Corn for Biofuel Puts Food Reserves at Risk

The Netherlands-based magazine Oil World warned that the increase in the use of corn in the US to produce ethanol will cause a reduction in US and world food reserves.

The world harvest of soya could drop by approximately 5 million tons to 228.5 million when US producers earmark more farmland for corn used for biofuel production.
Oil World reported that in 2007-2008 the soya harvest in the US would be 77.6 million tons less than the 2006-2007 harvest that produced 86.7 million.

This reduction in soya and corn harvest for the food industry will increase demand for both products and lead to a price hike on the world market. This happens at a time when several countries have reduced their internal production —especially small and midsized producers, favoring products that are imported and subsidized by the US.

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