Friday, June 20th, 2008
Demand for green biofuels has played a ’significant’ part in pushing up food prices, a Government report says. Since April, all diesel and petrol sold in the UK has contained 2.5% biofuel, while by 2010 the figure will increase to 5%. Europe is considering a 10% target by 2020. Most biofuels are derived from food crops such as corn, palm, soya and rapeseed instead of a future ’second generation’ which could be based on non-food crops. In the U.S. around a third of all corn is used for fuel, while half of Europe’s vegetable oil goes towards biofuel production.
The current food crisis will continue unless Governments drop these targets and concentrate on cutting fuel use by improving public transport.
Tags: Biofuels, Food crisis, food prices, government targets, petrol prices
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Tuesday, April 15th, 2008
Families already struggling to cope with the credit crunch face huge increases in food bills because of global shortages. Costs are rising faster than at any time since 1991 (when there was a recession driven by sky-high inflation and interest rates) and the average shopping bill is likely to go up by £600 a year. Added to the impact of higher charges for mortgages, heat, light, water, petrol and council tax, the average family is likely to have to find an extra £1,500 a year, just to stand still. Worldwide food shortages have been caused by increased demand from countries such as China and India, together with poor harvests linked to droughts and floods. A decision by farmers to turn over their land to the growing of biofuels is also a factor. While biofuels have been presented as the solution to global oil shortages, they are now contributing to a lack of food. Some countries have suffered food price protests, while a number of nations are imposing limits on exports to protect their own supplies. The big question for British shoppers surrounds the extent to which supermarkets and other retailers will pass on the price increases. While profits will suffer if they swallow the rises, sales will inevitably fall if they pass them on.
Tags: biofuel, China, Credit crisis, Credit crunch, food bills, food prices, food shortages, global shortages, India, inflation, oil shortage, retailers, supermarket
Posted in Consumer, Credit crisis, Credit crunch, Finance, Food crisis | No Comments »
