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US attacked at food summit over biofuels

Julian Borger
London Guardian
Wednesday, June 4, 2008

The US came under intense criticism yesterday for its policy of promoting biofuels, which a senior UN official claimed was diverting food away from the hungry "to satisfy a thirst for fuel for vehicles".

The biofuel issue quickly emerged as the most contentious at a summit on the global food crisis being held in Rome. American claims that its subsidies for the production of corn ethanol were not playing a significant role in sharp increases in the price of food triggered an angry response during a closed-door meeting, and was contradicted by UN figures.

The issue will be debated at a round table session today, where an official of the food and agriculture organisation (FAO) predicted "sparks will fly".

Opening the summit the UN's secretary general, Ban Ki-moon, said that to meet global food demand, production would have to increase by 50% by 2030.

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There was general agreement that more food aid was needed in the short run, and more investment in agriculture in the long run, especially in Africa. But it was less clear who, if anyone, would pay the estimated annual cost of $30bn (£15bn) to meet the UN's goal.

The summit, called to address the sudden rise in global food prices and the consequent political instability, also exposed deep divisions over biofuels.

The summit's host Jacques Diouf, director general of the FAO, attacked western policies, targeting the US in particular. "Nobody understands how 11 to 12 billion dollar a year subsidies in 2006 and protective tariff polices have had the effect of diverting 100m tonnes of cereals from human consumption, mostly to satisfy a thirst for fuel for vehicles," Diouf said. He was referring to the annual cost of US subsidies to produce ethanol from corn.

Ed Schafer, the US agriculture secretary, responded to Diouf's speech, saying: "I thought his examples were a little critical and could have handled in a calmer and nicer manner." Schafer said the production of biofuels contributed less than 3% to the recent rapid rises in food prices but that assertion clashed with estimates by the International Monetary Fund, that they are responsible for 20-30% of the price rises.

Full article here.

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