Muslim (3.7%), unaffiliated or other
(28.3%).
Geography: Central Europe, bordering the Baltic Sea and
the North Sea, between the Netherlands and Poland, south
of Denmark.
Government: Federal republic; chief of state is President
Horst Koehler, head of government is Angela Merkel
Official agricultural agencies: Ministry of Consumer
Protection, Food and Agriculture under Federal Minister
Horst Seehofer
Economy: Germany's affluent and technologically powerful
economy - the fifth largest in the world - has become
one of the slowest growing economies in Europe. A quick
turnaround does not appear to be in the offing. Growth in
2001-03 fell short of 1%, rising to 1.7% in 2004 before
falling back to 0.9% in 2005. The modernization and integration of the eastern German economy continues to be a
costly long-term process, with annual transfers from west to
east amounting to roughly U.S.$70 billion. Agriculture accounts for 1.1% of GDP and 2.8% of the labor force.
GDP per capita: US$29,800 (purchasing power parity);
2% inflation; 11.6% unemployment (2005).
Currency: Euro. May 30, 2006 exchange rate, €1 =
U.S.$1.29
Exports: U.S.$1.016 trillion (2005), machinery, vehicles,
chemicals, metals and manufactures, foodstuffs, textiles
Imports: U.S.$801 billion (2005), machinery, vehicles,
chemicals, foodstuffs, textiles, metals
Major crops / agricultural products: Potatoes, wheat,
barley, sugar beets, fruit, cabbages, cattle, pigs, poultry
Wheat: About 24 million tonnes of wheat was produced
in Germany in 2005. Much of it is exported to other E.U.
countries, while the remainder is used by the feed industry
and for industrial uses.
Barley: Germany produced about 12 million tonnes of barley in 2005, with much of it going to intervention stocks
from where it is rerouted for exports mainly to countries in
the Middle East. The portion of the barley crop that does not
exceed the maximum protein level for brewing is used in the
dozen or so malting plants in Germany.
Transportation: Highways: 231,581 km paved: 231,581
km (including 12,037 km of expressways) (2003); railroads:
total: 46,166 km (20,100 km electrified), 45,928 km 1.435m gauge (20,084 km electrified), 214 km 1.000-m gauge
(16 km electrified); 24 km 0.750-m gauge; Bremen, Bremerhaven, Brunsbuttel, Duisburg, Frankfurt, Hamburg, Karlsruhe, Mainz, Rostock, Wilhemshaven are the major ports
and terminals.
Internet: Country code, *.de; service providers 7,657,162
(2005); 48,722,055 (2005).
June 2006 / World Grain / www.World-Grain.com

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World Grain - June 2006

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