Ethanol and the World Food Shortage

Over the years I’ve often observed and noted that the food crises in most countries are not due to lack of capability, but from political decisions. It turned out that the starvation in Ethiopia a few decades ago (we all saw ads featuring children with bloated bellies, but without explanation of causes) was due to Communists deliberately starving the people into submission. There is plenty of capacity to feed everyone in the world. Our political and economic systems prevent the poor and starving from obtaining their daily sustenance.

Tragically, we are today experiencing tremendous upheavals in food production, primarily due to our own political interventions. The intentions may be good on the part of legislators, but the ramifications have not been thought through, even though they appear obvious to many. The decision to convert huge portions of U.S. farmland from food production to ethanol/energy production is a vivid example of the law of unintended circumstances, as the following article outlines.

"Silent Famine" Sweeps Globe

WASHINGTON – From India to Africa to North Korea to Pakistan and even in New York City, higher grain prices, fertilizer shortages and rising energy costs are combining to spell hunger for millions in what is being characterized as a global "silent famine."

Global food prices, based on United Nations records, rose 35 percent in the last year, escalating a trend that began in 2002. Since then, prices have risen 65 percent.

Last year, according to the U.N. Food and Agriculture Organization's world food index, dairy prices rose nearly 80 percent and grain 42 percent.

"This is the new face of hunger," said Josetta Sheeran, director of the World Food Program, launching an appeal for an extra $500 million so it could continue supplying food aid to 73 million hungry people this year. "People are simply being priced out of food markets. ... We have never before had a situation where aggressive rises in food prices keep pricing our operations out of our reach."

The WFP launched a public appeal weeks ago because the price of the food it buys to feed some of the world's poorest people had risen by 55 percent since last June. By the time the appeal began last week, prices had risen a further 20 percent. That means WFP needs $700 million to bridge the gap between last year's budget and this year's prices. The numbers are expected to continue to rise.

The crisis is widespread and the result of numerous causes – a kind of "perfect storm" leading to panic in many places:

* In Thailand, farmers are sleeping in their fields because thieves are stealing rice, now worth $600 a ton, right out of the paddies.

* Four people were killed in Egypt in riots over subsidized flour that was being sold for profit on the black market.

* There have been food riots in Morocco, Senegal and Cameroon.

* Mexico's government is considering lifting a ban on genetically modified crops, to allow its farmers to compete with the United States.

* Argentina, Kazakhstan and China have imposed restrictions to limit grain exports and keep more of their food at home.

* Vietnam and India, both major rice exporters, have announced further restrictions on overseas sales.

* Violent food protests hit Burkina Faso in February.

* Protesters rallied in Indonesia recently, and media reported deaths by starvation.

* In the Philippines, fast-food chains were urged to cut rice portions to counter a surge in prices.

* Millions of people in India face starvation after a plague of rats overruns a region, as they do cyclically every 50 years.

* Officials in Bangladesh warn of an emerging "silent famine" that threatens to ravage the region.

According to some experts, the worst damage is being done by government mandates and subsidies for "biofuels" that supposedly reduce carbon dioxide emissions and fight climate change. Thirty percent of this year's U.S. grain harvest will go to ethanol distilleries. The European Union, meanwhile, has set a goal of 10 percent bio-fuels for all transportation needs by 2010."

A huge amount of the world's farmland is being diverted to feed cars, not people," writes Gwynne Dyer, a London-based independent journalist.

He notes that in six of the past seven years the human race has consumed more grain than it grew. World grain reserves last year were only 57 days, down from 180 days a decade ago.

One in four bushels of corn from this year's U.S. crop will be diverted to make ethanol, according to estimates."

Turning food into fuel for cars is a major mistake on many fronts," said Janet Larsen, director of research at the Earth Policy Institute, an environmental group based in Washington. "One, we're already seeing higher food prices in the American supermarket. Two, perhaps more serious from a global perspective, we're seeing higher food prices in developing countries where it's escalated as far as people rioting in the streets."

Palm oil is also at record prices because of biofuel demands. This has created shortages in Indonesia and Malaysia, where it is a staple.

Nevertheless, despite the recognition that the biofuels industry is adding to a global food crisis, the ethanol industry is popular in the U.S. where farmers enjoy subsidies for the corn crops.

Source: The "Silent Famine" Copyright 2008, WorldNet Daily