30 April 2008 21:38 [Source: ICIS news]
John Block, former
He said that main drivers of increasing food costs worldwide include growing food demand in developing countries, droughts that have hurt grain crops globally, commodities speculators, the weak US dollar, grain export restrictions among some Asian producing nations and opposition to genetically modified grains that produce greater yields.
“Food demand is escalating in
“The droughts in
“There is a lot happening out there than just the minor influence of biofuels, and it is unreasonable to blame biofuels for a major part in this,” he said.
Rick Tolman, chief executive of the National Corn Growers Association (NCGA), blamed a “clever misinformation campaign that is trying to turn Bo Peep into an axe murderer”.
He pointed out that corn grown for ethanol is a different variety than that farmed for food, and that
Tolman also noted that
The rash of negative media and institutional reports about corn ethanol, he said, “are part of a clever misinformation campaign”.
“If you want to know the source of this misinformation, look at $4/gal gasoline and $120/bbl oil,” Tolman said. He suggested that oil producers and refiners have encouraged negative reports on biofuels to direct attention away from huge energy cost increases, especially in poorer countries that rely chiefly on oil imports.
Bob Dinneen, president of ethanol trade group Renewable Fuels Association (RFA), also cited sharp price increases for oil, gasoline and diesel fuel along with a surge in global food demand, the weak dollar and speculators as the real culprits in food price increases.
He also blamed European nations and some African countries for government policies banning genetically modified grains technology that could improve crop yields on both continents.
Block said that a positive side to rising food prices worldwide will be an inevitable increase in agricultural investments globally and an increasing acceptance for genetically modified food grains.
Block, Dinneen and Tolman all called for increased
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|