Food vs. Fuel
RFA | “Flat out wrong” or “gross misunderstanding” or “shockingly misinformed”
The debate over the role biofuels plays in the world food crisis continues to rage, with many falling victim to Chicken Little syndrome, issuing dire predictions unsupported by fact. Government, policy and business leaders from around the globe are aggressively challenging those who seek to use biofuels as the scapegoat for rising world food prices. Among other factors, these leaders point to skyrocketing oil and energy prices, surging global demand for grain and other food, and the effect of droughts on production.
RFA | Increasing Food Prices: It’s all about oil, speculation, drought and worldwide demand
At a press conference today, leaders from farm and ethanol groups pointed to skyrocketing oil prices, hedge fund commodity speculators, growing worldwide demand for grain and severe droughts as the major factors underlying rising food prices. They also pointed to the expansion of biofuels as preventing even higher oil prices. The groups cited Merrill Lynch analyst Francisco Blanch’s estimate that oil and gasoline prices would be about 15% higher, or $4.14 a gallon at today’s prices, if biofuel producers weren’t increasing their output.
EPIC | Biofuels Not to Blame for World Food Crisis
(Omaha, Neb.) The United States is the world’s largest donor of food aid. Hunger is indeed a world-wide calamity, and it is distressing to think that rising food prices have impacted the budgets of humanitarian organizations around the globe. While Americans are feeling the pinch in the checkout lane, developing nations are seeing years of progress in the battle against poverty and hunger fall by the wayside.
This is not an issue to be taken lightly, as evident by the Bush administration’s release of an additional $200 million in food aid. Americans have never turned a blind eye to humanitarian crises around the world, whether it involves friend or foe. And we will continue to respond, for the factors behind rising food prices and shortages can never be completely eradicated
EPIC | Changing Renewable Fuels Standard Not the Fix to Food Prices
(Omaha, Neb.) – Recent calls to reduce the renewable fuels standard (RFS) seem like an easy and immediate fix to world food shortages. However, the factors influencing global food prices and supplies are a result of converging global production and demand issues that go far beyond corn-based ethanol. Changing U.S. energy policy will not provide short-term relief on the food supply and decrease food prices as many expect. In fact, relaxing the renewable fuels standard mandate actually may escalate food prices now and in the future by driving fuel prices even higher.