How the rich starved the world

World cereal stocks are at an all-time low, food-aid programmes have run out of money and millions f

The irony is extraordinary. At a time when world leaders are expressing grave concern about diminishing food stocks and a coming global food crisis, our government brings into force measures to increase the use of biofuels - a policy that will further increase food prices, and further worsen the plight of the world's poor.

What biofuels do is undeniable: they take food out of the mouths of starving people and divert them to be burned as fuel in the car engines of the world's rich consumers. This is, in the words of the United Nations special rapporteur on the right to food, Jean Ziegler, nothing less than a "crime against humanity". It is a crime the UK government seems determined to play its part in abetting. The Renewable Transport Fuel Obligation (RTFO), introduced on 15 April, mandates petrol retailers to mix 2.5 per cent biofuels into fuel sold to motorists. This will rise to 5.75 per cent by 2010, in line with European Union policy.

The message could not have been clearer if the Prime Min ister, Gordon Brown, had personally put a torch to a pyre of corn and rice in Parliament Square: even as you take to the streets to protest your empty bellies and hungry children, we will burn your food in our cars. The UK is not uniquely implicated in this scandal: the EU, the United States, India, Brazil and China all have targets to increase biofuels use. But a look at the raw data confirms today's dire situation. According to the World Bank, global maize production increased by 51 million tonnes between 2004 and 2007. During that time, biofuels use in the US alone (mostly ethanol) rose by 50 million tonnes, soaking up almost the entire global increase.

Next year, the use of US corn for ethanol is forecast to rise to 114 million tonnes - nearly a third of the whole projected US crop. American cars now burn enough corn to cover all the import needs of the 82 nations classed by the UN's Food and Agriculture Organisation (FAO) as "low-income food-deficit countries". There could scarcely be a better way to starve the poor.

The threat posed by biofuels affects all of us. Global grain stockpiles - on which all of humanity depends - are now perilously depleted. Cereal stocks are at their lowest level for 25 years, according to the FAO. The world has consumed more grain than it has produced for seven of the past eight years, and supplies, at roughly only 54 days of consumption, are the lowest on record.

The president of the World Bank, Robert Zoellick, has already warned that 100 million people could be pushed deeper into poverty because of food price rises caused directly by this imbalance between supply and demand. Even consumers in rich countries are suffering. We now pay higher prices for our food in order to subsidise the biofuels industry, thanks to measures such as the renewable fuels directive.

This is not just a short-term price blip, but the beginnings of a major structural change in the world food market. Population pressure - still something of a taboo subject - is also certainly playing a part. With the world population growing by 78 million a year, and expected to reach nine billion by the middle of the century, there are simply many more mouths to feed.

In addition, rapid economic growth in India and China has created tens of millions of new middle-class consumers, all demanding western-style diets high in meat and dairy products, thereby vastly increasing the quantity of grain required for livestock production.

Weather plays a major role, too: the FAO's latest food situation brief reports that, in 2007, "unfavourable climatic conditions devastated crops in Australia and reduced harvests in many other countries, particularly in Europe", while Southern Africa and the western United States have been hit hard by severe drought. Rising oil prices also increase the cost of food, as fossil fuels are important throughout the agricultural process, from tractor diesel to fertiliser production.

Inconsistency

The most important structural change, however, is the increasing interlinking of world energy and food markets. Once, food was just for people. Now rising demand for transport fuel - particularly in rich countries - is sucking supply away from the world food market and increasing the upward pressure on prices. In the words of Josette Sheeran, executive director of the UN World Food Programme (WFP): "We are seeing food in many places in the world priced at fuel levels," with increasing quantities of food "being bought by energy markets" for biofuels.

Rising oil prices feed back into the process. With food and fuel markets intertwined, increases in the price of oil are shadowed by increases in the price of grain. The real-world result from this structural shift may be that hundreds of thousands of people starve in the next few years - unless policies promoting biofuels are urgently reversed.

This is not to suggest that government targets on biofuels are driven by some kind of malicious desire to starve the world's poor. Indeed, both Brown and his Chancellor, Alistair Darling, have expressed concern about the food supply crisis and the role of biofuels in causing it. But for these two political leaders to voice their concerns while allowing the increased use of biofuels in the UK to be pushed forward - all in the same week - is nothing short of bizarre.

