The British Retail Consortium (BRC) has today called for a significant increase in the number of recycling facilities capable of handling so-called bioplastics after reports emerged claiming that the eco-friendly packaging may do considerably more harm to the environment than first thought.

According to an investigation by The Guardian newspaper, bioplastics made from corn, maize, sugar cane and other plant materials are exacerbating recent global food shortages by eating into land previously used for food production and contributing to global warming by releasing methane as they break down.

Concern centres on corn-based packaging made with polylactic acid (Pla), which experts claim can only be composted in special anaerobic digesters and may contaminate the waste stream if its is recycled alongside conventional plastics.

Innocent drinks reportedly stopped using Pla last year after it decided commercial composting of the packaging was "not yet a mainstream option" in the UK, while one of Britain's largest suppliers of plastic food packaging, Anson, switched back to conventional plastic after testing Pla. However, many of the UK's largest retail and food firms are currently using the plastic, including Wal-Mart, McDonald's, Del Monte and Marks & Spencer.

A spokesman for the BRC said that rather than rejecting plant-based packaging as a potential alternative to conventional plastics, retailers and the recycling sector should instead look to bolster recycling capacity. "Understanding of bioplastics is progressing all the time," he said. "The lack of processing facilities in this country shouldn't be a reason in itself for not using them. The key is improving recycling facilities."

He added that the BRC is currently working on a "universal recyclability logo " for different types of packaging designed to tell customers how likely it is that it can be recycled. "This will encourage customers to recycle more of the material that can already be recycled and push development of new facilities," he said.

Steve Eminton, editor of LetsRecycle.com, agreed that there was a need for more facilities dedicated to recycling bioplastics and ensuring they are properly broken down, but warned that the development of such capacity will take time. "It is a chicken and egg scenario," he explained. "Currently, these bioplastics aren't that widely used so there isn't the demand for the recycling facilities – it is also a complicated chemical process to recycle these plastics."

He advised that companies using or considering using bioplastics should consult chemical and technical experts first and think carefully about what will happen to the plastic when it is disposed of.

Jane Bickerstaff, director of pakacging industry group Incpen, said that companies should continue to investigate bioplastic alternatives, adding that the net benefits outweighed any environmental concerns. "Bioplastics are a really interesting product that comes from a sustainable plant source and ideally even a waste source in the form of the left overs from sugar cane," she said. "It needs to continue to be an option for retailers."

She admitted that there were issues with recycling bioplastics currently, but insisted that these would be addressed as more firms begin to use the packaging and argued that in the long term they could even become a valuable source of energy for biomass-power plants. "These bioplastics are really good for waste-to-energy plants as they have a high calorific value," she explained.

Eminton also downplayed fears that bioplastics could find themselves in a similar situation to biofuels – facing accusations that they are driving up food prices and contributing to deforestation – noting that the sector remained too small to make a big impact.

However, with around 200,000 tonnes of bioplastics produced last year, requiring up to 350,000 tonnes of crops, and demand growing at 20 to 30 per cent a year the issue of plant-based plastics is likely to become increasingly politicised should global food shortages continue.