According to a leaked World Bank report, biofuels has been the primary cause of food prices going up. Grains which were earmarked for food and got diverted to producing biofuel has been the primary culprit. Plus grain speculators jumped on the bandwagon to further drive the price of grain up. The other is the increasing demand for this feedstock by the European Union and the United States for their biofuel industries so as to ween themselves off of oil.
The report, originally finished in April this year was not released so as not to embarrass the US president who recently said that biofuels caused only a 3% increase in food prices.
The report was written by a senior World Bank economist and stated specifically that biofuel production caused the price of food to go up by much as 75%. And that is the problem if you use existing land allocated for food crops for biofuel as well as using feedstock that is also being consumed by human. The EU and the United States really have to rethink their biofuel strategy.
The World Bank actually has ten point agenda on how to solve the world food crisis:
1. World Food Programme
* Fully fund the World Food Programme’s emergency needs
* Support its drive to buy food aid locally
* Ensure the unhampered movement of humanitarian assistance2. Safety Nets
Support safety nets, such as distributing food in schools or offering food for work, to quickly help those in severe distress.3. Seeds and Fertilizer
Get seeds and fertilizer for the coming planting season to farmers in poor countries. The key is not just financing, but fast delivery systems.4. Agricultural Research
Double spending on agricultural research and development to $800 million over the next 5 years through the Consultative Group on International Agricultural Research.5. Agribusiness
Invest more in agribusiness to tap into the private sector’s ability to work across the value chain.6. Risk Management
Develop innovative risk management tools and crop insurance to protect poor farmers and help build food security.7. Biofuels
Ease subsidies, mandates and tariffs on biofuels derived from corn and oilseeds. Policymakers should consider “safety valves” that ease these policies when prices are high. The choice does not have to be food or fuel.8. Export Bans
Remove export bans that have led to even higher world prices. 28 countries have imposed such controls. Removing these bans could have a dramatic effect.9. Trade
Conclude the Doha WTO trade deal to remove agricultural subsidies and tariffs and create a more efficient and fair global food trade. The need for multilateral rules has never been stronger.10. Collective Action
Work together to counter global risks. The challenges of energy, food and water will be drivers of the world economy and security.
The time to act is now.
Nothing there about population control for the food and fuel crisis. And them not wanting to embarrass President GW Bush? Just goes to show who really controls the purse strings in that bank.
[source]
Category: Food vs Fuel, Biofuel