As Oxfam's Robert Bailey puts it: "This inconsistency at the highest levels simply beggars belief." The aid agency calculates that the RTFO represents a £500m annual subsidy from motorists and taxpayers to the biofuels industry - more than double the amount the WFP is urgently seeking from donor countries to try to mitigate the impact of food price rises on the world's poor.

The EU, meanwhile, persists in the erroneous belief that biofuels can help reduce greenhouse-gas emissions. The main reason for its speedy introduction of the replacement fuel initiative was as a sop to motor manufacturers who were lobbying hard against proposed higher fuel economy standards. With biofuels, the EU hoped, it could cave in to the car industry while still getting reduction in emissions.

Yet recent research suggests otherwise: two major studies published in Science magazine in February showed clearly that once the agricultural displacement effects of the new fuels on rainforests, peatlands and grasslands are taken into account, emissions are many times worse than from conventional mineral petrol. In other words, it would be better for the climate if we just went back to fossil fuels. Biofuels are not a "necessary but painful" way of saving the climate; they are a calamitous mistake by almost every criterion, whether social, ethical or environmental.

Reversing the damage

The industry claims that "second-generation" biofuels, using by-products such as corn stalks and woodchip as a feedstock, will be able to redress the balance. But if this technological advance is achieved (and that is by no means certain) it could usher in an even worse scenario: the annihilation of the world's forests. If all plant life was seen as potentially convertible for transport fuel, there would be nothing to stop what was left of the planet's biosphere from being strip-mined to keep rich motorists on the road. There is no simple solution. Much of the increased biofuel demand comes from the US, where Democratic and Republican politicians alike have talked themselves into a dead-end search for "energy security" - with US-grown corn top of the list.

But the UK and the EU can reverse some of the damage by immediately ditching their own biofuels policies and providing vital aid funding, principally through the WFP, to help prevent widespread starvation in the short term. Politicians need to realise that there is no such thing as "sustainable biofuels", either now or in the future. As for investors, they need to realise that pouring money into biofuels is a bad bet: subsidies will be quickly withdrawn when policymakers face up to the reality of their ghastly error.

In the meantime, millions face starvation and death from increasing hunger and malnutrition. There is no time to lose.

2008: the year of food riots

Egypt Thousands of demonstrators in Mahalla el-Kobra loot shops and throw bricks at police during protests at rising food prices and low salaries, as part of nationwide strike

Haiti At least four people killed in the southern city of Les Cayes after food prices rise 50 per cent in the past year

Côte d’Ivoire Police injure more than ten protesters as several hundred demonstrators demand government action to curb food prices

Cameroon Riots last four days and result in at least 40 deaths. Unrest is due to high fuel and food prices. Worst riots in country for 15 years

Mozambique At least four people killed and 100 injured following fuel price rises

Senegal Violent demonstrations in Dakar as prices of rice, milk and oil soar. Senegal imports almost all its food

Yemen Five days of rioting and a hundred arrests after the price of wheat doubled over two months. Protesters set up roadblocks in Sana’a and Aden

...and in Mauritania, Bolivia, Indonesia, Mexico, India, Burkina Faso, and Uzbekistan

Research by Jax Jacobsen

182 comments

Norman Chap's picture

You´re missing the influence of increasing oil/petrol prices (now at more than $100 the barrel) on food production. A lot of oil is needed to raise crops (machinery, fertilizers and transportation) and these costs boost the price of every kind of food, not only grains. The problem is specifically burning corn and maybe soy bean oil, but there are plenty of other biodiesel sources that won´t affect food prices so much, like palm oil and even biodiesel from algae.

Catriona's picture

FAO Brute:
"unregulated free market economies are the best and historically proven way to elevate the human condition."

Try telling that to the Irish.
Be prepared for them to point you to the irrefutable evidence of the 1850's.
Y'know, the decade which *shows* what your chosen system brings - lots of lovely Profits for those who own the system (yay!), *mass starvation* for everyone else.

So NO THANK-YOU.

I'd also be interested to see whether you advocate the corollary of ‘unregulated free markets’ in the light of the current Credit crisis - which would be bankruptcy for the bonus-chasing parasites who dropped the rest of us into this mess in the first place - and tremendous loss of funds for the banks' shareholders.

