The Finnish Forest Industries Federation (FFIF) recently urged caution over the European Commission’s plan to increase production of bioenergy and called for “sensible” use of biomass, while this week Guyana said rising interest in biofuels could hasten deforestation.

The National Association of British and Irish Millers said it was worried that government subsidies in the UK to promote biofuel will intensify competition for resources.

A spokesman said: “It’s crucial that we don’t create a monster which becomes dependent purely on subsidy. It would be very easy to go too far, too fast and create an enormous imbalance in supply and demand.”

In its submission to the Commission, the FFIF also called for balance. It said: “There is only a limited supply of biomass, such as wood, so its use must be focused on products with a high-added value. Wood that is suitable for processing, on the other hand, can be used to meet energy needs.”

Growing timber exports and rising in-terest in biofuels are raising concerns in the South American country of Guyana, where logging has accelerated in the past 10 years, and the UN has warned about exports to China.