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The aim of this paper is to show the consequences of a model extension towards the presentation of by-product in the production of biofuels. By-products can be used as a substitute for feed grain use in livestock production. A boost in biofuel production will also show a strong increase in the availability of by-products. To identify the impact of modelling biofuel production with and without presentation of by-products two different model versions have been applied. The simulation results of both model versions show that the EU mandatory blending mandate has a pronounced impact on the markets for grains, oilseeds and sugar but a rather limited impact on production level of aggregated primary agricultural output. The analysis shows that apart from direct effects of an enhanced demand for bioenergy on production and land use, the indirect effects of the EU Biofuel Directive (BFD) dominates. Additional production of biofuel crops within and outside the EU leads to strong indirect land use changes which are partly compensated for a higher availability of feed byproducts of biofuel production
