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 Don’t blame biofuels for food shortage 

Don’t blame biofuels for food shortage

21 May, 2008 03:49 PM
The use of crops to generate biofuels has been blamed for the increasing shortage of food across the world.

But WA Agriculture Minister Kim Chance disagrees and has called for a deeper understanding and analysis of all the factors in the food-versus-biofuel debate.

A large portion of negative media attention is fixed on the biofuels industry which uses basic food commodities - maize, sugar cane or vegetable oil - to make the fuel.

As a result, public sympathy is shifting away from the practice in the face of starving populations.

Mr Chance said this week, it is wrong to hold biofuels responsible for recent global food shortages when other factors are also impacting on the heavily strained supply and demand equation in the world’s food chain.

Anyone who makes biofuels solely responsible for causing recent riots in food-strapped countries is merely using crude economic arguments to reach that conclusion.

"It is just nonsense to say that food is being taken out of the mouths of poor people and turned into fuel," Mr Chance said.

"It does not stand up to any deeper analysis.

"All the arguments I have heard so far have used really crude analysis.

"They have said taking food out of the cycle and putting it into cars is the cause for the high prices we have now.

"But when you go beyond that crude economic analysis and say ‘how come rice has seen the fastest rise of all the grains?’, it actually makes nonsense of the assertion."

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Great comment. Rice is the standout but also interesting is wheat, little of which goes into biofuel. Obviously there is some competition for acres amongst wheat and corn and soybeans etc. However, we would have crude oil at over $200 a barrel if we did not have the USA, Brazil and Europe supporting biofuels. This would then further impact food costs through higher costs for fuel and fertilizer for crop production and the impact on transport and packaging costs.
Posted by the advocate, 21/05/2008 7:59:58 PM
Blame biofuels AND blame meat eaters. To quote from The Land : "A change in Chinese meat consumption habits since 1995 is diverting eight billion bushels of grain per year to livestock feed and could empty global grain stocks by September 2010, according to a new study from Biofuels Digest. The study, "Meat vs Fuel: Grain use in the US and China, 1995-2008", concluded that a complete shutdown of the US ethanol industry would extend the deadline only until 2013." So if you care about world hunger, eat less meat.
Posted by Linda, 21/05/2008 8:42:16 PM
Why was it not explained what " beyond crude analysis" would have revealed.?
Posted by alice Ekin, 22/05/2008 7:02:02 AM
Advocate, Ethanol amounts to about 1 per cent of transport fuel use around the world. You are saying that this has saved oil prices from rising $75 to $200. On the other hand, grain ethanol uses about 7.5 percent of the world grain production and you are agreeing that this has no influence on grain prices. You must be consistant. We all must try and seperate the spin from the facts on this issue.
Posted by two bob, 22/05/2008 10:06:17 AM
Mr Chance, 'crude analysis' I would say that you have this the wrong way around. The 'crude analysis' is more likely to be found in articles like this press release.
Posted by two bob, 22/05/2008 10:12:21 AM
here here It is just bloody plain greed that is driving grain prices higher than ever and producing shortages as the farmer goes broke the major companies get richer supermarkets blame the drought and bio feuls I balme their greed no real compition in the market the farmers get less for their products at the gate and every other handler earns more
Posted by cowdy99, 22/05/2008 10:17:06 AM
Ohh I see. Tell us the problem and then pretent to know the broader issueswithour sighting them. If you are so smart Mr. Chance, enlighten us with your full summation of what factors are causing these shortages.
Posted by MSS, 22/05/2008 2:53:59 PM
Forget crude analysis, just even a basic analysis will enable every layman to understand the reasons for food price increase.

Price is result of demand and supply.

Has demand for grains, seeds, cereals gone up?

Has supply kept pace?

Have farmers been getting a good price/reward for their efforts? (If they have, surely more will get into farming. Farming has been for centuries least attractive, those in want to get out, those out would rather be unemployed than get into farming).

With so much concern over food shortage, why are European and US farmers paid not to grow?

Why are they still continuing with massive subsidies that has directly or indirectly caused farming in African and 3rd world countries to plummet?

Why subsidise at all if farming was profitable.

Does anyone know or care for the impact of fuel on Agri production?

If you want convenient scapegoat, blame biofuels.

If you have the brains and energy to think for yourself, you might be able work out the answers yourself rather than let spin doctors do it for you.

Posted by face facts, 23/05/2008 10:28:33 PM

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Corn, sorghum, canola all have played a major role in the surging biofuels industry, at a time of high crude oil prices.
Corn, sorghum, canola all have played a major role in the surging biofuels industry, at a time of high crude oil prices.

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