Ag price decline vindicates biofuels, group says

07 August 2008 18:28  [Source: ICIS news]

TORONTO (ICIS news)--The significant drop in agricultural commodity prices since early July underlines that biofuels were not responsible for the run-up in global food prices, German biofuels industry group Verband der Deutschen Biokraftstoffindusrie (VDB) said on Thursday.


The price declines, and experts’ forecasts of further declines in coming weeks, contradicted recent high-profile reports that had predicted further price increases and pointed the finger towards biofuels, said VDB general manager Johannes Lackmann


Those studies often reflected only “dull populism,” despite their claims of scientific methodology, he said.


The fuel-food debate had turned out to be without substance and there was no justification for lawmakers to reduce biofuels targets and quotas, he said.


The world had sufficient land available to produce both food and biofuels in a sustainable manner, Lackmann said, adding that the proportion of worldwide agricultural land used for biofuels was still very small, only about 2%.


Increased biofuels production would help stabilise farmers’ incomes, which would be positive for developing countries as well, he said.


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