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In the US, the biofuel industry will consume around 30% of US maize production next year, according to the US Department of Agriculture.
Increasing land space is being allocated for biofuel production around the world. Between 2000 and 2008, use of cereals in biofuel production has risen by a quarter.
The method may be greener than drilling for oil - and biofuels burn cleaner - but experts see that such high levels of investment in plant crops is taking a lot away from the food crops industry. It is also causing a tragic rise in food prices that is likely to hurt the poor.
Increased energy costs
Also the rise in energy prices (crude oil traded at $126 at the time of writing) has a great impact on food prices. And to Abu Basha, the rise in inflation, which reached 14.4% year-on-year in March, is also a reflection of very high prices of building materials, especially steel and cement.
The increase in the prices of the building materials in addition to high levels of demand sent real estate prices to record levels.
'Food prices, which are the main driver of inflation in Egypt as they constitute around 44%, grew 20.5% year-on-year in March 2008. The increase in food prices was broad-based and it touched almost every single food item.
'The strongest to rise were bread and grain and cooking oil, which rose 48.1% year-on-year and 45.2% year-on-year respectively in March 2008. Moreover, prices of meat increased 17% year-on-year, fish 13.2%, dairy products 16.3%, fruits 20.4% and vegetables by 21.3% in March 2008,' Abu Basha says.
Time will tell whether the extra measures taken by governments around the Middle East will help reduce people's suffering and ease food prices. But if they don't, then maybe a change in dietary habits would be required, a thing that Abu Basha considers a fair argument considering the quality and quantity of food consumed in this part of the world.
Darine Wehbi, Editor - Arabic
