The U.N. Food and Agriculture Organization says that increased demand for biofuels will help revitalize the worldwide agricultural sector without putting our secure food supply in jeopardy. The Global Renewable Fuels Alliance is challenging the UN to reveal the true impact that crude oil prices have on food pricing and recognize that our heavy reliance on crude imports is one of the leading causes of food inflation and price spikes.
According to GRFA spokesperson Bliss Baker the FAO has recognized a variety of drivers behind food price spikes, such as drought, energy prices and trade restrictions; however, the impact of crude oil prices on food inflation cuts across all national boundaries and has a disproportionate impact on food prices. Baker says that as long as we are dependent on crude oil for our primary source of energy, we will continue to see food prices climb as crude oil prices climb.
"We are all very concerned about food price spikes and we certainly support the World Bank's recent analysis highlighting the crippling impact of oil prices and drought on food prices," Baker said. "There is no doubt biofuels are part of the solution. They reduce our reliance on crude oil and therefore limit the impact of crude oil prices on food inflation."
Powered by iNet Solutions Group ©2011 All Rights Reserved.