French authorities are set to amend their reliance on food crop use for biofuel production, a new report claims, amidst industry concerns over the impact of alterative fuel on commodity prices.
The debate over whether biofuels are a major factor in rising food
prices lugged on this week, with the Bush administration for the
first time acknowledging there may be some truth to this.
Farmers in the US are expected to plant significantly fewer corn
crops than last year, pushing the price up to a record high of $6 a
bushel, the US Department of Agriculture (USDA) warned last week.
Proposed directives for promoting the use of biofuels fail to
tackle concerns within the food industry on the possible impact on
food and feed supply, according to the CIAA.
Nestle SA chief executive Peter Braback condemns proposals for
increasing biofuel production as morally unacceptable, warning they
will have devastating effects on food supplies.
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
sources.
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.
Europe's food and drink industry has called on world leaders to
ensure that prices remain stable for agricultural supplies when
they consider the impact of biofuels on the world market.
The EU's food and drink industry yesterday called on the bloc's
governments to take action on halting price rises for their
supplies, as more crops are diverted for biofuel production.
With the increasing use of some of their raw materials for the
production of biofuels, the foodindustry is calling on the European
Commission to take measures to ensure they do not face further
price hikes for their supplies.
The era of biofuels is here but this does not necessarily mean
unending food price shocks or a critical diversion of agricultural
production away from food.
