FAO Urged to See Oil and Food Price Correlation

Cindy Zimmerman

Global RFAThe Global Renewable Fuels Alliance (GRFA) is calling on delegates to the United Nations Food and Agriculture Organization (UNFAO) meeting in Rome to focus on the price of oil as the real driver behind rising food costs.

Last week while addressing the South American renewable fuels industry in Buenos Aires, GRFA spokesperson Bliss Baker presented data showing the direct link between the recent increase in crude oil prices and the UN FAO’s world food price index.

Global RFA“There is very clear evidence that oil prices are continuing to have a disproportionate affect on the price of our food,” said Bliss Baker. The UNFAO’s Deputy Director, David Hallam confirmed this same finding in early March by saying that “unexpected oil price spikes could further exacerbate an already precarious situation in food markets.”

In January of this year the UN FAO’s global food price index hit an all time high which provoked angry responses from several other organizations concerned with food security. World Bank managing director, Ngozi Okonjo-Iweala said, “food prices are not only rising, but they are also volatile and will continue this way into the future.” The International Energy Agency called rising oil prices “dangerous” warning that high oil prices could threaten the stability of an already fragile recovering global economy.

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biofuels, Ethanol, Ethanol News, Food prices, International, Oil