A bioenergy and food security analysis in Tanzania has indicated that price of the feed stock would play a crucial role in ensuring that biofuels produced in Tanzania are economical. The analysis shows that over 25-50 per cent reduction in the prices of feedstock would allow ethanol produced in Tanzania to become more competitive in international markets. The BEFS framework is comprised of five core analytical components: Biomass potential, biofuel supply chain production costs, the agriculture markets outlook, economy wide impacts and household level food security. The analysis was carried out in close consultation with the government. The overall aim of the analysis is to support the formulation of bioenergy policies that are aligned with Tanzania's poverty reduction and food security strategies and start a continuous process that can inform policy over time. BEFS project Co-ordinator, Mr Heiner Thofern said that in the case of sugar cane, a 70 per cent reduction in the purchase price of sugar cane feed stock will bring the ethanol production costs closer to that of Brazil.
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