Count one up for the anti-biofuel side. According to Olivier de Schutter, the special commissioner in charge of Food Rights at the United Nations, so-called "green fuels" are a determinant factor in the world's food crisis. De Schutter believes that 100 million hectares (about 247 million acres) will be necessary to produce five percent of our fuel needs by 2015, something he considers simply impossible. He also said that American plans to produce 36 billion gallons of biofuels by 2022 and the E
LC Biofuels is trying to explain why its biodiesel is not getting any cheaper. According to the Biodiesel Blog, the company has sent out a letter that describes how the ever-increasing price of raw materials and diesel fuel seriously impact its biodiesel prices. The weak dollar - which makes it more lucrative for soybean producers to sell their product to China - also plays a role.
Here's the deal: ethanol is not the only reason that the average price of a bowl of cereal and milk is moving from 44 cents last year to 49 cents this year to an expected 56 cents next year. But, as AP writer Lauren Villagran explains, a weak U.S. dollar, high fuel prices and China's growing economy don't hide the fact that the rapid increase in corn ethanol production is affecting people at the grocery store. And so, the "worst bout of food inflation since 1990" does have something to do with a