Western Producer published an article stating if the war in Ukraine causes food prices to further spike, the push to build up biodiesel capacity in countries such as the United States is likely to face growing scrutiny, two American experts told the Farm Foundation Forum.
“We had a big food-fuel debate in 2007-08 and I think that’s going to come back,” said Joseph Glauber, senior research fellow. Ethanol, however, is unlikely to be the focus this time, Glauber said. That fuel plays an important role in gasoline blends that would need to be replaced with another additive if ethanol was removed. “I don’t think (reducing ethanol support) would bring much relief, mainly because fuel suppliers depend on ethanol as an octane enhancer,” said Glauber. “Biodiesel is something different.” Mandated biodiesel inclusion in domestic fuel acts as a subsidy for the industry.
That’s likely to lead to bigger food subsidies in poor nations as governments try to head off political risks from a food-insecure population. “I think everybody knows the lessons of the Arab Spring,” said Glauber.