Governments of rich countries use a multitude of subsidies and similar measures to promote biofuels, and the amount of agricultural products used as feedstocks grows rapidly. Nearly ten percent of the world's cereal output may soon be used to produce biofuels. There is no doubt that this extra demand drives up food prices in international trade. As developing countries, on aggregate, are net importers of cereals and other foods, biofuels policies in the rich countries has a negative impact on food security in the poor countries.

Stefan Tangerman (Stefan.Tangermann@oecd.org)
Director for Trade and Agriculture Organisation for Economic Cooperation and Development - OECD
Paris, France