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Experts: No Slowdown to Rising Food Prices

HeadlineMay 30, 2008

International experts are warning global food prices will remain high over the next decade. A new report from the United Nations and Organisation for Economic Co-Operation and Development blames the rising cost of oil, the weakening dollar and increasing demand for biofuels such as ethanol. The report calls for a reevaluation of the drive to invest in biofuels, which are said to account for 33 percent of the rising food costs. Ethanol has raised food prices by diverting crops to produce fuel rather than food. Kemal Dervis of the UN Development Programme said the environmental gains of biofuel investment need to be evaluated in light of its effect on increasing hunger.

Kemal Dervis: “Well, you know, I think one important thing we are also discussing is that the fight against climate change and the fight against poverty should not be viewed as two separate things. They must be integrated into an overall strategy, and I think some of the problems we’ve seen with biofuels is that the strategy vis-a-vis climate went ahead without coordination and without being part of the overall strategy for development.”

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