Members of the European Parliament have voted to limit the amount of biofuels that can be derived from food-based crops to 6%, but campaigners say the limit is too high and will lead to more rises in food prices.
Wednesday’s vote by the European parliament on proposed limits for biofuels has the power to determine future prices of food stuffs like vegetable oil, according to a report by the EU’s Joint Research Centre (JRC).
The OECD and FAO have today released their Agricultural Outlook for
2008 to 2017: Food prices will come down as temporary factors are
resolved, but longer-term factors will cause them to settle above
Rising food prices are exacerbating the food versus fuel debate in
Canada's breadbasket region, where critics say ethanol is diverting
valuable commodities away from food markets and proponents say
market economics will prevail.
The use of biomass for fuel should not jeopardise the food supply,
EuropaBio has proclaimed, but more European investment is needed in
second generation technology that does not compete with food
European ministers will today discuss whether propounding use of
biofuels is justified given their impact on food prices, and
whether first generation technologies are causing more
environmental harm than good.
The European Commission has published a new impact assessment on
the ten per cent biofuel obligation, in which it says cereal and
oilseed prices are likely to rise as a result of greater demand for
The burgeoning use of cereals and other commodities to satisfy
appetite for biofuels could keep food prices high for the next
decade, says the FAO, impacting developing countries, the urban
poor, and farmers' livelihoods.
World prices for many agricultural commodities may remain at
historical highs over the next decade, as the increase in demand
for biofuels continues to shape agricultural markets, says a new