The Irish Cattle and Sheep Farmers' Association (ICSA) has called on the European Commission to prioritise bioethanol imports over "unnecessary beef imports" from Brazil.
The comments come as global fuel prices soar due to the ongoing conflict in the Middle East.
Oil prices have broken the $100/barrel threshold as tensions intensify and expand across the region.
European finance ministers, known as the Eurogroup, are due to meet today (Monday, March 9) to discuss the situation.
Shipping through the Strait of Hormuz, which is located between Iran and Oman, has come to a standstill after it was closed by Iran.
The shipping route normally handles around one-fifth of the world's oil trade.
ICSA Rural Development chair Edmond Phelan said the surge in fuel prices highlights the need for Europe to focus on bioethanol imports.
"Events in the Middle East have upended energy markets in a matter of days, and we are seeing fuel prices skyrocketing.
"Ireland already uses some bioethanol in our petrol (E10), and it’s clear we should be looking to increase both the supply and use of bioethanol in our transport fuels, to meet renewable energy targets and reduce dependence on volatile global oil markets,” he said.
"If the European Commission is determined to expand trade with Brazil, it should focus on sectors that do not harm vulnerable farm enterprises.
"Bioethanol is a product we cannot produce at scale ourselves and one that directly supports Europe’s energy needs. That is the kind of trade flow that makes sense.
"What does not make sense is sacrificing rural livelihoods and the backbone of our rural economies to import beef we do not need," Phelan added.
The ICSA Rural Development chair believes it is "reckless" for the European Commission to provisionally apply the EU-Mercosur trade deal before it has been properly scrutinised by the European Court of Justice and debated and voted on by the European Parliament.
"This deal should not move another inch until that scrutiny and parliamentary debate are complete.
"At a time when fuel costs are soaring, it makes far more sense for Europe to focus on importing products we actually need, such as bioethanol, rather than flooding already vulnerable beef markets with imports we do not need.
"At this time, it is vital to prioritise our own food production and food security, while also improving Europe’s energy security," he said.