BIOFUELS

Biofuels causing “peak beer” crisis

GROWING demand for ethanol and biodiesel is prompting farmers to replace barley crops needed for...

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Barley production in the US is now at its lowest level since 1936 and futures prices for European malting barley, which is used for brewing and distilling, have risen 85% since last May.

Meanwhile, the US Agriculture Department has said the amount of corn being used for ethanol could increase 50% over the next year and the ethanol industry’s demand for grain could raise prices for all kinds of foods.

While the kind of corn used to make ethanol is not eaten by people, it is used to feed cows, pigs, chickens and other livestock. And as farmers plant more corn, other grains will become less plentiful and more expensive.

Already, grain prices in Australia and other countries have been pushed up by the growing US biofuel industry.

According to Associated Press, president and chief operating officer of US ethanol producer Cargill Greg Page said rapidly growing demand for biofuels could worsen hunger in developing countries.

“We as leaders should be asking ‘What prices are we prepared to make the world’s poor pay for food?’” Page said.

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