Apr/080
Food Crisis Starts Eclipsing Climate Change Worries
Gore Ducks, as a Backlash Builds Against Biofuels
By JOSH GERSTEIN,
Staff Reporter of the Sun
April 25, 2008
[source: http://www.nysun.com/news/food-crisis-eclipsing-climate-change ]
The campaign against climate change could be set back by the global food crisis, as foreign populations turn against measures to use foodstuffs as substitutes for fossil fuels.
With prices for rice, wheat, and corn soaring, food-related unrest has broken out in places such as Haiti, Indonesia, and Afghanistan. Several countries have blocked the export of grain. There is even talk that governments could fall if they cannot bring food costs down.
One factor being blamed for the price hikes is the use of government subsidies to promote the use of corn for ethanol production. An estimated 30% of America’s corn crop now goes to fuel, not food.
“I don’t think anybody knows precisely how much ethanol contributes to the run-up in food prices, but the contribution is clearly substantial,” a professor of applied economics and law at the University of Minnesota, C. Ford Runge, said. A study by a Washington think tank, the International Food Policy Research Institute, indicated that between a quarter and a third of the recent hike in commodities prices is attributable to biofuels.
Last year, Mr. Runge and a colleague, Benjamin Senauer, wrote an article in Foreign Affairs, “How Biofuels Could Starve the Poor.”
“We were criticized for being alarmist at the time,” Mr. Runge said. “I think our views, looking back a year, were probably too conservative.”
Ethanol was initially promoted as a vehicle for America to cut back on foreign oil. In recent years, biofuels have also been touted as a way to fight climate change, but the food crisis does not augur well for ethanol’s prospects.
“It takes around 400 pounds of corn to make 25 gallons of ethanol,” Mr. Senauer, also an applied economics professor at Minnesota, said. “It’s not going to be a very good diet but that’s roughly enough to keep an adult person alive for a year.”
Mr. Senauer said climate change advocates, such as Vice President Gore, need to distance themselves from ethanol to avoid tarnishing the effort against global warming. “Crop-based biofuels are not part of the solution. They, in fact, add to the problem. Whether Al Gore has caught up with that, somebody ought to ask him,” the professor said. “There are lots of solutions, real solutions to climate change. We need to get to those.”
Mr. Gore was not available for an interview yesterday on the food crisis, according to his spokeswoman. A spokesman for Mr. Gore’s public campaign to address climate change, the Alliance for Climate Protection, declined to comment for this article.
However, the scientist who shared the Nobel Peace Prize with Mr. Gore, Rajendra Pachauri of the United Nations’s Intergovernmental Panel of Climate Change, has warned that climate campaigners are unwise to promote biofuels in a way that risks food supplies. “We should be very, very careful about coming up with biofuel solutions that have major impact on production of food grains and may have an implication for overall food security,” Mr. Pachauri told reporters last month, according to Reuters. “Questions do arise about what is being done in North America, for instance, to convert corn into sugar then into biofuels, into ethanol.”
In an interview last year, Mr. Gore expressed his support for corn-based ethanol, but endorsed moving to what he called a “third generation” of so-called cellulosic ethanol production, which is still in laboratory research. “It doesn’t compete with food crops, so it doesn’t put pressure on food prices,” the former vice president told Popular Mechanics magazine.
A Harvard professor of environmental studies who has advised Mr. Gore, Michael McElroy, warned in a November-December 2006 article in Harvard Magazine that “the production of ethanol from either corn or sugar cane presents a new dilemma: whether the feedstock should be devoted to food or fuel. With increasing use of corn and sugar cane for fuel, a rise in related food prices would seem inevitable.” The article, “The Ethanol Illusion” went so far as to praise Senator McCain for summing up the corn-ethanol energy initiative launched in the United States in 2003 as “highway robbery perpetrated on the American public by Congress.”
In Britain, some hunger-relief and environmental groups have turned sharply against biofuels. “Setting mandatory targets for biofuels before we are aware of their full impact is madness,” Philip Bloomer of Oxfam told the BBC.
Biofuel advocates say they are being made a bogeyman for a food crisis that has much more to do with record oil prices, surging demand in the developing world, and unusual weather patterns. “The people who seek to solely blame ethanol for the food crisis and the rising price of food that we see across the globe are taking a terribly simplistic look at this very complex issue,” Matthew Hartwig of the Renewable Fuels Association said.
