LETTER: Bio-fuels, not population, driving global demand for food

This is an amazing article about the current global demand for food.  The author is Jayati Ghosh, a Professor of Economics and currently also Chairperson at the Centre for Economic Studies and Planning, School of Social Sciences, at the Jawaharlal Nehru University, in New Delhi, India.  This appeared in The Guardian (UK) today, 8/2/2011.  It contains some remarkable statistics and the analysis is really quite surprising.

EDITOR: Excerpts:

…As it happens, FAO food balance sheets show that both direct and indirect demand for grain in China and India barely increased between 2000 and 2007, and cereal imports were actually lower. Why this has been happening, and why the economic growth has not translated into more aggregate demand for grain, is obviously a fascinating question on its own and one that deserves more study. It is likely that the worsening income distribution in both countries may have had something to do with it, so that increased demand from high-income groups is counterbalanced by reduced demand from poorer sections. But this needs to be explored further…

The report from the FAO has a convincing response to that as well: it notes that the biofuel boom has had a major impact on the evolution of world food demand for cereals and vegetable oils. According to page 32 of the report “there is a real acceleration of non-feed uses boosted by biofuel development. Excluding use for biofuel, the growth rate for non-feed use is stable compared with the 1990s and markedly inferior to its historical performance. Without biofuel, the growth rate of world cereal consumption is equal to 1.3% compared with 1.8% for biofuel”.

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