Biofuels have forced global food prices up by 75%
Biofuels have forced global food prices up by 75% - far more than previously estimated - according to a confidential World Bank report obtained by the Guardian. .... "Rapid income growth in developing countries has not led to large increases in global grain consumption and was not a major factor responsible for the large price increases." Even successive droughts in Australia, calculates the report, have had a marginal impact. Instead, it argues that the EU and US drive for biofuels has had by far the biggest impact on food supply and prices. == The basket of food prices examined in the study rose by 140% between 2002 and this February. The report estimates that higher energy and fertiliser prices accounted for an increase of only 15%, while biofuels have been responsible for a 75% jump over that period. ---- It argues that production of biofuels has distorted food markets in three main ways. First, it has diverted grain away from food for fuel, with over a third of US corn now used to produce ethanol and about half of vegetable oils in the EU going towards the production of biodiesel. Second, farmers have been encouraged to set land aside for biofuel production. Third, it has sparked financial speculation in grains, driving prices up higher.
Aditya Chakrabortty, Biofuels are prime cause of food crisis, says leaked report, The Guardian - July 3, 2008 http://www.guardian.co.uk/environment/2008/jul/03/biofuels.renewableenergy