Biofuel Demand Keeps Food Prices High [Headlines]
A Farm Foundation report reveals that the need for biofuel is indeed the reason for high food prices in the past year.
Demand for biofuels in the US is driving this year’s high food prices, a report has said. It predicts that food prices are unlikely to fall back down for another two years.
The report, produced by Purdue University economists for the Farm Foundation policy organisation, said US government support for ethanol, including subsidies, had fuelled strong demand for corn over the last five years.
A dramatic rise in Chinese imports of soybeans was also putting pressure on prices and supply, the report said. Suzanne Goldenberg/The Guardian.