Mr. Hartwig said oil companies and food manufacturers are behind the attempt to undercut ethanol. “There is a concerted misinformation campaign being put out there by those people who are threatened by ethanol’s growing prominence in the marketplace,” he said.
The most obvious impact the food crisis has had in America, aside from higher prices, is the imposition of rationing at some warehouse stores to deal with a spike in demand for large quantities of rice, oil, and flour. The CEO of Costco Wholesale Corp., James Sinegal, is blaming press hype for the buying limits, which were first reported Monday in The New York Sun.
“If it hadn’t been picked up and become so prominent in the news, I doubt that we would have had the problems that we’re having in trying to limit it at this point,” Mr. Sinegal told Fox News Thursday. “I mean, I can’t believe the amount of attention that is being paid to this.”
The Sun’s article, which came as food riots were reported abroad, circulated quickly on the Internet, was republished in newspapers as far away as India, and prompted local and network television stories.
Speaking in Kansas City, Mo., yesterday, the federal agriculture secretary, Edward Schafer, blamed emotion for the spurt of rice buying at warehouse stores. “We don’t see any evidence of the lack of availability of rice. There are no supply issues,” he told reporters, according to Reuters.
Apr/080
Global Food Riots
April 24, 2008, 4:00 a.m.
By Deroy Murdock
[source: http://article.nationalreview.com/print/?q=OTBiOTY2ZTAyMWQwYTJkMDIwMmFiZGY4YzAxM2VkNjc ]
To draw a phrase from the late, great William F. Buckley Jr.’s words as he founded National Review, someone must stand athwart the federal ethanol program yelling, “Stop!” The emergency brake should be pulled — NOW — before ethanol wreaks further havoc.
Poor Haitians rioted last week outside Port-au-Prince’s presidential palace, forcing Prime Minister Jacques Edouard Alexis’s April 12 ouster. Haitians are sick and tired of food prices that are 40 percent higher than last summer’s. Some have resorted to eating cookies made of salt, vegetable oil, and dirt. That’s right: Dirt cookies.
Developing-world denizens are taking it to the streets with growling stomachs. In Bob Marley’s words, “A hungry man is an angry man.”
Climbing corn prices have ignited Mexican tortilla riots. Enraged citizens in Egypt and Pakistan — potential Muslim powder kegs — have also violently protested premium prices for basic staples. Similar instability has erupted from the Ivory Coast to Indonesia. Resurrecting the defeated “import substitution” model of yore, India and Vietnam are among the nations that lately have prohibited grain exports and imposed government price controls. Kazakhstan, Earth’s No. 5 wheat source, just halted wheat exports, hoping to hoard local supplies. One third of the global wheat market is now closed.
High oil prices and growing global food demand fan these flames, but government lit the match. Atop the European Union’s biofuels mandate (5.75 percent of gasoline and diesel by 2010; 10 percent expected in 2020), America’s 51-cent-per-gallon ethanol tax subsidy (2007 cost: $8 billion) and Congress’ 7.5-billion-gallon annual production quota (rising to 36 billion in 2022, including 15 billion from corn) have turned corn farms into cash cows. Diverting one quarter of U.S. corn to motors rather than to mouths has boosted prices 74 percent in a year.
Eager to ride the ethanol gravy train, wheat and soybean farmers increasingly switch to corn. Thus, hard wheat is up 86 percent, while soybeans cost 93 percent more. Since April 15, 2007, pricier, grain-based animal feed (which consumed 40 percent of 2007’s 13 billion bushel U.S. corn crop) has helped hike eggs 46 percent. Got milk? You paid 26 percent more. Conversely, meat prices have dropped, as farmers slaughter animals rather than pay so much to feed them.
All this has triggered a race to the top of the grain silo. On April 9, “the World Bank estimated global food prices have risen 83 percent over the past three years, threatening recent strides in poverty reduction,” the Wall Street Journal noted the next day. “As crops are sold for alternative-energy production, food prices have soared: The price of rice, the staple for billions of Asians, is up 147 percent over the past year.”
As ReasonOnline’s Ronald Bailey observed April 8, “the result of these mandates is that about 100 million tons of grain will be transformed this year into fuel, drawing down global grain stocks to their lowest levels in decades. Keep in mind that 100 million tons of grain is enough to feed nearly 450 million people for a year” — assuming 1.2 pounds of grain each, daily.
