Pitting Fuel Against Food

• Crops are being diverted for biofuels. Powerhouse countries use food crops like cassava, corn, sugar, and palm oil to produce biofuel, a new source of energy.
• Biofuel demand is increasing. US Congressmen mandated biofuel production to reach 36 billion gallons annually by 2022 while the EU ordered that biofuel must compose 10% of transportation fuel by 2020. China, India, Indonesia, and Thailand also have adopted targets.
• Biofuel production competes with food. When more land is devoted to planting biofuel crops, less is devoted to growing food. Food stocks decrease because farmland is limited.
• Ambitious biofuel targets increase food prices. Devoting a significant fraction of crops to biofuel production when harvests are limited contributes to high prices.

o   High food prices cause a ripple effect. Both domestic and foreign prices are affected by increasing prices. For example, a rise in corn price in Rwanda may mean a rise in cereal prices in other countries.

o   High food prices cause hunger. Insufficient and expensive food throws more people into poverty. Also, with higher prices, groups like the World Food Program can buy less food to feed the poor.

o   High food prices cause political instability. As people gets poorer and hungrier, more riots and political turmoil erupt.

•  Biofuel regulation must be regulated. Bioenergy and food experts suggest that the policy must be “food first”. Fuel mandates must be suspended when food stocks get low or prices become too high.

Source:

Rosenthal, Elisabeth, “Pitting Fuel Against Food.” New York Times, 10 April 2011, pp. 1-3.