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People & Power – Global Crisis: Food Shortages/Biofuels 2008 04 20 (Al-jazeera) avi
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People & Power – Global Crisis: Food Shortages/Biofuels 2008 04 20 (Al-jazeera) avi
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http://english.aljazeera.net/NR/exeres/AE731C4F-5405-40C5-85D5-F8066DE39777.htm
The US is the world's largest biofuel producer
One of these reasons for the world food crisis is Biofuels. The IMF estimates that corn ethanol production accounted for at least half the rise in world corn demand in each of the past three years.
In his film Food or Fuel, which aired last September, Bob Abeshouse explained how their production can lead to food shortages.
The production of ethanol from corn is expanding massively in the US, hailed as a way to combat global warming and energy dependency.
But some experts argue that the ethanol boom is driving up world food prices, putting additional pressures on low-income countries that import food.
One study predicts there could be as many as 600 million more chronically hungry people in the world by 2025 as a result of the biofuels expansion.
This segment explores the tension between the ethanol push and world food prices, paying particular attention to the tortilla crisis in Mexico in early 2007 that was linked to high corn prices arising from the increased demand for US corn to make ethanol.
Globally, the world multilateral institutions, the World Bank and its twin institution the IMF, have come up with a "New Plan".
They are calling on richer nations to contribute $500 million to ease the burden and have decided on a joint action plan.
Samah El-Shahat discusses the role of these organisations and the outcomes of the food crisis with Sir John Holmes, the UN undersecretary-general for Humanitarian Affairs and Emergency Relief Coordination, and Lester Brown, the president of the Earth Policy Institute.
Cap shunster ex - http://www.youtube.com/watch?v=z6mGIHy6Nmo
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Uploaded on | Apr 22, 2008, 04:50:24 |
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1 Comment
There is a confused understanding of what are the likely dynamics with regard to food prices. The least likely is the argument that ethanol from food crops is the major culprit for the price rise. This story is nonsensical for the simple reason that ALL commodities have gone up in price, not just food items. Iron, aluminum,copper and so on have gone up in price.Sorry but it is a stretch of the imagination to blame that on Ethanol production.
Most ethanol is being made in the USA and Brazil from crops that can be used for food. It should be pointed out that most corn is produced as cattle feed and there is no shortage of it. There is a shortage of rice but it has nothing to do with ethanol . The problem there has been the drought in Australia, not ethanol production. The real cause for price rises is mostly the dramatic increase in oil prices and the major cause for that is the war in Iraq. Two factors are prominent causes of this inflation. The devaluation of the dollar and the plethora of dollars caused by speculation, especially on margin. Further the war is being paid for by debt which further increases the money supply. The feds lowering the interest rate is another foolish inflationary policy.
Corn has seen the lowest price rise and wheat has seen the highest price rise. That too is inconsistent with putting the blame on ethanol.
But what has made oil go up so high. The official party line has been an increase in demand from India and China. That is part of the story but a small part of it. Again the war has to be blamed. Look at the rise of oil prices, they go in spurts based on news from the middle east, especially Iraq. There is plenty of oil. Notice that there is no rationing nor even a cut in speed limits which would save billions of gallons of oil. The cost of oil production has not gone up precipitously, the price has! WE SHOULD EXPECT TO SEE CONSIDERABLE INFLATION ON ALL ITEMS.
Most ethanol is being made in the USA and Brazil from crops that can be used for food. It should be pointed out that most corn is produced as cattle feed and there is no shortage of it. There is a shortage of rice but it has nothing to do with ethanol . The problem there has been the drought in Australia, not ethanol production. The real cause for price rises is mostly the dramatic increase in oil prices and the major cause for that is the war in Iraq. Two factors are prominent causes of this inflation. The devaluation of the dollar and the plethora of dollars caused by speculation, especially on margin. Further the war is being paid for by debt which further increases the money supply. The feds lowering the interest rate is another foolish inflationary policy.
Corn has seen the lowest price rise and wheat has seen the highest price rise. That too is inconsistent with putting the blame on ethanol.
But what has made oil go up so high. The official party line has been an increase in demand from India and China. That is part of the story but a small part of it. Again the war has to be blamed. Look at the rise of oil prices, they go in spurts based on news from the middle east, especially Iraq. There is plenty of oil. Notice that there is no rationing nor even a cut in speed limits which would save billions of gallons of oil. The cost of oil production has not gone up precipitously, the price has! WE SHOULD EXPECT TO SEE CONSIDERABLE INFLATION ON ALL ITEMS.
Apr 26 2008, 06:57 CEST
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