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Re: Fears of new food crisis as prices soar
Although arguably this crisis did not originate in biofuels I think its important to quantify the effect the biofuel industry has on surpluses and demand for grain. These price pressures exist even before low crop harvest events stress the food system and are also something new that needs to be considered.
One quarter of US grain crops fed to cars - not people, new figures show
One-quarter of all the maize and other grain crops grown in the US now ends up as biofuel in cars rather than being used to feed people, according to new analysis which suggests that the biofuel revolution launched by former President George Bush in 2007 is impacting on world food supplies.
This Washington post article glosses over many of the events of 2010 that led to shortages in supply - But it adequately frames the role of Biofuels in the final outcomes I believe.
How biofuels contribute to the food crisis
Today, the market is out of equilibrium. Biofuels have grown rapidly, from consuming 2 percent of world grain and virtually no vegetable oil in 2004 to more than 6.5 percent of grain and 8 percent of vegetable oil last year. Governments worldwide seek to triple production of biofuels by 2020, and that implies more moderately high prices after good growing years and soaring prices after bad ones.
Although arguably this crisis did not originate in biofuels I think its important to quantify the effect the biofuel industry has on surpluses and demand for grain. These price pressures exist even before low crop harvest events stress the food system and are also something new that needs to be considered.
One quarter of US grain crops fed to cars - not people, new figures show
One-quarter of all the maize and other grain crops grown in the US now ends up as biofuel in cars rather than being used to feed people, according to new analysis which suggests that the biofuel revolution launched by former President George Bush in 2007 is impacting on world food supplies.
This Washington post article glosses over many of the events of 2010 that led to shortages in supply - But it adequately frames the role of Biofuels in the final outcomes I believe.
How biofuels contribute to the food crisis
Today, the market is out of equilibrium. Biofuels have grown rapidly, from consuming 2 percent of world grain and virtually no vegetable oil in 2004 to more than 6.5 percent of grain and 8 percent of vegetable oil last year. Governments worldwide seek to triple production of biofuels by 2020, and that implies more moderately high prices after good growing years and soaring prices after bad ones.
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