In short, car engines are burning the crops that feed a half-billion people. That has to hurt.
“There is growing consensus that we need urgently to examine the impact on food prices of different kinds and production methods of biofuels, and ensure that their use is responsible and sustainable,” British Prime Minister Gordon Brown wrote Japanese Prime Minister Yasuo Fukuda April 10, urging discussion of the issue at July’s G8 Summit in Hokkaido. “Rising food prices threaten to roll back progress we have made in recent years on development. For the first time in decades, the number of people facing hunger is growing,” Brown added.
President Bush announced April 14 that the U.S. would provide $200 million in nutritional aid to poor countries ripped by such unrest. This may feed starving rioters, but it perversely requires that Uncle Sam allocate fresh taxpayer money to scour the mess he created by spending $8 billion in ethanol subsidies.
This is like buying a new hangover cure every morning after closing a new bar every night.
If this keeps up, President Bush may have to direct some of that food to a Western Hemisphere nation called the United States of America.
As shocking as it sounds, The New York Sun reported Monday that the global rice shortage has struck home. American citizens have begun to experience food rationing in our rich, blessed country.
“Due to the limited availability of rice, we are limiting rice purchases based on your prior purchasing history,” read a sign above a shrinking rice supply at a Mountain View, California Costco store. Each customer was limited to one bag of rice. A shopper who tried to buy two bags found one of them pried from his hands and thrown back on the store shelves, in something akin to Cuban-style egalitarianism. While such scenes have yet to erupt nationwide, the Sun found that limited stocks of rice, flour, and cooking oil are causing purchase limits and hoarding by consumers trying to lock in today’s high prices (fearing even higher future prices) or simply to acquire products that soon may be unavailable.
But wait. There’s more.
It would be bad enough if this human suffering and geopolitical strife were ethanol’s ransom for dramatic environmental progress. In fact, ethanol is Earth-hostile.
According to the Hoover Institution’s Henry Miller and University of California Davis professor Colin Carter, “ethanol yields about 30 percent less energy per gallon than gasoline, so miles per gallon in internal combustion engines drops significantly.”
*It takes three to six gallons of water to grow the corn for one gallon of ethanol, thus draining rivers and reservoirs.
*As farmers turn forests into corn fields, they expend energy uprooting trees that produce oxygen, absorb CO2, and store carbon. Princeton University researchers calculate that this ethanol-driven arboricide has spawned a “carbon debt” that already will take 167 years to reverse.
*As Princeton’s Tim Searchinger said in the February 8 Washington Post, “We can’t get to a result, no matter how heroically we make assumptions on behalf of corn ethanol, where it will actually generate greenhouse-gas benefits.”
*Meanwhile, tree killing consumes wildlife habitat. Orangutans now are in jeopardy as their surroundings fall to new, ethanol-inspired palm-oil plantations.
*Nitrogen fertilizer, common in corn cultivation, yields nitrous oxide, a greenhouse gas — which is no laughing matter. As Nobel laureate Paul Crutzen and his scientific team concluded in Atmospheric Chemistry and Physics last August 1, “the relatively large emission of N2O exacerbates the already huge challenge of getting global warming under control.”
*Unless superior substitutes emerge, obeying Congress’ 2022 diktat will require a corn crop equal to 115 percent of 2007’s U.S. output, with every kernel going to ethanol, none for food. The consequences would be calamitous — from movies without popcorn, to over-farmed and under-rotated fields, to growing global starvation.
It gets worse.
As Eric Peters explained in the March 3 American Spectator, ethanol is simply ethyl alcohol. Unfortunately, “Alcohol fuels may constitute a new type of fire hazard because they are harder to extinguish than gasoline fires and require new types of fire-extinguishing equipment and training.” Peters added:
The fires are extremely hot, and the flames invisible. . . . Foams designed to combat alcohol fires are made using specific polymers that can smother the flames of an ethanol fire but carry a price tag about 30 percent higher than conventional flame-suppressing foams. That means your local fire department has a new line item on the budget.
Enough!
