IMF Warns About Impact of Biofuels on Food Prices

(Thomson Financial) - The IMF warned that an increasing global reliance on grain as a source of fuel could drive up food prices in poor countries.

'The use of food as a source of fuel may have serious implications for the demand for food if the expansion of biofuels continues,' the International Monetary Fund said in its twice-yearly report on the world economy. . . . more

Comments

[One word:]

Duh

[Jeff Baker]

95 Percent of 2,200 Survey Participants Blame RISE IN OIL PRICES for Increased Cost of Food ( Not Bio-Fuels )

By Chris Kirk
Takeaways

72 percent of adults in the survey believe higher oil prices led to higher food costs.

Only 35% of the adults in the survey feel ethanol would contribute to higher food costs.

78 percent believe use of ethanol would reduce the country's dependence on oil.

[Ross]

What do economists say? The ones who can take a look at the actual numbers and in many cases, discriminate between possible correlative factors?

And the IMF's credibility is in the toilet. My suspicion is that this announcement is simple pandering to those who want the IMF to develop a reputation of caring for the countries whose economies it destroys.

[Term Papers]

The report questioned wheter it was advantageous for rich countries to turn to biofuel production in the face of rising oil prices.