Nestle blames biofuels for high food prices

[cali]

By James Melik Reporter, Business Daily, BBC World Service



The head of the world's largest food producer believes high prices are due to the growing of crops for biofuels.

"The time of cheap food prices is over," says Nestle chairman Peter Brabeck-Letmathe.

He is highly critical of the rise in the production of bio-diesel, saying this puts pressure on food supplies by using land and water that would otherwise be used to grow crops for human or animal consumption.

"If no food was used for fuel, the prices would come down again - that is very clear," he says.

"We are now in a new world with a completely different level of food prices because of the direct link with fuel," he says.

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http://m.bbc.co.uk/news/business-18858444

[FarCenter]

1. In a free economy, the market allocates resources go to their highest valued use

Such as food being allocated to propel an SUV down the interstate.

[lumberjack_jeff]

2. Ethanol is a problem, biodiesel not so much.

Biodiesel can be made from feedstocks unsuitable for food, on land unsuitable for farming.

[FarCenter]

4. I thought that most biodiesel was made from palm oil in Malaysia and other SE Asian countries?

Also jatropha.

[lumberjack_jeff]

7. Rapeseed and soybeans are the most common feedstocks at present.

... and it's not ideal.

However, it can be made from algae, but without a developed market for it, it's unlikely that anyone will invest in taking the next step to large scale algae farming.

[Motown_Johnny]

3. and I blame sugar subsidies for candy being so freaking cheap

What's his point?



Although corn based ethanol was always a mistake. I wouldn't have a problem with gasoline no longer containing any.

Bio-diesel is more efficient and we should be continuing to move in that direction, even when it is corn based.

[FarCenter]

5. Ethanol is in gasoline in place of MTBE to provide an oxygenator

EPA pollution requirements on gasoline.

There was considerable debate about whether 1 Joule of ethanol energy cost more or less than 1 Joule of petroleum and natural gas energy to do the tillage, pesticide, fertilization, cultivation, harvesting, transportation, fermenting, distilling, and transportation to the gasoline blending point.

Palm oil probably gives a better return on energy used in its production, but it requires land in a part of the world with dense populations.

[Motown_Johnny]

10. It is still possible to buy ethanol free gas

http://pure-gas.org/

Judging from the stations near me they seem to be for boats.




I think the ethanol v petroleum debate is over. Ethanol is a waste.


I would love to see the numbers on pollution created in ethanol production v pollution reduced by adding ethanol to gasoline.

The EPA might really want to revisit this one. It would be a great October surprise if we could deregulate this requirement (not that it would happen that fast).

[Skidmore]

6. Perhaps they should quit putting high fructose corn syrup in everything.

[4th law of robotics]

8. I'm sure they would if we'd stop subsidizing it to such an degree

that corn syrup is the cheapest option by far.

[LiberalAndProud]

9. If we need the corn, we could stop feeding it to the dogs.

http://www.hillspet.com/cat-care/corn-an-amazing-grain-mature-adult-cat.html