The Hindu : New Delhi News : Biofuel demand will push up food prices: U.N.

Online edition of India's National Newspaper
Saturday, Jul 07, 2007
ePaper

New Delhi

New Delhi

Biofuel demand will push up food prices: U.N.

John Vidal

Food prices will rise in the next 10 years as twice as much sugarcane, maize and oilseed rape is grown to fuel cars and people in rapidly developing countries adopt meat-based diets, says the U.N. in its annual assessment of farming trends.

The move to “agrofuels”, which are expected to marginally lower climate change emissions and reduce the U.S. and the European oil dependence, is being led by the U.S., Brazil, Europe and China. Last year, more than a third of the total U.S. maize crop went to ethanol for fuel, a 48 per cent increase on 2005. Brazil and China grew the crops on nearly 20 million hectares. This area could double in 10 years, says the U.N. report on trends up to 2016.

But the switch to growing fuel crops will take land out of food production and increase the price of commodities such as sugar, maize and palm oils, says the report, which was jointly prepared by the World Food Organisation and the OECD.

While higher food prices are profitable for the mainly large-scale farmers who grow them, they threaten the economies of food-importing countries as well as the urban poor, says the report.

The higher food prices will also mean extra costs for livestock farmers who must buy feed.

But the report does not consider the effect on food supplies of floods, droughts and other extreme weather linked to climate change.

The price of wheat and some other food is edging record levels after devastating weather in Australia, the running down of grain reserves in the US and drought in Africa. Food price inflation stands at more than 6 per cent a year in some developing countries, says the report.

Continuing growth will increase the amount of meat reared. Nearly 30 per cent more beef, 50 per cent more pig meat and 25 per cent more poultry are expected to be consumed in developing countries by 2016, with 70 per cent more skimmed milk powder and sugar.

Yesterday a A report from 11 non-governmental groups has said the rush to energy crops was encouraging intensive, industrial agriculture at the expense of sustainable food production.

More than 100 groups want a moratorium on E.U. subsidies for agrofuels. —

Guardian Newspapers Limited 2007

Printer friendly page
Send this article to Friends by E-Mail

New Delhi