Isn the use of crops for biofuels forcing up the price of food?
Any additional demand for any crop could put up prices. Recent rises in raw material (cereals and oilseeds) prices have been the result of poor weather (like prolonged drought in Australia and flooding in the UK last summer), poor harvests and changing diets in emerging economies like China and India. Also remember that the price of raw material represents only a tiny proportion of the total cost of most food products. For example, the cost of cereals makes up only 1 – 5% of the total cost of bread.
