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Bio-fuel to increase food and feed prices
The ever-increasing cost of oil is prompting the use of alternative
energy sources. Besides the focus on wind and solar energy, interest in bio-fuel
is also on the increase.
The ever-increasing cost of oil is prompting the use of alternative
energy sources. Besides the focus on wind and solar energy, interest in bio-fuel
is also on the increase.
Lester Brown, director of the US-based Earth
Policy Institute, foresees problems for the human food chain if more and more
grains, soybeans and sugar cane are used for the production of bio-energy. This year,
the global demand for grains and beans has increased by 20 million tonnes. The
US
ethanol distilleries and
bio-diesel refineries will use 14 million tonnes of it.
One has to
realise, Brown says, that one SUV will consume each year enough grains to feed
26 people. Since most of our basic food ingredients, grains, sugar, palm oil,
rice and soybeans, can be used to produce bio-fuels, the cost of crude oil
becomes an important issue for the feed and food industry.
Food giant
Unilever has already warned European authorities that permitting higher levels
of bio-fuels for cars could end in disaster for food supply.
The use of high
quantities of rape seed (an important ingredient for margarine production) for
bio-fuel production is a particular concern. The price of rape seed has
increased by 30 percent in the past year and may increase further this year,
which ultimately will have consequences for the consumer price of
foods.
The issue of
bio-fuels is an interesting one for the agri-industry. On one hand, farmers can
get a better price for their grains, and on the other hand farmers have to pay
more for the feeds they need for their animals. The poultry industry will have
to accept that feed prices may go up, while the price of the final product can
marginally be increased, so as not to lose too many consumers.
For that reason,
it may be interesting to have a closer look at how the poultry industry can
contribute to bio-fuel or alternative energy sources, so it can profit from the
increasing oil (energy) prices as well.
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