Rising Biofuel Use to Drive Up Crop Prices – Goldman

Rising biofuels demand will probably drive up crop prices and is creating growth opportunities for food processing companies, Goldman Sachs said on Wednesday.

The growth in biofuel demand presents a new competitor for food as commercially available biofuels, such as ethanol and biodiesel, use crops that could otherwise be producing food.

“The most likely impact of this competition for resources (between food and fuel) will be upward pressure on crop prices,” Goldman said in a research document on biofuels and food.
Planet Ark