But I'm willing to bet that, like the oligarchical collectivists whose lies you are such a good duckspeaker of, you *insist* that the rest of us ordinary taxpayers be forced to bail out the ‘Masters of the Universe’ on Wall Street.

VC's picture

Brute; there has been no substantial global warming...in fact, there has been no global waring for the last 10 years and the lastest climate data suggests there will be no warming for the 10 years. In fact, we maybe heading for a 30 period of cooling.

When the tsunami hit and the MSM failed to do what it does 99.9999%of the time, was a complicit action which increased the impact of the NWO attack. I was posting this on BBC Radio 4 Today forums and now I`m putting out the same message, that the Burma cyclone was another NWO attack which has destroyed a major exported of rice....of which the consequences will be truely shocking.

Did your MONSTER president Bush announce the ending of biofuel subsidies? Of course not. Amerika is sinking and it intends to take the developing world down with them.

Brute's picture

Ah, Cassandra......(beautiful name by the way), the operative word in that sentence was "relatively"........and no, I personally am against “bailing out” anyone or any institution that does not manage their assets prudently.

Some people allow themselves to be exploited; some do not; (see the American Revolution, the French Revolution, the Bolshevik Revolution or simply research the origins of any Labor Union).

I don’t know which side of the Atlantic you are writing from, but in The United States the residential real estate “crisis” was caused by speculation and greed primarily from overseas investors and unrealistic consumers looking to make a quick windfall. In addition, 1 of every 197 homes in the U.S. is either in foreclosure or in danger of being foreclosed upon, which amounts to a little over ½ of 1 percent; hardly a crisis. Housing foreclosures are occurring because people were LIVING BEYOND THEIR MEANS. If an annual household income amounts to $75,000 per year, that “household” has no business purchasing an $800,000 dollar home. It doesn’t take a financial genius to read the fine print and realize that. These people made poor choices, unwise investments……I chose not to purchase a home that I knew I could not afford and, remarkably, I still have a roof over my head. Purchasing anything is GAMBLING; playing the stock market is GAMBLING; Investing is GAMBLING; there is no such thing as a sure thing.

There is also a positive side to this downturn in that the housing values were inflated and are now readjusting to more reasonable rates bringing would be first time home owners in reach of purchasing a home.

Look to the Democratic Party and Liberal politicians, (in The United States), as advocates for “bailing out” the opportunists and spendthrifts, (Chuck Schumer-Democrat-NY, Hillary Rodham Clinton-Democrat-NY, Barak Hussein Obama-Democrat-Illinios, Ted “The Swimmer” Kennedy-Democrat-Massachusetts) not Conservatives. Personally, my wife and I have not been “victims” of a “credit crisis”; we’ve lived within our means, kept our payments up to date, kept our credit scores high and had no problem at all securing a low interest loan recently. We are, (as are millions of responsible Americans), a safe credit risk, (and pay a #$@%load of taxes to offset these parasites thanks to Liberal politicians).

Investors Find Silver Lining in Real Estate Market

http://www.abcnews.go.com/Business/story?id=3807771&page=1

Back to the point; Liberal politicians, (Al Gore), in league with and in an effort to appease the environmentalist lobby, advocated and mandated transferring the production of food into fuel in an effort to combat the non-existent hoax referred to as Global Warming. People are starving and paying higher prices for food, (and numerous other essentials), because of this fraudulent initiative.

Grow up, put away the Birkenstocks, protest signs and the love beads and get a job; move out of your parent’s basement, pay your bills, quit whining and conduct yourself like a responsible adult and you’ll be fine.

taghioff.info's picture

@Antileft

You seemed to be unable to engage with my arguments, and have fallen to insulting me.

Again, I feel the need to address your false assumptions. I am in many ways a fan of capitalism, but given a choice between yet more wealth and avoiding genocide, I have to take a step back.

Marx was also a fan of capitalism in many ways, his main objection was that it might destroy itself, and a lot of people in the process.

"It's typical- a middle class white boy goes to asia and, enjoying a lifestyle thousands of dollars more expensive than the locals, complains about "how unsustainable and how unfair it all is".

