Biofuels force world food prices up 75% says World Bank report
- added July 3, 2008
- 3 responses
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- cogito_ergo_sum
- added this
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The Guardian has obtained a confidential World Bank report which says that biofuel production has pushed food prices up 75% globally.
This contradicts the claims of the US government, who say that food prices are only inflated by 3% by biofuel production. Rising food prices have pushed 100m people worldwide below the poverty line, estimates the World Bank, and have sparked riots from Bangladesh to Egypt. Government ministers here have described higher food and fuel prices as "the first real economic crisis of globalisation".
The report 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.
This report supports the claims of many development agencies, such as Oxfam, who have been arguing for months that increased biofuel production was having an unacceptably devastating impact on food prices.
This contradicts the claims of the US government, who say that food prices are only inflated by 3% by biofuel production. Rising food prices have pushed 100m people worldwide below the poverty line, estimates the World Bank, and have sparked riots from Bangladesh to Egypt. Government ministers here have described higher food and fuel prices as "the first real economic crisis of globalisation".
The report 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.
This report supports the claims of many development agencies, such as Oxfam, who have been arguing for months that increased biofuel production was having an unacceptably devastating impact on food prices.
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- cogito_ergo_sum
- 3 months ago
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The leaders of Bolivia and Peru have attacked the use of biofuels, saying they have made food too expensive for the poor.-
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- celestialceiling
- 3 months ago
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hahaha you guys dont see whats happening they will use this as an excuse to allow mass gm foods you will see many many new gm products gm rice gm carrots blah blah and it will be a ploy all part of a slow but sure master plan to finally end in human cloneing ;) they will say its for makeing humans need less food or some shit
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How many people will starve because we are growing fuel instead of food.
This is such a shame.
We just don't seem to think things through.
Isn't this just the basic laws of opportunity cost?
we grow less food to grow more fuel.
Then you have the simple law of supply and demand.
Lowered food supply increases its price.
Its insane!
Are there not some really clever people that are paid tons of cash to figure out, forecast, and project what the consequences of our actions will be?
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