Congress should abolish federal ethanol subsidies, mandates, and the 54-cent-per-gallon tariff on imports — including Brazil’s cheaper, cleaner, sugar-based ethanol. If scientists can develop ethanol that neither starves people nor rapes the Earth, splendid. However, this enterprise must not rest upon morally repugnant, ecologically counterproductive, economically devastating, government-ordered distortions.
It’s time for emergency legislation to repeal ethanol-market meddling. The federal program began as a sop to U.S. grain growers — arguably the most pampered and endlessly entitled people this side of the Saudi royal family. It has grown into a cancer on global food markets. Still, U.S. farmers won’t surrender quietly. Since they are hooked on handouts, let’s offer them one more: In exchange for accepting a two-year federal tax holiday on any income they earn, every actual, tractor-driving corn/biofuel farmer simply would walk away and let Congress relegate state-sponsored ethanol to the Unintended Consequences Hall of Fame. Compared to the global chaos that ethanol is fueling, this is a tolerable, one-time investment to pry these farmers’ and their Washington enablers’ hands off of our necks.
Apr/080
Aggressive New Fuel Economy Standards To Cost Automakers $47 Billion
As if the automotive industries don’t have enough financial trouble and enough regulations. If congress keeps butting into these industries with outrages requirements it’s going to cripple them even more. We always complain about jobs being moved overseas, this is why.
Look at all the studies about hybrid cars, about the danger of making cars light to meet fuel standards, these regulations are not helping.
Date posted: 04-23-2008
Anita Lienert, Correspondent
http://www.edmunds.com/insideline/do/News/articleId=125897WASHINGTON — The U.S. Department of Transportation on Tuesday announced that it wants to require automakers to achieve an average 31.6 miles per gallon by 2015 for the cars and trucks they sell in the U.S. — a move that will cost the industry $47 billion over a five-year period.
The proposal will save nearly 55 billion gallons of fuel and result in a reduction in carbon dioxide emissions estimated at 521 million metric tons, said U.S. Secretary of Transportation Mary Peters. Meeting the objective would require 4.5 percent annual improvements in fuel efficiency or a 25 percent improvement between 2011 and 2015.Under the new rules, cars must achieve fuel economy of 35.7 mpg by 2015, up from the current 27.5-mpg standard. Light trucks must improve mileage to 28.6 mpg, up from 22.5 mpg now.
Peters, who noted that she arrived at the press conference in a Saturn Aura hybrid, called the proposal “historically ambitious, yet achievable.” The Alliance of Automobile Manufacturers, the lobbying arm of the U.S. auto industry, issued a statement calling the fuel economy proposal “tough” and a “challenge.” It added, “We have a responsibility to increase fuel economy and limit greenhouse gas emissions from new automobiles.”
Apr/080
Food Rationing Confronts Breadbasket of the World
By JOSH GERSTEIN
Staff Reporter of the Sun
April 21, 2008
[source: http://www2.nysun.com/article/74994 ]
MOUNTAIN VIEW, Calif. — Many parts of America, long considered the breadbasket of the world, are now confronting a once unthinkable phenomenon: food rationing. Major retailers in New York, in areas of New England, and on the West Coast are limiting purchases of flour, rice, and cooking oil as demand outstrips supply. There are also anecdotal reports that some consumers are hoarding grain stocks.
At a Costco Warehouse in Mountain View, Calif., yesterday, shoppers grew frustrated and occasionally uttered expletives as they searched in vain for the large sacks of rice they usually buy.
“Where’s the rice?” an engineer from Palo Alto, Calif., Yajun Liu, said. “You should be able to buy something like rice. This is ridiculous.”
The bustling store in the heart of Silicon Valley usually sells four or five varieties of rice to a clientele largely of Asian immigrants, but only about half a pallet of Indian-grown Basmati rice was left in stock. A 20-pound bag was selling for $15.99.
“You can’t eat this every day. It’s too heavy,” a health care executive from Palo Alto, Sharad Patel, grumbled as his son loaded two sacks of the Basmati into a shopping cart. “We only need one bag but I’m getting two in case a neighbor or a friend needs it,” the elder man said.
The Patels seemed headed for disappointment, as most Costco members were being allowed to buy only one bag. Moments earlier, a clerk dropped two sacks back on the stack after taking them from another customer who tried to exceed the one-bag cap.
“Due to the limited availability of rice, we are limiting rice purchases based on your prior purchasing history,” a sign above the dwindling supply said.
