Biofuel and Food Prices; Feed the People Not the Cars
Wed, Oct 8, 2008
UNITED STATES - With the economic crisis that is happening, we all have forgotten about an issue that is affecting the poorest of the poor, and that is the rise in food prices. Even though the price hike of food in the international market has slow down, the poor still can not afford to buy food at the price they are now.
“On one hand, it is consistent with expectations that inflation will start to taper off. But it is still higher for the poor and fixed income farmers,”-University of the Philippines economist and former Budget Secretary Of Phillipines Benjamin Diokno.
In Cambodia, the Asian Development Bank announced Wednesday $35 million in emergency food aid to ease the burden of soaring food prices among some of Cambodia’s poorest people. In Cambodia about 1/3 of the population live below the national poverty line of just $0.45/ day. A small increase in food price could leave these people starving. One of the main reason for the cause of the price hike is biofuel. A new study from The State of Food and Agriculture 2008 shows that biofuel is one of the reason that food price risen. It contributed about 15% of the rise of food price, 15% is a good amount of contribution. That is not a “small” contribution that people claim it to be. The important issue with biofuel also deals with government policy favoring them and not realizing its affect on food price.
“There is an urgent need to review existing biofuel policies in an international context in order to protect the poor and food-insecure and to promote broad-based rural and agricultural development while ensuring environmental sustainability.” - The State of Food and Agriculture 2008 (p. 94)
In the report it also states that with these numbers “it is important to emphasize that the projections are subject to a numberof uncertainties. Most importantly,they assume that basic agricultural commodities will continue to represent the bulk of feedstocks for ethanol and biodiesel throughout the next decade and that the technical and economic constraints that currently limit the production and marketing of biofuels based on other feedstocks will remain prohibitive. In particular, it is assumed that second-generation ethanol produced from cellulose and biomass-based diesel fuels will not become economically viable on any meaningful scale during the projection period.” The state of Food and Agriculture 2008 (p. 46)
So while we are worrying about what we put into our cars, there are people starving out there. Just because we want to save some money or save some carbon from being emmitted, we let the poor people starve themselves so we can feel a little better driving our cars. President of the world bank stated that, “While many are worrying about filling their gas tanks, many others around the world are struggling to fill their stomachs. And it’s getting more and more difficult every day”. The price of food is too high at the moment for people in 3rd world country. It is sad to see in a globalize economic world we are in today that people care more about their car then other human being.
What is more important? The people starving or the long term advantage of having biofuel? But is it fair to the poorest of the poor in countries such as Cambodia to be the ones making the biggest sacrifice of them all: their daily meals? Biofuel..sometimes I feel that it is just an excuse for us to feel better about not polluting the environment.
Tags: biofuel, economy, Economy & Business, food price, world economy
October 8th, 2008 at 3:53 pm
I have been against biofuel since I first heard about it. It was never a good idea. Food vs Fuel, great competition. NOT! I blogged about this and had a nice graphic on it: http://onaridge.blogspot.com/2008/01/corn-for-ethanol.html
October 9th, 2008 at 12:56 am
IMO, there is much more to it than biofuel. The dollar is horrible and secondly, the US government pays farmers to not farm. Growing up in Kansas (the #1 or #2 corn producer year in and year out), several of my friends families received large paychecks every year for not using their land. Hell, even the ones who did use it would buy government insurance. Basically, if the crops failed they would receive just as much, if not more than they would otherwise.
Of course, these are small farmers. However, supply vs demand means a lot in the food industry. These farmers were paid not to farm so the corn prices would remain relatively stable and at a profit for large corporations. Now that corn is being used for biofuel, naturally there is more demand, yet the same amount of supply.
So here’s what you do, quit paying farmers to not farm! It would increase the supply to (hopefully) the same ratio as it was before biofuel.
Just in case any of you are wondering, I’m not a corn biofuel guy. However, algae has shown some potential, yet still isn’t anywhere it needs to be. The US just really needs to buckle down and raise MPG on all new vehicles, build more nuclear plants (I know, nuclear is a dirty word, but it is a lot safer than it was 30 years ago… look at how much energy France gets from Nuclear, and it is much, much cheaper), and of course, invest in solar energy.
IMO, biofuel may be used as a stepping stone as long as it isn’t hurting food supply. But when there is relatively no government commitment to other alternative energies, there is a HUGE problem. Yes, I know coal is getting “cleaner”, but it is not the answer.
