Food-versus-fuel debate

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	Notice - High-Level Conference on World Food Security and the Challenges of Climate Change and Bioenergy to be held by FAO in Rome, Italy, 3-5 June 2008. This event is webcast live here. BioenergyWiki page for this event: High-Level Conference on World Food Security.

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Note: A new wiki page is being developed on biofuel impacts on food prices.

Many biofuel feedstocks like corn, sugarcane, and soybeans are also key sources of food for millions of people. Production of crops for bioenergy uses may also displace other food-related crops, and otherwise increase the cost and decrease the availability of foodstuffs, including plant and animal-based foods. This page examines the debates over what the ideal balance between food and fuel is and links to articles and resources that touch on this debate.

Contents 1 Events 2 General 3 US Corn Ethanol 4 Mexico 5 China 6 European Union 7 Latin America

Events

• 3-5 June 2008, Rome, Italy: High-Level Conference on World Food Security and the Challenges of Climate Change and Bioenergy - (Themes: food security, climate change). Organized by the UN Food and Agriculture Organization (FAO). To be preceded by a series of expert meetings and stakeholder consultations; see meetings schedule.
  • BioenergyWiki page for this event: High-Level Conference on World Food Security.

• 23 July 2008, Washington, D.C., USA: Farm Foundation Forum: What's Driving Food Prices?. Discussion of a report "interpreting the rapidly growing literature on the forces driving food prices." (Themes: biofuels, food)

General

• Exclusive: we publish the biofuels report they didn't want you to read, 10 July 2008 in The Guardian: An internal report from the World Bank "argues that the drive for biofuels by American and European governments has pushed up food prices by 75%. That is in stark contrast with the White House's claims that using crops for fuel, rather than food, has only pushed prices up by 2-3%."
  • "Prompted by the Guardian's report, the Bank may now push the report out - although it may not be in quite this form."
  • Therefore, the Guardian has posted the original report here (PDF file).

• Secret report: biofuel caused food crisis, 4 July 2008 in The Guardian: "Biofuels have forced global food prices up by 75% - far more than previously estimated - according to a confidential World Bank report obtained by the Guardian."
  • "The figure emphatically contradicts the US government's claims that plant-derived fuels contribute less than 3% to food-price rises."
  • "Rising food prices have pushed 100m people worldwide below the poverty line, estimates the World Bank, and have sparked riots from Bangladesh to Egypt."
  • The report "argues that production of biofuels has distorted food markets in three main ways. First, it has diverted grain away from food for fuel, with over a third of US corn now used to produce ethanol and about half of vegetable oils in the EU going towards the production of biodiesel. Second, farmers have been encouraged to set land aside for biofuel production. Third, it has sparked financial speculation in grains, driving prices up higher."[1]
• Another Inconvenient Truth: How biofuel policies are deepening poverty and accelerating climate change (PDF file), published 25 June 2008 by Oxfam. Excerpts:
  • "Biofuel mandates and support measures in rich countries are driving up food prices as they divert more and more food crops and agricultural land into fuel production." (p. 3)
  • "The World Bank estimates that the price of food has increased by 83 per cent in the last three years....Thirty per cent of price increases are attributable to biofuels, suggesting biofuels have endangered the livelihoods of nearly 100 million people and dragged over 30 million into poverty." (p. 3)
  • "The International Food Policy Research Institute (IFPRI) notes that by forcing up food prices, rich-country support for biofuels acts as a tax on food – a regressive tax felt most by poor people for whom food purchases represent a greater share of income." (p. 3)
  • "Oxfam calls on rich countries urgently to dismantle support and incentives for biofuels in order to avoid further deepening poverty and accelerating climate change." (p. 3)

• Food-related industries launch anti-biofuel campaign, 10 June 2008 by Bloomberg.com, in the Houston Chronicle: In the United States, the "Grocery Manufacturers Association, the American Meat Institute, the National Restaurant Association and other groups say rising corn-based ethanol production is pushing food costs higher." Their new lobbying alliance, "Food Before Fuel", is "calling on Congress to step back and re-evaluate our biofuels policy, which is distorting the marketplace and harming the environment and consumers."[2]