Shoppers said the limits had been in place for a few days, and that rice supplies had been spotty for a few weeks. A store manager referred questions to officials at Costco headquarters near Seattle, who did not return calls or e-mail messages yesterday.
An employee at the Costco store in Queens said there were no restrictions on rice buying, but limits were being imposed on purchases of oil and flour. Internet postings attributed some of the shortage at the retail level to bakery owners who flocked to warehouse stores when the price of flour from commercial suppliers doubled.
The curbs and shortages are being tracked with concern by survivalists who view the phenomenon as a harbinger of more serious trouble to come.
“It’s sporadic. It’s not every store, but it’s becoming more commonplace,” the editor of SurvivalBlog.com, James Rawles, said. “The number of reports I’ve been getting from readers who have seen signs posted with limits has increased almost exponentially, I’d say in the last three to five weeks.”
Spiking food prices have led to riots in recent weeks in Haiti, Indonesia, and several African nations. India recently banned export of all but the highest quality rice, and Vietnam blocked the signing of a new contract for foreign rice sales.
“I’m surprised the Bush administration hasn’t slapped export controls on wheat,” Mr. Rawles said. “The Asian countries are here buying every kind of wheat.” Mr. Rawles said it is hard to know how much of the shortages are due to lagging supply and how much is caused by consumers hedging against future price hikes or a total lack of product.
“There have been so many stories about worldwide shortages that it encourages people to stock up. What most people don’t realize is that supply chains have changed, so inventories are very short,” Mr. Rawles, a former Army intelligence officer, said. “Even if people increased their purchasing by 20%, all the store shelves would be wiped out.”
At the moment, large chain retailers seem more prone to shortages and limits than do smaller chains and mom-and-pop stores, perhaps because store managers at the larger companies have less discretion to increase prices locally. Mr. Rawles said the spot shortages seemed to be most frequent in the Northeast and all the way along the West Coast. He said he had heard reports of buying limits at Sam’s Club warehouses, which are owned by Wal-Mart Stores, but a spokesman for the company, Kory Lundberg, said he was not aware of any shortages or limits.
An anonymous high-tech professional writing on an investment Web site, Seeking Alpha, said he recently bought 10 50-pound bags of rice at Costco. “I am concerned that when the news of rice shortage spreads, there will be panic buying and the shelves will be empty in no time. I do not intend to cause a panic, and I am not speculating on rice to make profit. I am just hoarding some for my own consumption,” he wrote.
For now, rice is available at Asian markets in California, though consumers have fewer choices when buying the largest bags. “At our neighborhood store, it’s very expensive, more than $30″ for a 25-pound bag, a housewife from Mountain View, Theresa Esquerra, said. “I’m not going to pay $30. Maybe we’ll just eat bread.”
Apr/080
Biofuels under fire at International Energy Forum
Mon Apr 21, 1:54 PM ET
ROME (AFP)
[source: news.yahoo]
Biofuels, once seen as a key factor in curbing greenhouse gas emissions, are behind the current global food crisis, major oil producers and consumers charged at an energy forum here on Monday.
“A conflict (is) emerging between foodstuffs and fuel … with disastrous social conflicts and dubious environmental results,” outgoing Italian Prime Minister Romano Prodi told the International Energy Forum here as rising food prices worldwide raise the spectre of famine in some countries.
“We have to examine very closely subsidy policies so as to avoid distortions in the allocation of resources,” Prodi insisted.
Agricultural prices were not only being driven by rising demand but also by increased cultivation of biofuels, “creating strong tensions in a number of countries,” he said.
Biofuels were developed as part of plans to limit and reduce greenhouse gas emissions, held responsible for global warming, but since they take up land that would otherwise be used for food production, they have been increasingly blamed for soaring food prices.
Qatari Energy Minister Abdullah bin Hamad al Attiyah said the world would have to choose “what its priority is going to be — driving or eating.”
He rejected suggestions that high oil prices were behind the food crisis.
“It’s not oil that should be questioned, it’s biofuels, which are at the root of the problem,” al Attiyah said.
The food crisis was due to food shortages and not to high oil prices, he argued.
“Even the big rice exporters such as India, Bangladesh and Thailand are in the process of reducing their exports,” he said. ”
Venezuelan Energy Minister Rafael Ramirez said that biofuels were having a negligible impact on the oil markets.
