Farm subsidies, not ethanol, cause hunger - Lula

05 July 2007 17:50  [Source: ICIS news]

HOUSTON (ICIS news)--Farm subsidies in wealthy countries - and not ethanol - are to blame for world hunger, Brazil President Luiz Inacio Lula da Silva said on Thursday.

There is no lack of food in the world, but rather a shortage of income that is linked to large farm subsidies given in the developed world, Lula was quoted as saying in reports by the Brazilian press. He was attending an industry event in Brussels.

Brazil’s experience shows that food and biofuels production are compatible, Lula said, adding that poverty in Brazil had actually decreased due to increased ethanol production, according to media reports.

Brazil and the US have drawn fire from biofuels critics, who claim mass production of bio-based fuel ethanol will result in less crops for food, which will lead to widespread hunger in poor countries.

Chief among such critics are Cuban leader Fidel Castro and Venezuela President Hugo Chavez, both of whom resent the growing ties between Brazil and the US in the biofuels sector.

Although Brazil has signed a biofuels cooperation agreement with the US, and now with the EU, Brazil claims farm subsidies granted in both regions are hurting the competitiveness of agricultural production in developing countries.

A refusal by the US and the EU to cut farm subsidies led to the collapse in 2006 of the Doha Round of World Trade Organisation (WTO) negotiations.

By: William Lemos
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