I am not yet ready to believe the current wave of criticism, especially one emanating from a report noone has been able to read (except some Guardian reporters).
The World Bank itself is suspect; it might be trying to divert attention from the fact that globilization policies are being blamed by some groups for the dramatic rise in food prices. For those of you who don't know, places like Haiti used to be self-sufficient in food until liberalization policies caused cheap imported grain to flood the market and crowd out the local agricultural base.
http://www.vivelecanada.ca/article/ 235929902-world-bank-is-behind-food- crisis
The industrialized, subsidized crops from the U.S. and E.U. can easily out-compete lo-tech, local crop producers without massive governments to support them.
There are a couple other issues:
1. Ethanol's percentage of total global crop production usage has gone up significantly in the past decade; the only problem with that is it went from tiny to small; it is not even close to being a major factor in global crop production.
2. Ethanol is mainly derived from non-staple crops: corn, soy, sugar cane. Corn and Soy, however, are used primarily as animal feed; it would follow that meat prices would rise (somewhat) from this.
The food crisis is stemming from a sudden, sharp rise in wheat and rice; foods not typically used to make ethanol.
The charge leveled, though, is that land usually used to make food is being turned over to bio-fuel use. I have seen no numbers on this and it seems unlikely that this is the major cause as, again, the amount of bio-fuel crops grown versus food stuffs is probably not even 5%, it couldn't account for the rise.
There are too many other factors that seem to make more sense with regards to the rising food prices; most notably the dramatic rise in oil prices, extreme weather (drought, floods) in the U.S. Midwest, Australia and other nations, rising demand, speculation, subsidies, and others. I find it hard to believe that beside all of these factors Bio-fuels is the major culprit.
Now, I am not actually pro-biofuels. There are a number of reasons to be against them as a major energy source; in the long-run food prices would rise considerably (I am not willing to believe, just yet, that it is possible for this effect to happen so soon). There are also additional problems with the destruction of rain forests and other natural habitats. Of course, there isn't enough land on Earth to supply our current or future fossil fuel needs with bio-fuels.
Still, I think bio-fuels can be part of the solution, along with conservation, recycling, reduction in fuel use, efficiency measures, mass transit, taxes, regulations..etc...etc..
Posted 61 days ago