Biofuel increases food prices

Posted on Monday, May 28 2007 @ 06:15 CEST by Thomas De Maesschalck
Rising demand for corn as a source of ethanol-blended fuel is increasing food prices all over the world, industry experts report.
Food prices rose 10 per cent in 2006, "driven mainly by surging prices of corn, wheat and soybean oil in the second part of the year," the International Monetary Fund said in a report.

"Looking ahead, rising demand for biofuels will likely cause the prices of corn and soybean oil to rise further," the authors wrote in the report released last month.

Statistics Canada says consumers in the country paid 3.8 per cent more for food in April 2007, compared to the same month last year.

Jyoti Sahasrabudhe, an independent food industry consultant in Calgary, says consumers would be amazed to learn just how much of their food contains corn.

In a recent trip to the grocery story with CBC News, Sahasrabudhe underlined the point.
More info at CBC.


About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.



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