Biofuel and food-prices.
Hans De Keulenaer
More and more often we are reading about the concern that biofuel will have an adverse impact on global food-supply and on food prices. We even hear that it is already a fact and the explanation for rising food-prices in Europe.
Well, says the European Commission, that might be the case, but hardly likely if we also develop the second generation of fuel (based on cellulosic feed-stock). They further argue that such a shift in technology is absolutely necessary if we should get anywhere near the targets set. This is roughly the same type of analysis that also lies behind the McKinsey report earlier and that projected that it is time for a "take-off" for biofuels.
This is however NOT to say that there should not be a reason for concern!
There are still risks for monoculture cropping especially in developing
countries who might be anxious to cut in for the export-gains and pay
less attention to local needs. We have certainly seen that happen with
so many direct food-related industries such as fishing in northern
Africa and in several places in Asia.