Tuesday March 25, 2008

Nestle warns biofuel boom threatens food supplies

This article belongs to the Global food crisis story arc.

channelnewsasia.com :

Growing use of such crops as wheat and corn to make biofuels is putting world food supplies in peril, the head of Nestle, the world's biggest food and beverage company, warned on Sunday [23 Mar 2008]. "If as predicted we look to use biofuels to satisfy 20% of the growing demand for oil products, there will be nothing left to eat," chairman and chief executive Peter Brabeck-Letmathe said. "To grant enormous subsidies for biofuel production is morally unacceptable and irresponsible."

While the competition is driving up the price of maize, soya and wheat, land for cultivation is becoming rare and water sources are also under threat, Brabeck said. His remarks echoed concerns raised by the United Nations' independent expert on the right to food, Jean Ziegler. Speaking at the UN General Assembly last year, Ziegler called for a five-year moratorium on all initiatives to develop biofuels in order to avert what he said might be "horrible" food shortages.

- Business leaders of major corporations are starting to come out and speak about the threat of biofuels to the global food supply. We've had Shell talk about this earlier on and now it's Nestle. Recently, William Doyle, the CEO of Potash Corporation, a $47 billion fertilizer and feed products company said : "If you had any major upset where you didn't have a crop in a major growing agricultural region this year, I believe you'd see famine." The point being, the food supply chain is so tight that we've had 17 years of record-breaking harvests every single year and yet the supply is only barely keeping up to demand. This has led to record low inventory levels. There is no margin of error in the entire system, and biofuels such as ethanol are only making it worse. If there is any major disruption of any kind, there will be shortages and famine right away.

See also :

1. Higher food prices to continue: World Bank
2. Why food costs more
3. Starving the people to feed the cars
4. Shell : Biofuels from food crops "morally inappropriate"

(2008-03-25 15:12:55 SGT) [Biz] Permalink Comments [1]

Most popular blog postings on lowem.log :

1. 2010 Nissan Leaf electric car specifications : 107hp, 24KWh lithium-ion batteries, 100-mile range
2. 2010 Honda CR-Z hybrid, 2010 Honda Fit/Jazz hybrid models confirmed
3. 2010 Honda Civic Hybrid preliminary specifications released
4. Singapore SIBOR rate falls to 0.69% in Jan 2009, lowest since Apr 2004
5. How to insert currency exchange rates into Google Spreadsheets
6. Singapore : Nuclear power not ruled out
7. Live spot gold price quotes chart on COMEX
8. 2010 Toyota Prius specifications released : 50 mpg, 1.8L, 134hp, Ni-MH, solar roof option

Featured articles on lowem.log :

1. 2010 Honda Civic Hybrid preliminary specifications released
2. 2010 Honda CR-Z hybrid, 2010 Honda Fit/Jazz hybrid models confirmed
3. 2010 Toyota Prius specifications released : 50 mpg, 1.8L, 134hp, Ni-MH, solar roof option
4. Honda, GS Yuasa JV to make lithium-ion batteries for 2010/2011 Honda Civic Hybrid
5. New efficient nanotech materials may boost enhanced geothermal power systems
6. NYMEX crude oil recovers from $32.40 low after 2.2 mbpd OPEC production cut announced
7. Singapore property market recovery seen as private home sales surge 52% in Jul 2009
8. Singapore SIBOR rate falls to 0.69% in Jan 2009, lowest since Apr 2004