Another damning report against biofuels

Respected World Bank economist, Don Mitchell, has written an internal report that places the blame for increasing world food prices squarely on the shoulders of the United Kingdom and the United States and their consumption of biofuels.

The report, which has not been published yet, is a direct contradiction to claims by the U.S. and by our own Environment Minister, John Baird, who claim that biofuels have only caused food prices to rise by 3 percent or less.

The consumption of biofuels has a direct, powerful impact on the cost of living. Because of this, the World Bank estimates that 100 million people worldwide has slipped below the poverty line as the result of skyrocketing food prices.

According to the study, between 2002 and February, 2008:

• Food basket prices have risen 140 percent
• increases in energy and fertilizer account for 15 percent of that increase
• Biofuels account for a 75 percent increase in food prices.

It goes on to argue that rising food prices are not a result of the economic growth in China and India, and that successive droughts in Australia haven't had much of an impact either.

The report was leaked by the U.K. Guardian newspaper, who suggest that the report has been kept in-house in order to avoid embarrassing U.S. President George Bush at a time when the leaders of the G8 are preparing to meet in Japan. Much of their time will be spent discussing high fuel and food prices.