Biofuels and rising food prices
With the reality of climate change upon us, political leaders are in a rush to come up with alternative solutions to meet the world’s growing energy needs. The drive to reduce carbon emissions has encouraged the use of biofuels, but the ripple effect of using food as fuel is already being felt in supermarkets. The prices of pasta and other foodstuffs is on the rise.
Biofuels are so-called renewable fuels, produced from crops like soybeans, corn and sugarcane. They’re championed by many as a possible solution to the climate crisis and investment in the technology is booming. Critics, however, point out that countries in the global South call them “Agro-fuels” and their use is not a cause for total optimism.
Converting farm crops to biofuels
In Europe, renewable-fuels are supposed to satisfy ten percent of the transport needs by 2020 and the US is striving to obtain 35 billion gallons annually. Western nations do not produce nearly enough biofuel crops to meet this demand, forcing them to look elsewhere, particularly Africa and South America. Proponents argue this aids development. Others disagree, noting there are fewer and lower-paid jobs on large soybean plantations than small-scale farms. There are also alarming environmental factors.
Especially concerning to many is the alliance of big oil companies with producers of genetically modified foods and research institutes. There’s also concern about the production of these fuel crops which promotes excessive deforestation – often in areas already prone to drought. Clearing land for fuel crops has marginalized many subsistence farmers already living there, threatening their survival.
No where has this been more evident than in Brazil, which produces massive amounts of soybeans for biofuels. Also the world’s largest producer and exporter of sugarcane, Brazil converts half its harvest into biofuels. This has seen destruction of the rainforests and displacement of farmers and herders. There has also been a knock-on effect for consumers. Although only 10 percent of the worldwide sugar harvest is being used for biofuels, the price of sugar has already doubled!
Ironically, modern industrial agriculture also consumes an enormous amount of fuel. According to environmental activist, physicist and author Vandana Shiva, up to 30 percent of harmful greenhouse gases comes from food transportation.
Rising grain prices hit Italian pasta
Italians, as well known for their pasta as la dolce vita, are soon to feel the impact of rising grain prices. With the rise of durum wheat prices resulting from a poor wheat harvest and biofuel competition, consumers are expected to pay a 20 percent increase for pasta. This will also be felt in the export sector.
The Italian Pasta Manufactures Association said they can no longer absorb the high cost of wheat without passing on the increase to consumers. Italian pasta is made from durum wheat and manufactures receive only around 60 percent of it from Italy. The rest comes primarily from Canadian and Syrian imports. The Canadians have said they won’t have durum wheat for sale before November. Livestock farmers are also nervous, as the prices of grain they feed their animals is also soaring.
A recent report by the UN Food and Agricultural Organization (FAO) forecasts that wheat will increasingly be used for biofuel production in Europe and that this will impact consumers directly.
According to the UN Food and Agricultural Organisation (FAO) the effects of biofuels on food prices and security are likely to be uneven, depending on if a country is an exporter or importer of food or energy. Those most at risk will be the poor. According to Alexander Müller, Head of FAO's Natural Resources Management and Environment Department, "The world desperately needs a strategy to deal with the emerging food-fuel battle."
