A horse is nothing but an engine powered by biofuel. There are many examples of such engines, especially in developing countries – donkey carts in Africa, camel carts in arid countries, water buffalo ploughing rice paddies and bullocks pulling carts in India – biofuel in action. E uropaBio is critical of a recently leaked and unofficial World Bank internal note, in which it was claimed that 75% of recent food price increases are the result of the increasing demand for biofuel. In fact, biofuel is part of bio-based economies, and this is nothing new – it has been so for most of recorded history. T he farming community cultivates significant area for non-food crops. More than 90% of these are grown in developing countries and are essential, labour-intensive contributors to rural economies:
- rubber trees – more than 8 million hectares;
- coffee – more than 10 million hectares;
- cotton – more than 35 million hectares;
- tobacco – more than 3,8 million hectares;
many others: tea, cocoa, sisal, hemp, and medicinal and ornamental plants. he world uses about 1 250 million hectares for crop production. Of this it uses 100 million hectares for non-food and non-animal feed crops, including all current production of biofuel feedstock, of which some 20 million hectares are grown for fuel. Seen in context, about 675 million hectares is planted with grain crops.
Food crops grown for animal feed comprisemore than 50% of maize and 90% of soya beans produced. But not all animals are produced for food – silkworms produce silk thread and sheep produce wool fibre. his holds important lessons. Using land for a non-food economy has been part of the agricultural economy through the ages. Crops – food or non-food – matter much less than the added value for the farmer. Building the bio-based economy of the 21st century requires productivity be increased, to avoid expanding farmland. There is enormous scope for this by speeding up science and technology and transfer of technology.
In its release, EuropaBio says the World Bank document downplays poor 2007 harvests, ignores increased wheat consumption in Asia, discounts US figures showing that wheat plantings increased in 2007, disregards the impact of increased energy costs on food prices, and overlooks short-term export bans and speculation. uropaBio refers to the poor 2007 rice harvest in South East Asia and catastrophic Australian wheat harvest, where over 60% of Australia’s bread wheat was lost. ‘Cereals are not interchangeable,’ EuropaBio’s release says. And it continues, ‘Wheat for bread cannot be replaced by other cereals – they cannot be used to make bread. The Australian harvest loss was a major blow to the international bread-wheat trade and led to vast price increases.
Then the cost of producing more than 2 billion tons of cereals per year is heavily affected by energy costs, by much more than the 15% suggested by the World Bank. The short-term export bans on rice in some major producer countries – to safeguard domestic markets – and also some speculation, may have worsened price spikes, while also sending a strong market signal to farmers. For the first time in over a decade, farmers in developing countries can sell produce at prices that encourage them to plant more and to invest in higher-quality seed, and other technology inputs that will increase yield and production and also cut input costs.
The World ignores these positive developments for hundreds of millions of developing farmers and therefore fails to point to effective policy responses for political decision-makers – to invest in making yield-increasing technology available to farmers, closing the supply gap. Blaming biofuel won’t resolve demand challenges. Farmers in the developing world should be supported and their access to modern farming technology promoted. Biofuel can contribute to the ever-increasing global energy need and enhance the world’s energy supply. Unverified reports shouldn’t undermine these efforts.’ |fw
