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Abstract
The use of agricultural raw materials for non-food purposes has been known since the beginning of history, but the combination of certain technical, economic and environmental factors may lead to a significant increases in non-food use in the near future. This paper examines the interaction of these factors and the impact of biotechnology in particular which enables the substitution of hydrocarbons. The main obstacle to expansion is the higher cost of products made from agricultural sources. However the private cost of oil may not reflect its social cost and conversely the cost of agriculturallyderived products may not reflect their social benefits. The paper makes a distinction between chemical uses for which legislation is already in place and energy uses for which it is not. The paper assesses whether the recent proposals of the European Commission to allow land set-aside to be used for nonfood purposes will be a sufficient incentive for expansion