Bioeconomy, and its importance to the Agri-Food Sector
The bioeconomy can be complicated, but at its most basic understanding it is taking what we already use, and using it better. This management of renewable biological resources and their conversion into food, livestock feed, bio-based products and bioenergy via innovative and efficient technologies will be essential in feeding the worlds growing population whilst helping to preserve our precious environment.
Food systems occupy the biggest niche of the bioeconomy. In the European Union, for instance, food systems, including agriculture, forestry, fisheries and aquaculture, as well as food and feed manufacturing account for 71% of all value added in a bioeconomy, followed by around 28% for bio-products, and the remainder for bioenergy.
Agriculture in particular has the opportunity to add significant value to their raw materials with the potential to compensate for emissions through carbon sequestration and storage, something the team at Birnie Consultancy are helping to investigate through the ARCZero project. Processing agricultural products into renewable materials and energy also offers an opportunity to increase the value generation potential of food systems, enhancing their economic development and improving food security and nutrition.
There are many benefits of the bioeconomy, making it vital that Agri-Food companies get to grips with it quickly so as not to be left behind. Harnessing the bioeconomy is great for the environment, but companies will also find a benefit to their bottom line:
The Global biorefineries market is set to grow from around £350bn to £550bn by 2021.
The annual turnover of the UK industrial biotechnology and bioenergy sectors was £2.9bn in 2013/14 and was forecast to increase to £8.6bn by 2035.
The global market for bioplastics is expected to grow from £13bn in 2017 to over £33bn by 2022
The global market for agricultural biotechnology is set to grow from £22bn in 2016 to £40bn by 2022
Production of sustainable aviation fuels in UK could be worth £265m GVA in 2030, with 4,400 jobs
A recent Zero Waste Scotland report showed an estimated £500-800m could be generated for Scotland’s economy by using food and drink by-products alone, that may otherwise go to waste.
This bioeconomy windfall will be seen in more rural areas with the development of biomass production attracting new business, creating new jobs and diversifying rural income.
When it comes to bioeconomy, there are always developments. This article is just a short introduction to a very complex issue, and something which the consultants here at Birnie Consultancy will continue to learn about, which is why this is just part one in the series.