Biofuels are far from the dominant factor in the recent food price increases according to research published today (28th May) by New Energy Finance. While the report acknowledges that "increased biofuels production has been a meanigful driver of food price inflation" it points to increases in input costs "which have played a much larger role" in driving the prices.

New Energy Finance set about analyzing the food price increases following the outcry in the press after comments from Jean Zeigler, then UN Special Rapporteur on the Right to Food, in October last year when he said that it was "a crime against humanity to divert arable land to the production of crops which are then burned for biofuels". For the report New Energy Finance says it has analyzed food price increases between January 2004 and April 2008, breaking them down into their constituent drivers and has come to the conclusion that they simply aren't the dominant factor in food price hikes.

The report continued; "Furthermore, where biofuels have had significant impacts, this has been due to overly rapid application of support schemes and protectionism, rather than to the the impact of production on land use itself."

In concluding New Energy Finance suggests that, in the short term, it is vital for policy makers to intervene early and forcefully to protect the vulnerable from the worst impact of food price increases, while in th longer term  the price rises should be allowed trigger a growth in production in the agricultural sector.

The downside is very real, however, and the report stresses the need for the biofuel industry to act together to develop an understanding of the market and its role in providing renewable energy.

For further information contact Angus McCrone at New Energy Finance This e-mail address is being protected from spam bots, you need JavaScript enabled to view it