BRUSSELS, Belgium:
The European Union's senior agriculture official defended the bloc's
push for biofuels Tuesday and said biofuel crops are being unfairly
blamed for soaring food prices around the world.
Mariann Fischer Boel, the EU's commissioner for agriculture, said
other, larger factors were behind the price increases, which have
triggered public unrest, especially in Asia and Africa.
The production of biofuel crops such as canola, corn, soybeans and
sugarcane has led to the deforestation and a reduction of land
available for growing crops for food. That has led many experts to
blame such crops for contributing to the price rises.
British Prime Minister Gordon Brown is among those who have called
for a re-examination of the push for biofuels, which have been promoted
as a way to reduce pollution and fight global warming.
Fischer Boel, speaking at a biofuels conference, said the issue was
more complex and the concern over biofuel crops was overblown.
She said bigger factors were at work, namely increased demand for
meat and dairy products, particularly in China and India, which has
reduced farmland for growing food crops. She also noted that bad
weather in 2006 in North America, Russia, the 27-nation EU and in
Australia last year led to less production.
Also — but harder to quantify — grain and other food commodity
speculators have pushed up prices, she said. She said investments in
commodity indexes that totaled US$10 billion in 1998 reached US$142
billion by 2007.
In February alone, 140 commodity-based financial products were
launched for investors, according to EU data. That is double the number
issued each month in 2006 and 2007.
Fischer Boel said the "media storm" about higher food prices also
ignores the fact that "in the long term, price rises ... could be good
news for the 70 to 80 percent of the world's poorest who live in rural
areas and depend on farming for their livelihood."
As it seeks to limit reliance on foreign energy sources, the
European Commission, the EU's executive office, has set a target for
biofuels to account for 10 percent of energy used by the transport
sector by 2020. The transport sector accounts for more than 20 percent
of the EU's greenhouse gas emissions.
The 10 percent biofuel target remains realistic, said Fischer Boel, and can be achieved in an environmentally sustainable way.
She said the EU now uses less than 1 percent of its cereal
production to make ethanol. Two-thirds of its canola production is for
biodiesel but that production as a whole accounts for only 2 percent of
global oil seed demand.
She painted a generally upbeat outlook for both biofuel prices and production.
Fischer Boel said the EU expects an extra 34 million tones of grain
annually due to better yields. Putting land back into production that
had been "set aside" when European farmers overproduced food will add
an extra 12 million tones of cereals annually, Fischer Boel said.
Also, Russia, Kazakhstan and Ukraine can potentially raise their cereal output by up to 70 percent, she said.
Her views clash with those of Jeffrey Sachs, head of the Earth
Institute at New York's Columbia University and a special UN adviser.
Speaking on Monday at the European Parliament, he said the fact that
a third of the US maize crop is used for fuel "is a huge blow to the
world food supply." He acknowledged the U.S. biofuel program has had
more impact on food shortages but that Europe's plans for more biofuel
output will also start to bite.
Last month, top international food scientists recommended a halt in
the use of food-based biofuels, such as ethanol, because they say it
would cut corn prices by 20 percent during a world food crisis.