Why do biofuels raise food prices

Biofuel: E10 drives up food prices sharply

Food is becoming significantly more expensive - also as a result of biofuels such as E10. Food prices could rise by up to 3 percent this year, and even more for some goods, said a spokeswoman for the Federal Association of the German Food Industry (BVE). The industry joins the forecast of the retail trade.

Due to political requirements, grain is increasingly being used for biofuels and biodiesel is being produced from rapeseed. "The additional demand for grain and rapeseed leads to price increases that increase the cost of food production." According to information from the "Bild" newspaper, 15 kilograms of grain run into the tank with every 50 liter tank of bio-petrol E10.

However, it is not only the controversial E10 that leads to higher prices. Grain prices have been soaring for some time. This is due, among other things, to an increasing global demand for food. The German Farmers' Association does not see any significant increase in the price of food due to biofuel. According to the economy, raw material prices could rise even faster than consumer prices. "For products made from pork and beef, we expect price increases of between 15 and 20 percent," said BVE boss Jürgen Abraham of "Bild". Cheese and yogurt could be 10 to 15 percent more expensive.

According to the newspaper, when fattening the animals, three kilograms of grain are required for one kilogram of meat. The bakers warn of higher prices for baked goods of three to five percent. "It is absurd to burn grain while some people in the world do not have enough to eat," said Association President Peter Becker of "Bild". According to the PHW Group, which sells the Wiesenhof brand, poultry meat and chicken eggs are 10 to 15 percent more expensive. German brewers expect around 25 cents more per case of beer.

The managing director of the largest German meat product manufacturer Tönnies Fleischwerk, Clemens Tönnies, told the newspaper: "E10 increases the price pressure dramatically because a lot of animal feed disappears into the biogas and bioethanol production." According to information from Greenpeace, 142 million tons of grain were used for biofuel last year.

Farmer President Gerd Sonnleitner criticized the debate. "We use 2 to 5 percent of our production for biofuels in order to reduce the dependency of German drivers on (the Libyan ruler Muammar al) Gaddafi and other oil despots and at the same time to do something for climate protection, then this is criticized completely irrelevantly" he announced. "After decades we are finally getting out of the treadmill of falling milk, grain and meat prices, and this will result in a" shortage for world food "."