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Production

Imports

Exports

Total Use

2001

52,000

29,300

5,600

50,000

2002

52,000

68,600

2,400

58,000

2003

52,000

127,800

2,600

135,000

2004

52,000

184,600

5,600

205,000

2005

52,000

291,000

36,900

306,100

*Large amounts of ethanol have been imported under HS code 342490 to Sweden (loophole in Swedish tax regulations).

GAIN Report - SW6013

Production and Distribution of Ethanol (Metric Tons, MT)

Page 8 of 8

E. Bio-Fuel’s Impact on Traditional Uses

The share of bio-fuels produced from agricultural products in Sweden is still rather small. About 2% of Sweden’s agricultural land is used for energy production (see below).

Table 1. Cultivation of Agricultural Raw Material for Bio-fuel Production

Raw Material

Area, in hectares

Grains, ethanol

25,000

Grains, heating

5- 10,000

Straw, heating

(30,000)*

Rapeseed, RME

2,000

Salix, heating

14,000

Reed Canary Grass, heating

600

Grassland

300

*Bi-product from grains.

Since Sweden is more than self-sufficient in wheat, the planned 120,000 MT increase in ethanol production would only affect Swedish exports of wheat. In 2004/05, Swedish production of wheat amounted to about 2.4 million MT, of which 425,000 MT was exported. Swedish exports of wheat depend heavily on the volume of production and can vary by more than 200,000 MT from year to year. It takes about 275,000 MT of wheat to produce 120,000 MT of ethanol (two thirds wheat). Hence, the planned expansion in ethanol production would reduce Swedish wheat exports by about 275,000 MT per year.

Sweden’s rapeseed harvested area in 2005 totaled about 80,000 hectares. Should Karlshamns meet their increased production of 40,000 MT of RME with domestic rapeseed, the area harvested would need to increase by 30,000 hectares. Swedish rapeseed growers see this as a great opportunity. However, the increased demand for rapeseed oil from the planned RME production at Lanmannen and Perstorp’s plants is expected to be met through imports.

UNCLASSIFIED

USDA Foreign Agricultural Service

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