Food price increases

One of the major benefits of pesticides is the protection of crop yields. According to the National Research Council (2000), removing pesticides from U.S. agriculture would cause crop production to decline as much as 50%, depending on the crop species. Moreover, farm exports would decrease by 50%, and consumer expenditures for food would increase— and be accompanied by an increase in inflation—as food prices increase. In the United States, we will spend 30-40% of our income on food as opposed to 8.7% currently. It was concluded that chemical insecticides should remain part of a larger toolbox of diverse pest management tactics in the foreseeable future. 

Some Facts about Food Prices and Recent Food Price Increases... 

The overall policy response to rising food prices should be multisectoral and should generally encompass improving grain price policies production, transport, and logistics safety nets to improve food security at the household level nutrition programs and management of the macroeconomic consequences of both the food price increase and the costs... 

History shows that world food production htis never seen immune from shortfalls. These food shortages E)ecome more likely as world population increases. As food prices increase because of higher energy costs, the needy will depend on diets made up of the cheapest, most-accessible food without regard for nutrition. 

Mueller, S.A., Anderson, J.E., WaUington, T.J., 2011. Impact of biofuel production and other supply and demand factors on food price increases in 2008. Biomass and Bioenergy 35,1623-1632. 

To this aim, a recent study conducted by the FAO (HLPE, 2011) showed how in less than one decade, the world biofuel production has increased five times, from less than 20 billion liters/year in 2001 to over 100 billion liters/year in 2011. The steepest rise in biofuel production occurred in 2007/2008, concomitantly with a sharp rise in food commodity prices (HLPE, 2011). However, as observed by Sims et al. (2010), estimations of the actual effect of biofuels on food price varies a lot some studies found on average, that the increase of food prices linked to the use of biofuels ranges from 15% to 25% of the total food price increase other studies on the contrary, conclude that there is no relationship whatsoever. Even more striking, some authors argue that biofuels are responsible for 75% of the increase observed in food prices (Chakrabortty, 2008). 

Biofuels have triggered a "food versus fuel debate." A few years ago turning farms into fuel factories appeared to be a good idea and both Europe and the United States supported it. For example, the American Congress mandated a fivefold increase in the use of biofuels. Today these views and policies are being reconsidered because they drive up food prices, which in turn contribute to starvation. 

All that glitters is not green - biofuel in the Netherlands addresses the controversy of increasing food prices due to the increased use of biofuels. The press release formulated a strong recommendation. 

The use of bio-based raw materials contributes to an increase in food prices, due to competition with industrial applications. Thus, in 2006, a 20% production of biofuels in the United States led to a 53% increase in the price of com, a 30.5% increase in the price of flour and an 11% increase in the price of soya. This use for non-food purposes can lead to famine in poorer countries [COE 07], and poses ethical problems. 

To explore the full picture with respect to sustainability, social factors have to be taken into account as well. At present, the effect of the increased use of renewable raw materials on the availability and price of food is a subject of intense debate. It is not yet clear which factors are responsible for the recent volatility in food prices. While the World Bank estimates the influence of biofuels at 75%, the FAO also points to other factors that contribute to the rise in prices. These include changed nutritional habits in many emerging countries, poor harvests and increased fuel prices, which account for about 30% of production costs. 

Until now, biofuels have had only small effects on world food prices but, although it is smaller than the increase in food and feed, biofuel demand is the largest source of new demand in recent decades and a strong factor underpinning the upward shift in agriculture commodity prices. The medium-term impact of biofuels on crop markets, at least until 2017, however, should not be overestimated, having had an influence on cereal and oilseed prices of 3% to, at most, 10% [13]. 

The current economic situation favors increasing use of low erucic acid rapeseed oil by consumers facing higher food prices and by food manufacturers. It is reasonable to forecast that the Canadian consumption of low erucic acid rapeseed oil will continue to rise. World prices favor the development of technology to process local products and pressures on the food budget encourage consumers to seek the best buys in the supermarket. 

Ajanovic, A. (2011). Biofuels versus food production does biofuels production increase food prices Energy, 36, 2070—2076. 

---