Is biodiesel pushing up food prices?
No. Biodiesel has no influence on food prices. The production of biodiesel is based exclusively on oil-bearing plants. This means there is no competition between food and energy, as is often wrongly asserted. Of the 400 million tonnes of oilseeds harvested annually, 83.5% (334 million tonnes) goes to the food and animal-food industries, and 14% (56 million tonnes) to the oleochemicals industry. Only 2.5% (10 million tonnes) is currently processed into biodiesel. This 2.5% can hardly have triggered the increases in food prices. The likely major cause ispopulation growth and the changing eating habits of people in newly industrializing countries, such as India and China. These lead to increasing demand for meat and dairy products, thus driving up prices.
