Last update : 28.10.2010
Biofuels factsheet: Biofuels & food
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Recent price increases in corn and wheat have cascaded in the food chain resulting in a price increase in foods (pasta, bread, milk, meat), which was swiftly attributed to increased biofuels production. While it is true that the price of agricultural raw materials has risen, the alleged impact of biofuels on food price is disproportionate and a number of factors, including bad harvests in Australia and Ukraine in 2007 and an increased demand for meat in developing countries are responsible. The present report addresses the following key issues: Are biofuels causing food prices to rise? Does the higher price of raw materials increase food prices in developed countries? How do the higher prices of raw materials affect food price and availability in developing countries? How does the increased biofuels production following on from the EU and US biofuel targets impact agricultural raw materials for industry? Is biofuel production bad for the livestock industry? How can we meet today’s demands of fuel and food?
Added on 23 February 2009
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