Global food crisis looms as climate change and fuel shortages bite[Biofuels]

The Guardian ^ | 03 Nov 2007 | John Vidal

[BGHater]

Soaring crop prices and demand for biofuels raise fears of political instability

Empty shelves in Caracas. Food riots in West Bengal and Mexico. Warnings of hunger in Jamaica, Nepal, the Philippines and sub-Saharan Africa. Soaring prices for basic foods are beginning to lead to political instability, with governments being forced to step in to artificially control the cost of bread, maize, rice and dairy products.

Record world prices for most staple foods have led to 18% food price inflation in China, 13% in Indonesia and Pakistan, and 10% or more in Latin America, Russia and India, according to the UN Food and Agricultural Organisation (FAO). Wheat has doubled in price, maize is nearly 50% higher than a year ago and rice is 20% more expensive, says the UN. Next week the FAO is expected to say that global food reserves are at their lowest in 25 years and that prices will remain high for years.

Last week the Kremlin forced Russian companies to freeze the price of milk, bread and other foods until January 31, for fear of a public backlash with a parliamentary election looming. "The price of goods has risen sharply and that has hit the poor particularly hard," said Oleg Savelyev, of the Levada Centre polling institute.

India, Yemen, Mexico, Burkina Faso and several other countries have had, or been close to, food riots in the last year, something not seen in decades of low global food commodity prices. Meanwhile, there are shortages of beef, chicken and milk in Venezuela and other countries as governments try to keep a lid on food price inflation.

[goldstategop]

We can blame liberals now for starving children in the Third World.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[Always Right]

We can blame liberals now for starving children in the Third World.

All in the name of combating the phony global warming problem. Liberals would be happy if about 1/2 of the population was wiped off the globe.

[mtbopfuyn]

Obviously Mexico has a shortage of lettuce pickers. But, then again, is there anyone left in Mexico to eat the lettuce?

[silentreignofheroes]

“The French Revolution” on a Global scale...?

[RayChuang88]

It’s time to stop using sugar cane and corn for biofuels and switch to something more practical like switchgrass and oil-laden algae, both of which will far less affect food production. And with improving technology for cellulosic ethanol extraction, we don’t need to grow so much agricultural products just for ethanol production, since the entire plant can be turned into ethanol.

[alecqss]

Empty shelves in Caracas and price freeze in Russia... Considering all these petrodollars... I know that Russia blames the USA (subprime mortgage troubles). What is Venezuela excuse?

[DeaconBenjamin]

Empty shelves in Caracas. Communist (Chavez)

Food riots in West Bengal Communist (state gov't)

Food riots in Mexico. Socialist control over large elements of economy.

Warnings of hunger in Nepal Maoist

governments being forced to step in to artificially control the cost of bread, maize, rice and dairy products. Creating more shortages

[thackney]

switch to something more practical like switchgrass and oil-laden algae

The world probably will after the technology exists to economically produce it from them. It does not exist today but holds promise of future development.

[Western Phil]

“with governments being forced to step in to artificially control the cost of bread, maize, rice and dairy products.”

There is no shortage of corn (maize) at Anderson’s elevator on the way to Champaign. There is a big pile out front and a big pile out back, both out in the weather and bigger than they have been in the past. I think the bins are full of soy beans. There are no train cars on the siding to haul it away and my guess is that there are no custumers for the grain.

[taxcontrol]

I’m of the opinion that CNG is a better alternative to bio-fuels. Much of the infrastructure is already in place for the distribution of NG and relatively minor tax changes can rapidly expand that infrastructure.

[goodnesswins]

Considering most of the liberals I know are very fat.....I’d say they can give some of their food away to those who need it!

[Balding_Eagle]

It’s time to stop using sugar cane and corn for biofuels and switch to something more practical like switchgrass and oil-laden algae, both of which will far less affect food production.

Why?

We STILL have surplus production. It it took 20 years to double corn production, now it may very well double again in the next 10, what are we going to do with the mountains of corn and other crops?

[keepitreal]

No, headline should read: “Fake Climate Change Crisis Causes Environment-Worshippers to Take Food Out of Children’s Mouths to Make Themselves Feel Better.”

[been_lurking]

CNG is a better alternative to bio-fuels. Much of the infrastructure is already in place for the distribution of NG and relatively minor tax changes can rapidly expand that infrastructure.

If NG is a "better alternative" then it should be able to stand on it's own merits in the marketplace.

Why would you suggest government interference in the form of taxes, instead of capitalist market forces? Why would anybody want to use taxes to control any aspect of society?

Taxes are the problem, not the solution.

[UB355]

I just talked to a fleet manager at a medium sized county’s transit system. They got rid of their eight CNG fueled buses, too much trouble and too mush $ maintaining them.

He told me that the new generation diesel engines equal the emissions of the CNG powered buses

[RayChuang88]

Actually, several companies are pursuing the development of growing oil-laden algae on a huge scale, which could make it really practical to use the algae to make diesel fuel, heating oil and kerosene, along with ethanol from the waste product. Switchgrass will take longer due to the need to improve the process of making cellulosic ethanol.

[thackney]

Yes, but neither technology is economical yet. We cannot switch to the process until the development reaches an point of economical return. This country doesn’t need yet another subsidy program.

[RayChuang88]

He told me that the new generation diesel engines equal the emissions of the CNG powered buses

Thanks to the latest diesel engines going to pressurized common-rail direct fuel injection and the use of advanced emission control systems to remove harmful NOx and diesel particulates, the latest diesel-powered buses emit a tiny fraction of the air pollution of older buses. And companies like Cummins, Catepillar, Daimler-Benz, etc. are working on even more advanced technologies that could make diesel engines eventually meet the even more stringent EPA Tier 2 Bin 3 and CARB AT-PZEV standards for exhaust emissions by 2011, an amazing engineering feat.

[sphinx]

The price rises are a result of record oil prices, US farmers switching out of cereals to grow biofuel crops, extreme weather and growing demand from countries India and China, the UN said yesterday.

You have to read midway through the article to reach this, but here 'tis. The statement above is true. Of these four factors, however, biofuels is the least significant factor affecting food prices, at least according to the ag economists. There is really no mystery about this. There are a lot of folks in the value chain downstream of the farmer.

The rule of thumb in the U.S. is that raw commodities prices are a quarter or less of the end cost of food to the consumer. The bulk of the cost is attributable to transportation, processing, labor, advertising, and marketing. Rising oil prices are, by themselves, probably a bigger cost driver for food than the diversion of feedstocks to biofuels.