I am acutely aware of how lucky I am, which is why I have spent a lot of my money and a lot of my time trying to understand how to avoid the above scenario.

Actually I accept your charge, but am not willing or able to live like a local, and certainly can't inflict that on my family. I am not morally perfect, but I am part of a movement that is working to try and address these issues.

"You know, marx also said that capitalism couldnt continue to produce indefinitely. That was over a century ago. Yes, some resources are finite, but most are effectively infinite as long as we dont simply breed ourselves into oblivion, which isnt actually happening because the world is developing and the first world is beginning to shrink."

It only takes a few limiting resources to shape the geo-political and economic world, oil and water, and now food being prime candidates. Ignoring that makes you an enemy of both capitalism and the poor.

"suppose your solution is for us all to go back to the horse, is it? What other solution is there?"

If you really are interested in reading about proposed solutions then take a look here. I am not saying for sure it will work, but I am pretty sure this stuff is worth thinking about, and debating:

http://taghioff.info/dant/?p=66

Apologies to those that have seen me post this link endlessly, but it seems that this stuff just doesn't get through without repetition.

So, antileft, are you willing to do some reading and come back with something other than personal attacks?

VC's picture

This link puts the NWO attack in perspective. There is talk that the US military are preparing for food ratining.

http://www.rumormillnews.com/cig-bin/forum.cgi?read=123994

BritishAirman's picture

Some good responses to Mr. Lynas's article.

Whilst all countries cannot follow Brazil, Brazil itself has an excellent model of growing sugar-cane plantations for the extraction of biofuels. This is not the same as is being pursued in South East Asia, which like the article highlights, is using vast acres of land that would otherwise have been used for the growing of grain, such as wheat.

Economics suggests that two outcomes are likely. The first, to which the world is witnessing, is soaring prices because the supply cannot meet the demand. For market equilibrium to be reached and for price to be determined, price is the only mechanism by which the market will automatically correct itself. For the millions of poor people, in countries such as Indonesia, this is no consolation as they will be driven to hunger and starvation.

Secondly, and, saliently, what could happen is a process of rationing taking effect. Rationing seems the only logical approach in being able to help those that would naturally die from starvation. The process would, as a result, likely cap prices allowing everyone access to basic food commodities. Whilst rationing might sound drastic, it is the only way, economically, the world will stave off a humanitarian catastrophe. Such a process might well feed into western countries the longer the anguish goes on, because, as mentioned, there is only so much cost pressure big companies in the west can absorb from their own profits before having to pass it onto the consumer.

Historically, the process of rationing and capping of prices, has not been seen in the shores since the days of the Second World War when, rents were capped – the so called ‘price ceilings’.

There is an interesting article on my web log, by the Economist, archived and entitled: ‘food and the poor, global food shortages’ which you might like to read.

Many thanks,

http://www.markatscotland.blogspot.com

taghioff.info's picture

@antileft

On the off chance you are about to become an activist, there is lots of information here about what you can do:

The Growing Global Food Crisis - What You Can Do
http://us.oneworld.net/section/us/alerts/hunger
As rising food prices and shortages sound alarm bells around the world, OneWorld offers an overview of what different countries are facing and how you can help.

Spread the love ;-)

denisbork615's picture

between all the name calling [distracting from the topic] i wont get into who would want to do that , but will simply say the cure for this food for fuel lies in growing algae

russion research has proven most fossil fuel isnt fossil it came from algae [algae is so simple to grow [where 10 tons per acre is the return for grain ,algae returns 1000 tons] ,[in the process capturing a heck of a lot more co2 than hundreds of trees]

there are trials in process [as searches will reveal, the algie is grown in circulating water tumbling in stamped plastic bladders [no water is lost] and tons of algae grows

we could use sewrage water turning tons of sustainable fossil fuels out [and never have to turn another food stuff into energy [untill humans have consumed it that is ]

no smell problems either [the raw sewrage could even first leach its fumes into our gas lines [the algae then piped [pumped] to the refineries [it being a slurry [no trucks need to drive it from the farm to the ethinol plant [to the servo]

so you leaders put your carben tax credits into algae bio feul production ,but go ahead you blogging destractors ,scene is all yours

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