October 9th, 2008 at 7:52 pm
Thanks for putting this information out there. And Impnerd, you are right on with every point. I am a freelance writer and I write on Biofuels for a few different websites.
When I saw the headline, I was ready to jump in and start putting out some stats, but you and Impnerd have done well, all the way down to the algae.
Just a few points expand on an already good article?
Ethanol requires huge amounts of energy to produce (gas for tractors etc)
Ethanol is bad for the environment (gmo seeds, chemicals to double crop yield….)
In addition to raising global food prices, foods that were once grown on acres now taken up with ethanol corn, are being imported into this country (miles to market)
Ethanol is leading to deforestation
Keep up the good fight and Alter the Eco!
Adam Shake
October 12th, 2008 at 8:20 pm
The problem isn’t biofeuls, it is using corn. Switchgrass is better and doesn’t compete with people.
Except the problem isn’t corn biofeul, it is carnivory. Even if the corn didn;t go to feul it would go to pig feed for pork chops.
Except the problem isn;t carnivory, it is poverty. Even of there was no pig the corn would go into tortillas for people to buy because the corn is grown for profit, not charity.
In any case, no one is deciding to starve children to run cars. If they were, the problem would be as simple as you suggest.
In fact the would be no problem.
October 12th, 2008 at 10:56 pm
Men are creating more problems for themselves in this world. One day we will cause ourselves to extinct.
October 13th, 2008 at 4:26 am
The droughts and failed wheat crops in Australia over hte last few years haven’t helped the situation either. the price of grain here has trippled over the last 5 years, and so has hay.
Biofuel isn’t sustainable because it uses a recourse that was already limited and must now compete with it. I hope one day people will accept solar and wind energy rather than protesting to its development.
October 13th, 2008 at 7:51 am
There are poor people going hungry everywhere. With the current economic situation, more of us are going hungry. Sometimes it is a choice of putting gas in the car or buying food… if you don’t put in the gas you can’t get work, then you don’t eat…
There are many technologies out there that provide energy and/or alternative ways to fuel our transportation. Algae is one source of biofuel… but what about harnessing wind, geothermal, sun etc. Our car manufacturers refuse to develop a viable electric vehicle. The governent refuses to quit subsidising oil/gas/nuclear/coal… etc to allow for the development of these alternatives at an affordable price to the consumer. I would rather pay less taxes and the real price. That way MY VOICE is really heard….
Soapbox over
Have a great day!
October 13th, 2008 at 8:03 am
Interesting thoughts, you have given me something to think about.
October 13th, 2008 at 11:13 am
I think the main problem with poverty and expensive food is that the world is vastly overpopulated and continuing to grow alarmingly. As time goes by mans incessant demand for fuel and food will lead to bigger shortages.worldwide. Until we change things radically I can’t see a way forward
October 13th, 2008 at 12:34 pm
Everyone is worried about gas prices. Food prices are an even more important issue.
October 13th, 2008 at 6:17 pm
Sometimes it’s important to take a step back and look at the big picture. It’s hard however, when things like gas prices affect us directly, but world hunger is something that’s so distant from our every day lives. Perspective is always hard.
October 13th, 2008 at 10:01 pm
I absolutely agree with you. It’s bad enough that starvation is still a problem in the 21st century, I don’t think we should “steal” food for cars!
October 15th, 2008 at 9:37 am
We live in a world where there are not enough resources for everyone to drive a car. Also where everone gets basic medical care or a few get hugely advanced medical care and a majority will die if in need of basic help.
The fact that a resource has an extra use does not give us a new choice. There is enough food to feed all if everyone had a fair share of resources (money). We already choose to distribute resources unequally. I don’t agree but I can’t change it either.
October 22nd, 2008 at 5:47 am
It still hits me hard, reading this again.
Really wish people in charge will come to their senses.
November 9th, 2008 at 9:30 pm
While you make an excellent point, food isn’t the only substance that could be used as an alternate fuel. If cannabis was legalized, industrial hemp could be used to fuel our cars. For anyone stupid enough to assume that using industrial hemp would release “weed smoke” into the air, hemp contains no THC, or very small amounts as it is generally male, or hermaphrodite, plants. Check out some stuff from Jack Herer, he’s a pretty smart guy.