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2 Changes in the Environment that made the Bazancourt-Pomacle Biorefinery 43

Fig. 2.11 Comparison of wheat and sugar price trends [De Cherisey, Hugues (2010). Panorama et
potentiel de de ´veloppement des bioraffineries. ADEME Study. 221 p.]

three reference years. These subsidies are paid on condition that the farmer
respects the environment and animal wellbeing.
– In 2009: End of mandatory set-aside and total delinking of subsidies apart from
exceptional cases.
– In 2013: Budget reduction.
This decline in protection, under the pressure of the WTO, led to extremely
volatile prices for agricultural products (c.f. Fig. 2.11).

2.1.3 The Volatility of Agricultural Produce Prices
Significant variations in the price of agricultural raw materials have a direct impact
on the activity of agricultural cooperatives.
A high level of instability makes prices much more difficult for producers to
anticipate. Speculation, in particular, makes pricing more complex and increases
the risk to producers’ margins.
In such a situation, it is important for farmers and the cooperatives to which they
belong to sell their produce on the most profitable markets.
Given the humanitarian stakes (Cf. Fig. 2.12), it is important for nations and
international organisations to support the efforts of the agricultural sector to favour
food independence and avoid, where possible, periods of under-production. The
issue of agricultural produce storage is also important to offset poor harvests.
However, support for the agricultural sector must respect the principle of free
competition within the sector, in an increasingly global agro-food industry.