Fuel quest may create food crisis

THE world is in danger of running out of basic foodstuffs, according to a leading Australian economist.

The shortage will create further dramatic price rises in essential grains such as wheat and corn, accompanied by a tightening of supply, says ABN Amro Morgans chief economist Michael Knox.


Mr Knox blames much of the supply and price crunch on the international demand for grain to be used to manufacture bio-fuels such as ethanol.

“Some people worry about the world running out of oil. They should worry about the world running out of food,” he said in a recent paper.

Courier-Mail (Australia)