Going Green

Monday, July 28, 2008

EU Bio-fuels Reaction and Food Price Impact

The European backlash to bio-fuels appears to be much greater than in the U.S. It may be due to the way foods are prepared there as opposed to U.S. methods. In the U.S., the volume of pre-pared foods is extremely high relative to most of the world. The high level of preparation places a greater percentage of the cost of those foods in the pre-preparation than in the food itself. Therefore a change in the cost of the basic commodity would have a smaller relative impact on the overall price. In the lesser developed world such as Africa, the impact is extremely high.

ENVIRONMENT: EU Backs Away From Agrofuels

By Julio Godoy
PARIS, Jul 28 (IPS) - EU ministers for energy and the environment have revised their targets for renewable energy in the face of abundant new evidence that increased production of agrofuels is partly responsible for the worldwide increase of food prices.

The EU has had a declared objective of...(complete article here).

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