Just recently, José Graziano da Silva, agronomist and director-general for UN's Food and Agricultural Organization, backed up a request made by US's National Cattlemen's Beef Association which stated that the country's current biofuel production standards need be lowered as soon as possible so as to avoid a potential food crisis.
When we first reported on this issue, we said that, due to changes in environmental conditions (i.e. the drought which had severe negative impacts on most American states), the US's corn production has been considerably altered.
More so given the fact that the standards presently up and running for American biofuel production are quite likely to destabilize the market and make corn prices go through the roof.
Business Green informs us that, in an article published by the Financial Times, José Graziano da Silva explained how, “With world prices of cereals rising, the competition between the food, feed and fuel sectors for crops such as maize, sugar and oilseeds is likely to intensify. One way to alleviate some of the tension would be to lower or temporarily suspend the mandates on biofuels.”
Furthermore, “At the moment, the renewable energy production in the US is reported to have reached 15.2 billion gallons in 2012, for which it used the equivalent of some 121.9 million tonnes or about 40 per cent of US maize production. An immediate, temporary suspension of that mandate would give some respite to the market and allow more of the crop to be channelled towards food and feed uses.”
It is our opinion that, with UN leader Graziano da Silva taking such a firm stand against US's pushing forward with previously agreed upon biofuel production standards, the Obama administration might have no further choice but to agree to revise its industrial policies.
Via: UN Leader Backs Up Request to Limit US Biofuel Production
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