“But look at the impact (they have) had on food prices. It’s madness,” he said, adding: “All the countries of Latin America have been hit by the surge in food prices.”
Lawrence Eagles, chief analyst at the International Energy Agency (IEA) which represents the interests of the oil consuming countries, said he believed biofuels were “part of the equation” but it would be “wrong to focus solely” on just one element.
Rising food prices were due primarily to “very strong demand” for agricultural products in emerging countries, he said.
The IEA supported the use of second-generation biofuels, which used non-food plants as their base, Eagles argued.
“The second generation has its place in the palette of energy products,” he said.
Meanwhile the head of Royal Dutch Shell, Jeroen van der Veer, said that too much importance was being attached to biofuels. Biofuels “will play a role” but were only one of a number of energy components in the mix, he said.
Apr/080
EU defends biofuel goals amid food crises
Mon Apr 14, 10:39 AM ET
BRUSSELS (AFP)
http://news.yahoo.com/s/afp/20080414/sc_afp/euunfarmpovertyenergypoliticsbiofuel_080414143918
The EU Commission on Monday rejected claims that producing biofuels is a “crime against humanity” that threatens food supplies, and vowed to stick to its goals as part of a climate change package.
“There is no question for now of suspending the target fixed for biofuels,” said Barbara Helfferich, spokeswoman for EU Environment Commissioner Stavros Dimas.
“You can’t change a political objective without risking a debate on all the other objectives,” which could see the EU landmark climate change and energy package disintegrate, an EU official said.
Their comments came amid growing unease over the planting of biofuel crops as food prices rocket and riots against poverty and hunger multiply worldwide.
UN Special Rapporteur for the Right to Food Jean Ziegler told German radio Monday that the production of biofuels is “a crime against humanity” because of its impact on global food prices.
EU leaders, seeking to show the way on global warming, have pledged to reduce carbon dioxide emissions by 20 percent by 2020.
As part of a package of measures the 27 member states have set a target of biofuels making up 10 percent of automobile fuel by the same year.
“We don’t have an enormous danger of too much of a shift from food production to biofuels production,” said Michael Mann, spokesman for EU Agriculture Commissioner Mariann Fischer Boel.
Mann, like Helfferich speaking to reporters in Brussels, stressed that the 10 percent target would in part be achieved through higher yields and increased production.
Ziegler also accused the European Union of subsidising its agriculture exports with effect of undermining production in Africa.
“The EU finances the exports of European agricultural surpluses to Africa … where they are offered at one half or one third of their (production) price,” the UN official charged.
“That completely ruins African agriculture,” he added.
In recent months, rising food costs have sparked violent protests in Cameroon, Egypt, Ethiopia, Haiti, Indonesia, Ivory Coast, Madagascar, Mauritania, the Philippines and other countries.
In Pakistan and Thailand, troops have been deployed to avoid the seizure of food from fields and warehouses, while price increases fuelled a general strike in Burkina Faso.
The European Environment Agency, advisors to the European Commission, on Friday recommended that the EU suspend its 10 percent biofuels target.
It argued that the target would require large amounts of additional imports of biofuels leading to the accelerated destruction of rain forests. The agency also questioned the environmental benefits of biofuels.
Also in a recent report the World Bank said bluntly “biofuel production has pushed up feedstock prices”.
Meanhwile Peter Brabeck-Letmathe, head of Nestle, the world’s biggest food and beverage company, last month argued that “to grant enormous subsidies for biofuel production is morally unacceptable and irresponsible”.
“There will be nothing left to eat,” he added.
European leaders are aware of the growing body of opinion opposed to biofuels but Dimas has stressed the use of “second generation” biofuels; including leaves, straw and pond algae.
The first generation of green fuels — biodiesel and ethanol– are made from wheat, maize, colza, sugar beet etc, also used for human and animal feed.
However, according to French Ecology Minister Nathalie Kosciusko-Morizet, the methods for utilising the second generation sources are far from complete.
“That will take 10 to 20 years,” she told AFP.
The 27 EU nations are due on May 7 to approve strict criteria for the production of biofuels, according to the European Commission.
Speaking in Luxembourg on Monday French Agriculture Minister Michel Barnier, meeting with his EU counterparts, said that food production must be the priority.