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‘Green’ Politicians Cause Another Food Crisis

The Biofuels Disaster


By Guest Column Dr. Benny Peiser——--July 20, 2012

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A United Nations expert has condemned the growing use of crops to produce biofuels as a replacement for petrol as a crime against humanity. The UN special rapporteur on the right to food, Jean Ziegler, said he feared biofuels would bring more hunger. The growth in the production of biofuels has helped to push the price of some crops to record levels. It was, he said, a crime against humanity to divert arable land to the production of crops which are then burned for fuel. --Grant Ferrett, BBC News, 27 October 2007
The world is running short of corn. That is the message being delivered by the market, where on Thursday prices pushed above $8 a bushel for the first time. With no obvious abundance of international suppliers to make up for the drought-ravaged US corn crop and stocks close to record lows, traders and analysts believe demand must be pegged back.The biggest potential for a reduction in corn demand comes from the ethanol industry, which is using roughly 5bn bushels of corn, or nearly 40 per cent of the US corn crop, each year to make fuel for cars and animal feed. -- Financial Times, 19 July 2012 [Registration Required] You would have thought that after the UN referred to biofuels as a "crime against humanity" there might have been at least a pause for thought. It seems, however, that pork barrel politics can win out over pretty much anything and the headlong rush to reduce the supply of food and to increase the supply of ethanol continues unabated. I'm sure that people who can no longer afford a loaf of bread will be much reassured by the fact that the UK government is discussing flexing their biofuels mandates. –Andrew Montford, Bishop Hill, 20 July 2012

The combination of scorching temperatures and a lack of rain has now pushed corn and soybean prices above the peaks they reached during the 2007-08 food crisis. Overnight, the corn futures price climbed above $US8 a bushel for the first time, while that of soybeans hit a record $US17.12 a bushel. Already, some analysts are warning that the world could be in for a period of intense social and political instability similar to that seen in 2007-08 when soaring food prices sparked riots in dozens of countries. They note that last year’s political instability in the Arab world was partly caused by surging grain prices. The effect of rising grain prices is most pronounced in poor countries, where people can spend up to three-quarters of their income on food. --Karen Maley, Business Spectator, 20 July 2012 The head of the world's largest food producer believes high prices are due to the growing of crops for biofuels. "The time of cheap food prices is over," says Nestle chairman Peter Brabeck-Letmathe. He is highly critical of the rise in the production of bio-diesel, saying this puts pressure on food supplies by using land and water that would otherwise be used to grow crops for human or animal consumption. He says biofuels are only affordable because of the high subsidies they receive, particularly in the US. "It is absolutely unacceptable and cannot be justified," he says. "There is one demand that I have, and that is not to use food for fuel." --James Melik, BBC News, 18 July Demand for biofuels in the US is driving this year's high food prices, a report has said. It predicts that food prices are unlikely to fall back down for another two years. The report, produced by Purdue University economists for the Farm Foundation policy organisation, said US government support for ethanol, including subsidies, had fuelled strong demand for corn over the last five years. --Suzanne Goldenberg, The Guardian, 19 July 2011 The biofuels industry is at loggerheads with House Republicans, who are eyeing its funding for elimination in the farm bill. Biomass and biofuels groups warn that the loss of $800 million in guaranteed federal support would stall progress in developing the fuel source and cause job losses in rural communities that can least afford it. House Republicans say the plans to choke off funding for biofuels and biomass projects reflect the basic fiscal reality that cuts have to come from somewhere. Proponents for biofuels and biomass have faced another unusual roadblock — a coalition of fiscal conservatives and environmentalists who have rallied to stop the funding. Michal Rosenoer, an advocate with Friends of the Earth, said biofuels such as corn-based ethanol have been linked to rising food prices, and argued there’s no guarantee that a shift to more advanced cellulosic-based sources would be better for the environment. --Zack Colman, The Hill, 11 July 2012 Governments should scrap policies to support biofuels because they are forcing up global food prices, according to a report by 10 international agencies including the World Bank and World Trade Organization. The report adds to growing opposition to biofuels targets and subsidies such as those in Europe, Canada, India and the United States. --Reuters, 10 June 2011 A major international report delivered to the G20 group of governments, emphasises that biofuels should not impinge on people’s basic right to food – a central element of the ethical framework developed by the Council in its recent report Biofuels: ethical issues. The G20 report – undertaken by a range of international organisations including the Food and Agriculture Organization of the United Nations, the World Trade Organization and the World Bank – concluded that increases in bioethanol production reduced the supply of food and caused price increases. In an attempt to address this problem, the report urges G20 governments to end national policies that subsidise or mandate biofuel production or consumption. --Nuffield Council on Bioethics, 13 June 2011

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