• U.N. Chief to Prod Nations On Food Crisis, 2 June 2008 by the Washington Post: "U.N. Secretary General Ban Ki-moon will issue an urgent plea to world leaders at a food summit in Rome on Tuesday to immediately suspend trade restrictions, agricultural taxes and other price controls that have helped fuel the highest food prices in 30 years, according to U.N. officials....The United Nations will also urge the United States and other nations to consider phasing out subsidies for food-based biofuels -- such as ethanol".
  • The article notes that a "World Bank analyst estimated that biofuel production has accounted for 65 percent in the rise of world food prices, while the IMF has concluded that biofuel production is responsible for 'a significant part of the jump in commodity prices.'"
    • "But the United States has defended the production of biofuels, saying it has driven down oil consumption over the past three years. 'According to our analysis, the increased biofuels production accounts for only 2 to 3 percent of the overall increase in global food prices,' said Agriculture Secretary Ed Schafer".[3]

• The Impact of Biofuels on Commodity Prices, April 2008, published by Defra (Department for Environment, Food and Rural Affairs): "Other things being equal, biofuel production should put upward pressure on cereal, oilseeds and sugar prices. However, a closer look at recent price developments suggests that there are a number of factors affecting current commodity prices some of which are cyclical and some of which are structural in nature"
  • "The changes in agricultural prices have historically not been fully reflected in consumer prices."
  • "Several studies have attempted to evaluate the future impact of biofuel production on commodity prices; results should be interpreted with caution as work on models that combine agricultural and biofuel markets is still at an early stage."
  • "Second generation biofuel production has the potential to reduce land requirements and increase productivity."

• The World Food Crisis, 10 April 2008, editorial by the New York Times: "Last year, the food import bill of developing countries rose by 25 percent as food prices rose to levels not seen in a generation....The increases are already sparking unrest from Haiti to Egypt....The rise in food prices is partly because of uncontrollable forces — including rising energy costs and the growth of the middle class in China and India....But the rich world is exacerbating these effects by supporting the production of biofuels."
  • "The International Monetary Fund estimates that corn ethanol production in the United States accounted for at least half the rise in world corn demand in each of the past three years."
  • "At best, corn ethanol delivers only a small reduction in greenhouse gases compared with gasoline. And it could make things far worse if it leads to more farming in forests and grasslands. Rising food prices provide an urgent argument to nix ethanol’s supports."[4]
• Food prices to rise for years, biofuel firms say, 3 April 2008, by Reuters: "Staple food prices will rise for some years, but should eventually fall to historical averages as harvests increase, biofuel company executives said on Thursday."
  • Victor Deike of Novus Europe said that second-generation biofuels -- (those made from non-food crops such as jatropha, miscanthus or reed canary grass) "should take the heat out of food prices as many did not compete with food for land."
  • "Jean-Marc Jossart, secretary-general of the Belgium-based European Biomass Association (AEBIOM), said opinion was divided over whether second-generation biofuels could take the pressure off food prices....[since] crops such as miscanthus could also reduce the availability of land that could be used for food."[5]

• Biofuel boom threatens food supplies: Nestle, 23 March 2008, by AFP: "Growing use of crops such as wheat and corn to make biofuels is putting world food supplies in peril, the head of Nestle, the world's biggest food and beverage company, warned Sunday."

• Food vs. Fuel 5 February 2007, from Business Week. As biofuels like ethanol use up more and more food crops, the economics of agriculture is changing.

