Biofuel and food prices

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 feedstock). They further argue that such a shift in technology is absolutely necessary if we are to get anywhere near the targets set. This is roughly the same type of analysis that also lies behind the earlier McKinsey report, and that projected it is time for biofuels "take off".

This is NOT, however, to say that there is no 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.