Will Biofuels Increase Hunger?.

A lack of food is a result of many factors.  Some are economic, many are political.  Depending on the quantity produced and the kinds of feedstocks used, biofuels can significantly affect both the price and the quantity of food available.  Current and projected production levels of ethanol have not and will not have that impact.  However, it is likely that the projected global expansion of biodiesel, if made from vegetable oils and the limited feedstock supply, could have a significant impact.  The impact on the quantity of food and feed available from an expanded use of biofuels will be minimal, in large part because of higher yields.  The impact on the wholesale price of crops could be very large as has already been demonstrated, but that translates into a modest increase in the retail price.  On the bright side, increased commodity prices could increase the production of food within developing countries and minimize the traditional practice of richer countries dumping their subsidized commodities at below cost.  The result could be a reduction of hunger and a strengthening of rural economies.  A key factor determining the impact of biofuels is the ownership structure of the biorefinery and its scale.