FAO report links high food prices to biofuel demand

07 Dec 12

Biofuels account for the largest source of new demand for agricultural production and have helped drive price volatility in grain crops like wheat and maize, the UN Food and Agricultural Organization says in a new report. Biodiesel accounted for 80% of the EU’s vegetable oil production while 37% of the grain crop in the United States went towards ethanol production, the FAO’s ‘State of Food and Agriculture 2012’ report shows. The report, released Thursday (6 December), calls for ramping up agricultural investment in developing nations to provide jobs and reduce poverty. It points out that average farm production has declined since the 1960s and that threats to land and water could further erase gains.
http://www.euractiv.com/cap/fao-report-links-high-food-price-news-516502

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