VICTORIA – Farmers and biodiesel promoters weren’t intimidated by talk of a possible food versus fuel crisis cramping biofuel.
“I think it’s somewhat of a red herring to keep throwing this food-fuel debate because I think you can allow the third world countries to allow their farmers to increase food production,” said Broadview, Sask., farmer David Sefton, who is working to establish an ethanol plant in Melville, Sask.
Sefton said grain and oilseed prices pushed up by the surge in biofuel industry demand might not cause more hunger in developing nations. Instead, higher prices might prompt those countries to produce more crops.
Read Also
Feedgrain prices expected to plummet
A massive U.S. corn crop is keeping a lid on Canadian feed barley prices.
“If the world price goes up, then that local farmer has a higher price to sell his crops at, and he’ll produce more,” said Sefton.
There have already been tortilla riots in Mexico due to high corn prices, but Sefton said many developing nations are still mainly agricultural and would benefit from higher prices for farm products.
North Dakota farmer Tom Borgen was similarly unafraid of predictions of a food versus fuel crisis. He thinks crop development and yield improvements will keep up with demand, and farmers like chasing higher prices with more crop.
He was impressed by the optimism of Greg Webb, an Archer Daniels Midland vice-president, who spoke at the Canola Council of Canada convention.
“I like the enthusiasm that ADM gave, and I have to believe a company like ADM is large enough to have a bigger insight than I have,” said Borgen.
“If they think it will work for them, then I have to think it’ll probably work for me.”
Washington state biodiesel investor Jeff Stephens said the world will adjust to higher prices for crops and the higher prices will cause more crops to be produced, reducing the chance of a food versus fuel crisis.
“I think the food versus fuel issue isn’t really one of quantity, but of price,” said Stephens, a chemist who hopes to establish a crusher and biodiesel production plant in his state.
“As the biofuels industry brings some stability and higher prices potentially to the markets, that is going to cause some price pressure on food. But how much of the cost of a box of corn flakes is for the grain? Not much.
“I think we can satisfy both food and fuel. I don’t think it’s a real strong argument (that there has to be an either-or situation).”
