The IMF warned that an increasing global reliance on grain as a source of fuel could drive up food prices in poor countries. 'The use of food as a source of fuel may have serious implications for the demand for food if the expansion of biofuels continues,' the International Monetary Fund said in its twice-yearly report on the world economy. It called for greater international coordination to ensure that policies promoting biofuels take account of their impact on consumer prices. 'One country's policy to promote biofuels while protecting its farmers could increase another (likely poorer) country's import bills for food and pose additional risks to inflation or growth,' the report said. It argued that this effect on food prices could be eased if the United States and the European Union reduced barriers to biofuel imports from developing countries such as Brazil, 'where production is cheaper, more efficient and environmentally less damaging.' The report questioned wheter it was advantageous for rich countries to turn to biofuel production in the face of rising oil prices. http://www.forbes.com/markets/feeds/afx/20...afx4229623.html
File under: (No sh** sherlock). And remember that food prices will be rising rapidly regardless of biofuel production. 1)We use massive amounts of oil to grow and transport food all over the world. 2)We are growing "fuel" in amounts inversely proportionate to oil production declines. 3)Without the biofuels, food prices would increase just as much, as the fuel cost to farmers and transporters will rise moreso or even become infeasable if there are oil supply problems. At least farmers could use biofuels to keep the food coming to the supermarket. Conclusion: Food costs will rise regardless.