US Corn Ethanol

• Ethanol production was expected to use 20% of the total US corn crop in 2006 ^[6].
• Corn prices were at an 11 year high, with farmers getting up to $3.50 a bushel.^[7].
• With ethanol now a serious factor in grain markets, the debate over what the impact of the US ethanol industry will be on world food supplies has heated up.
• Boom in biofuel leading to higher costs for food, 11 May 2007 from the Asahi Shinbun. The increase in US corn going to ethanol production is driving up the prices of other products. In particular farmers are planting less soybeans, which has resulted in a 10% increase in the price of mayonnaise made by Japan's largest producer. It was their first price hike in 17 years. Beer and beef producers are also feeling the pressure.
• DISTILLERY DEMAND FOR GRAIN TO FUEL CARS VASTLY UNDERSTATED World May Be Facing Highest Grain Prices in History by Lester Brown, Earth Policy Institute (EPI), December 2006. This piece argues that "The competition for grain between the world’s 800 million motorists who want to maintain their mobility and its 2 billion poorest people who are simply trying to survive is emerging as an epic issue."
  • National Corn Growers Association challenges EPI's 'Eco Update' report 8 January 2007 from Biofuel Review. "Market forces, not broad assumptions, are driving the ethanol and corn markets. U.S. corn producers will continue to meet domestic and international demand for corn for use as food and feed and increasingly make a significant contribution to our quest for energy security. There is no conflict between the two, nor any pending crisis.
  • BIO refutes EPI report on role of biotechnology 5 January 2007 from Biofuel Review. "The Earth Policy Institute’s calculations fail to take into account recent developments in the ethanol industry that will ramp up production of ethanol from cellulose. The technology for production of ethanol from cellulose is ready today."
• U.S. Corn Growers: Producing Food and Fuel - National Corn Growers Association, November 2006.
• The Long-Run Impact of Corn-Based Ethanol on the Grain, Oilseed, and Livestock Sectors: A Preliminary Assessment (pdf) by Amani Elobeid, Simla Tokgoz, Dermot J. Hayes, Bruce A. Babcock, and Chad E. Hart; Center for Agricultural and Rural Development, Iowa State University, November 2006.

Mexico

• Nothing flat about tortilla prices - Some in Mexico cost 60 percent more, leading to a serious struggle for low-income people 13 January 2007 from the San Fransisco Chronicle. Tortilla prices in Mexico have risen as much as 60%. Some blame increased corn prices caused by US ethanol production, while others look at monopolies.

China

• Biofuels eat into China's food stocks - 21 December 2006 from Asia Times Online. China has clamped down on the use of corn and other edible grains for producing biofuels due to concerns that it will impact on food security.
• China halts expansion of corn-based ethanol industry to arrest food price rise - 20 December 2006 from newKerala.com.
• Grain for food takes priority over biofuel - 12 December 2006 from the China Daily. China's vice-minister of finance, has said that biofuels "must only be developed on the basis of guaranteeing China's food supplies first". Instead, the use of non-grain agricultural and forestry plants will be encouraged.

European Union

• Food industry calls for a more balanced biofuel policy February 5 2007 from Foodnavigator-usa.com. "With the increasing use of some of their raw materials for the production of biofuels, the food industry is calling on the European Commission to take measures to ensure they do not face further price hikes for their supplies."
• Biofuel expansion raises the risk of future famines 28 January 2007 from Gulf News. "Switching more land from food to biofuel production raises the risk of future famines, a conference organised by the Soil Association, Britain's leading organic certification body, was told."
• EU food demand for biofuel production in the near future is however not excessively high November 22, 2006. "Research presented at the third Amsterdam Forum for sustainable energy held on November 21-22 2006 in Amsterdam, [[The Netherlands], showed that although a 14% replacement in 2020 would require between 10 and 20% of current cereal production levels, depending on the share of so-called [[second generation technology that will be used by that time. This can be met by increasing average crop yields with 10% (or less than 1% per year) and bioethanol conversion rates with 5% (less than 0.5% per year). Such increases have been realised in the past. Another source of biomass is 3 million ha that currently is excluded from production in the so-called set-aside program. Thus, there no real need for expansion into non-agricultural (nature, marginal) land, especially outside of the EU. Figures are more promising for sugarbeet (bioethanol), but not so for oilseed rape (biodiesel). One should further keep in mind that, while currently multiple hundreds of millions of cereals are used annually for animal feed, the actual amount of food required to feed the 800 million or so malnourished in the world is accounted to 100 million tons only. This calls, therefore, for a more specified and balanced discussion on the issue of food-versus-fuel."

Latin America

• Brazil's president says biofuel crops are not pushing up food prices, 10 April 2008 by the International Herald Tribune: "Brazil's president insisted Thursday that crops used for ethanol are not responsible for driving up food prices, and said Haiti — where food riots have erupted recently — could benefit from a biofuel industry."

	Controversies concerning bioenergy	edit
Food security | Food-versus-fuel debate (Biofuel impacts on food prices) Food crops used for biofuels: corn

	Controversies concerning bioenergy	edit
Food-versus-fuel debate | Land-use change (Tropical forest conversion) Net energy debate | Peat burning | Sustainable agriculture

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