Esa Härmälä, asked by the Finnish government to look into biofuel production, said in a report made public on Friday that there was sufficient feedstock in the country to launch cereal-based fuel ethanol production.

Mr Härmälä, the director-general of the European Fertiliser Manufacturers' Association and former head of the Finnish farmers' lobby, said two to three grain ethanol facilities could be built in Finland, reducing the amount of exported cereal by up to a third.

Mauri Pekkarinen (centre), the economic affairs minister, said in a statement he backed Mr Härmälä's proposal.

STT