The Financial Times is reporting pressure at the G8 meeting from what the British call “campaigners” for the West to restrict its production of biofuels because of the effect it’s having on on food supplies:
ActionAid, a charity, blamed G8 countries in a report for what it said was a halving of agricultural aid since 1980 to $3.9bn, just 3 per cent of the subsidies given to farmers in the developed world. “Structures that provided access to credit, agricultural inputs and technical assistance have been dismantled,” it said.
The charity also called for a scrapping of all biofuel subsidies and a five-year moratorium on the diversion of arable land for biofuel production.
Fuel ethanol production is projected to increase from an annual average of 420,000 bbl/d in 2007, to 580,000 bbl/d in 2008 and 640,000 bbl/d in 2009.