Biofuels and food

01.04.2008

Recent price increases in corn and wheat have cascaded in the food chain resulting in a price increase in foods (pasta, bread, milk, meat), which was swiftly attributed to increased biofuels production. While it is true that the price of agricultural raw materials has risen, the alleged impact of biofuels on food price is disproportionate and a number of factors, including bad harvests in Australia and Ukraine in 2007 and an increased demand for meat in developing countries are responsible.