03 June 2008
World Leaders Begin Debate on Crop Use for Biofuels, Food
U.S. official says biofuels account for only 2-3 percent of price increases
Washington -- The relation of biofuel production to the rising cost of food is expected to be a major point of discussion at a June 3-5 United Nations summit in Rome on world food security.
At a briefing in Rome with international reporters on the eve of the summit, U.S. Agriculture Secretary Ed Schafer took an early stance on behalf of his country, saying just 2 percent to 3 percent of the recent increase in food prices is due to biofuel production. Some others say biofuel production accounts for as much as 33 percent of the increase in food prices.
Schafer said he hopes the summit's biofuel discussions lead to some conclusions about the efficiencies of biofuels.
He said, for instance, that U.S. biofuel production has reduced by 1 million barrels a day the use of oil, which is itself at record-high prices. Furthermore, increased use of biofuel and less of oil is better for the environment, he said.
Biofuel-production technology has become more efficient, according to Schafer, who cited improved methods of producing ethanol by fermenting crop residues.
Schafer, who is leading the U.S. delegation in Rome, listed factors he said are driving the rise in food prices: increased worldwide consumption, which has led to reduced food stocks; rising energy costs; and trade barriers.
He said countries with export restrictions designed to protect their own short-term food security are making the situation worse by removing food from global markets, driving up prices and discouraging farmers from producing according to market signals.
Addressing the issue of trade restrictions, Robert Zoellick, president of the World Bank, urged countries immediately to lift restrictions and taxes on food purchases and for transportation of humanitarian food shipments to countries most in need, according to a June 3 press release.
The U.S. Department of Agriculture estimated that food prices will increase approximately 43 percent in 2008. But, Schafer said, favorable weather so far in 2008 in major areas of the world that produce wheat, rice and soybeans is expected to boost production significantly, which will contribute to food-price stabilization.
Approximately 40 heads of state and other government officials are expected to attend the meeting in Rome.
