September 18, 2007 in Trade Observatory

New Report Cites Need for Sustainable Production and Fair Trading Systems

Minneapolis – While ethanol production will likely not cause people to go hungry in other countries, structural changes in global agriculture and trade systems are badly needed, according to a new paper by the Institute for Agriculture and Trade Policy (IATP). “Food versus Fuel in the : Can Both Win in the Era of Ethanol,” by IATP’s Mark Muller, Tammy Yelden and Heather Schoonover, can be read at: www.iatp.org.

The report found that only a small amount of corn, the primary feedstock for ethanol production, is exported to undernourished countries. And while a global rise in the price of corn and other farm commodities related to biofuel production may affect food prices, it also provides a better chance for subsistence farmers around the world who have been devastated by depressed global commodity prices to make a living.

“Historically, the has dumped under-priced corn and other commodities into the international market and done enormous damage to the viability of farmers in countries like Mexico,” said Muller, director of IATP’s Environment and Agriculture program. “Biofuels have driven a major shift in the agriculture economy toward domestic use, and the result has actually been an overall grain demand that better matches supply, and a return to fair prices for farmers in the and around the world.”

The paper concludes, however, that to ensure the U.S.-based biofuel sector does not aggravate hunger in the future, several steps need to be taken, including the following: 1) the U.S. must shift production away from an almost exclusively corn-based ethanol system, toward more sustainable, perennial energy crops that enhance the health of soil and water resources for future agricultural production; 2) the emerging global trading system for biofuels must support local economies and local food sovereignty – the ability of countries to feed themselves.

While the paper concludes that a well-managed U.S.-based biofuels system could potentially improve international food security, the same conclusion cannot be extrapolated to biofuels production in other parts of the world. There are serious global concerns about the impact of biofuels production in countries facing high levels of food insecurity, and demand for biofuels from wealthy countries could further impair food production in those countries.

“If we are serious about addressing hunger and poverty, we must address the larger, structural issues that underlie our food and farm systems,” said Muller. These larger structural issues include policies that encourage agricultural export dumping and low prices for farmers, industrial farm practices that deplete the soil and water resources, and an emphasis on artificially cheap, unhealthy food. The report found that with appropriate policies, renewable fuels could play a role in addressing these structural issues.

To read the full report, go to www.iatp.org  The Institute for Agriculture and Trade Policy works globally to promote resilient family farms, healthy communities and ecosystems through research and education, science and technology, and advocacy. http://www.iatp.org/.

macs2005

Replying to [macs2005]:
The Corn biofuel started out more as a 'test" a number of years ago, because there is a lot of corn in the US.... Some large companies got involved and with the US wanting to become more energy independent, the fairy-god-senators of certain states managed to pork-barrell in some subsidies for corn-ethanol production..

One of those weird US things (politics wise).... Common theory now is that there are better crops to be using (better ratio of fuel/plant) to produce bio-fuels.... I can't remember the name of the plant that is now being investigated seriously, but it is some kind of "weed" that is MUCH more efficiently converted to a bio-fuel. I think BP in the US are doing the major trials of this one but am not certain of that.

It is quite posible that the subsidy for the corn-ethanol will be largely cut in the next year or so, making the practice of turning corn into a bio-fuel less attractive, which will put corn back on the food market.

But I really wish people would not blame the US alone for this... Italians had a one day "strike" a few weeks ago to protest that wheat farmers in Italy (and other European countries) were selling larger and larger amounts of their wheat to bio-fuel makers.... The cost of pasta has risen something like 80% in the last year in Italy, mainly due to the decrease in the amount of wheat grown for food production.

Replying to [Foow]:


Yes, not a weed but an ancient plant that flourished almost 3,500 years ago in Europe, known as camelina, has been found to be a promising new source of biofuel.  I read that if planted on a large scale on marginal farmland, it could provide a significant source of clean energy. This plant can grow in arid conditions, can produce more oil from its seeds for a lower price and does not require the excessive use of fertilizers, pesticides and herbicides.  Besides, camelina seeds also contain high levels of omega-3 fatty acids, believed to reduce high blood pressure, cholesterol and heart disease. Once the seeds are crushed for their oil, the leftover meal could be used to feed cattle, chicken and fish.  I think it continues to be under examination.


macs2005

 

 

Replying to [macs2005]: I think it is a zero sum game. In order to reduce our reliance on petroleum, we are resorting to solutions in agriculture which is hampering food crop cultivation. Resources are finite and we have to live with it.

Dear Ganapathie,

You raised a good point.  Why use food crops as biofuel raw material at all?  And Foow is right that it's not only the US that should get all the blame as there are other culprits too. 

The discovery of the camelina plant sounds promising though.  Let's hope they don't resort to genetic modifications in fast breeding the plant when the examination proves the feasibility of converting it to biofuel.

macs2005

Replying to [macs2005]:
Slightly weird update..... There is a research group at some University in the US that I saw a short 15 minute TV spot about... They are working on producing a biofuel using lawn clippings and tree cuttings from suburban areas..... For those in other countries who don;t have the same thing, in the US HUGE numbers of people have a lawn in their front and back yards, which generally gets mowed every week or two. That is a HUGE amount of potential fuel.

The major problem is that though all palnt life can produce ethanol, many of these plabts bind their carbs in hard to convert forms... (corn has a fairly easy carb to convert to ethanol).

The researchers looked at ways to increase the efficiency and have actually come up with a new microbe (didn't hear in the story if it a bacteria or a yeast) that they have genetically altered to enable the microbe to much more efficiently convert the carbs in the lawn clippings into ethanol..... They have a single test plant now set up and the early results are very very promising..... More test-beds are to be built over the next couple of years with slight differences to see if the conversion ration can be further increased..

The figures being thrown around (no idea of the methodology of calculation) is that up to 30% of the US Car Fuel needs could be met by this method withing 15 years,,,,,,