Fill it up with sugar to decrease prices

01 Jun 08

Biofuels are regularly cited as a major cause of the current food crisis, with phrases such as “biodiesel is exacerbating world hunger” and “bioethanol is to blame for the rise in food prices” becoming clichéd. These assertions not only overstate the impact of biofuels but they also mask an important truth: that bioenergy can be a great opportunity for poor countries. This fact is demonstrated by Brazil, whose example could be followed by other countries located in the tropics. As for food inflation, leading analysts and authoritative institutions such as the UN Food and Agriculture Organization (FAO) agree that agricultural commodity prices are being driven up by limited supply and surging demand in emerging countries such as China and India. Other factors include the weakness of the dollar, the currency in which most of these products are denominated, and higher production costs linked to gains in the prices of traditional energy sources. At the same time, supply is constrained by extreme climatic events that have seriously impacted agricultural production.Only after assessing these major causes can we cite the unsustainable production of some kinds of biofuels as having a negative effect on food prices and environmental security. Let me repeat: some kinds of biofuels. Because not all biofuels are the same.
To read full article in italian click here

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