Biofuels lead to a new kind of foodcrisis?
The role of biofuel policies in the food-price hikes has become particularly controversial. The rapid increase in demand for and production of biofuels, particularly bioethanol from maize and sugarcane, has had a number of effects on grain supply-and-demand systems. Expanded production of ethanol from
maize, in particular, has increased total demand for maize and shifted land area away from production of maize for food and feed, stimulating increased prices for maize. Rising maize prices, in turn, haveaffected other grains. On the demand side, higher pr ices for maize have caused food consumers to shift from maize (which is still a significant staple food crop in much of the developing world) to rice and
wheat.
On the supply side, higher maize prices made maize more profitable to grow, causing some
farmers to shift from rice and wheat (and other crop) cultivation to maize cultivation. These demand- and
supply-side effects have tended to increase the price of rice and wheat and other crops
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