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| Everyone should read this New York Times article on food. In particular they focus on biodiesel and esp. palm oil. I would call this a fairly balenced article, and hard to argue with many of the points. They seem to hit reality square on the head. 1) Biodiesel demand represents just 7% of global edible oil demand 2) Any new demand unquestinably drives up prices 3) Higher prices hit the world's poor the hardest
I don't believe for a minute the American farmer should be subsidizing the world's poor. But the realiity of the situation we find ourselves in I think will make it increasingly difficult politically maybe even morally to lavish huge subsidies on the biofuels business.
We will turn EXCESS crops into fuel, and that is very supportive to long term agriculture prices, but the adjustment between the reality of those price points and the current market outlook will be painful in my opinion!
Thoughts?
http://www.nytimes.com/2008/01/19/business/worldbusiness/19palmoil....
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Food vs. Fuel debate is real...
