Will the debate between biofuel supporters and food advocates finally cool down?
THE DEBATE between biofuel supporters and food advocates over pricing issues appears to have taken a sharp turn as food prices remain high despite falling energy and commodity prices. “I think the inflation pressure from both oil and corn prices has abated substantially in the second half of 2008, and that is pretty well expected to continue into 2009. I expect the debate to be a little cooler during this year,” says Scott Richman, senior vice president, commercial consulting lead, for Informa Economics, a commodity market analysis and management consulting firm based in the US. “We haven’t seen a change in food prices even though commodity and energy prices have dropped by half since their summer highs. In fact, one food manufacturer recently announced its profits rose during this time of economic turmoil due to price hikes on some of its most popular items,” says Jin Chon, spokesperson for Growth Energy, a coalition of American ethanol producers. “The scenario is certainly changing,
