on May 16th, 2007
Soon, you may have a choice - eat food OR drive a car
It sounds daft, but it may soon be a reality for some poorer people. In our poorly-thought out rush to be green, the demand on many cereal crops for use as a base in biofuel production means that demand is outstripping supply. This means that prices will rise further, taking some basic foods above levels that some people will be able to afford - you drive, they starve.
As global oil production has or is about to peak, the switch from fossil fuels is a good thing, but not enough has necessarily been done in developed countries to reduce energy consumption rather than just switching from fossil to biofuels. The availability of an alternative fuel source has meant most people have become complacent about the problem, without realising or understanding that there is not productive enough land in the world to grow crops for fuel and food.
Of course, with higher relative incomes and a better standard of living, it is not the people in developed countries that will feel the negative effect of biofuels first, it is those in the developing countries, who it is predicted will also suffer the early effects on global warming more than most.
Today, the UN FAO (Food and Agriculture Organisation) stated that world cereal production in 2007 is on track to reach a record level of 2 095 million tonnes, a rise of 4.8 percent over 2006 levels. But with stocks at their lowest level in over two decades, total supplies would still be barely adequate to meet increased demand, boosted by the fast-growing biofuels industry.
International prices for most cereals have risen significantly in 2006/07 so far and are likely to remain high in 2007/08, according to FAO’s latest Crop Prospects and Food Situation report. As a result, the cereal import bill of the low-income food deficit countries (LIFDCs) is forecast to increase by about one-quarter in the current season.
