Blame Oil, Not Biofuels

The food versus fuel debate continues to rage as the increase use of biofuels has coincided with global food price spikes.

However, a study from Texas A&M says that rising energy costs are to blame for the run up in food prices. The report "The Effects of Ethanol on Texas Food and Fuel" says that corn has less impact on food prices than the cost of eggs, bread and milk that are largely independent of the impact of biofuels.

According to the report ((PDF), "The underlying force driving changes in the agricultural industry, along with the economy as a whole, is overall higher energy costs, evidenced by $100 per barrel oil."

Supporting this viewpoint is Germany's environment minister, who dispels the notion that ethanol is to blame. He stated that the EU can meet its biofuels commitment without competing with the food supply.