G20 Agriculture Ministers Must Focus on Oil Prices, Not Biofuels

As the G20 Agriculture Ministers meet for the first time in Paris, the Global Renewable Fuels Alliance (GRFA) emphasizes the need to focus on the root cause of rising food costs: the high price of crude oil. The GRFA, a non-profit organization promoting biofuel-friendly policies, highlights the direct link between oil and food prices. According to the GRFA, high oil prices increase fertilizer, packaging, and transportation costs, ultimately affecting global food prices. The relationship between oil and food prices is clear, as demonstrated by the correlation between crude oil prices and the UN FAO's Food Price Index.

Key Takeaways:

The GRFA emphasizes that the high price of crude oil is the primary driver of rising food costs, affecting fertilizer, packaging, and transportation costs.
The correlation between crude oil prices and the UN FAO's Food Price Index is strong, indicating a clear link between oil and food prices.
The GRFA, a non-profit organization, represents over 65% of global biofuels production from 44 countries and promotes biofuel-friendly policies internationally.
Alliance members are committed to producing renewable fuels with a minimal footprint through the development of new technologies and best practices.

Statistics:

The GRFA represents over 65% of the global biofuels production from 44 countries.
The correlation between crude oil prices and the UN FAO's Food Price Index shows a strong positive relationship between the two.
According to the GRFA, high oil prices increase fertilizer, packaging, and transportation costs, impacting global food prices.

Sources:

Global Renewable Fuels Alliance (2011) Marketwire via COMTEX.