Fears over climate change have boosted the demand for alternative fuels in wealthy countries, but the rise of biofuel has been criticised by some who say it will put a squeeze on land needed for food."
"US food consumer prices, as measured by the government's Consumer Price Index, have risen from a year-over-year rate of 2.5 percent in September 2006 to 3.7 percent this past April.
The RFA-funded study found a US$1.00 increase in the price of gasoline will result in a 0.6 percent to 0.9 percent increase in consumer food prices compared a 0.3 percent jump resulting from a US$1.00 per bushel rise in the price of corn.
"One of the reasons why energy prices have a much larger impact on retail food prices than does the price of corn...is they affect the entire food system" ranging from production and transportation, said John Urbanchuk, author of the study and director of LECG, a financial consulting firm."
Two articles on the risks of engaging into biofuel production and the potential impact on food, poverty and migration. To really read this in context, look for previous posts about the decrease in food reserves and the increase in world food prices (Got Milk?, Cherchez le biofuel)