19th November 2008

Biofuels were not to blame for high crop and food prices during 2008, according to the president and CEO of Biotechnology Industry Organisation (BIO), Jim Greenwood.

Greenwood said, ‘American consumers should not be fooled by ongoing attempts to misplace blame for this year’s rise in food prices on biofuels. The evidence before consumers is clear: crop prices have fallen dramatically in the past few months as oil and gas prices have declined. A barrel of oil cost $140 in July but is currently less than $65. Similarly, a bushel of corn that was more than $7.50 back in July is now less than $4, even while production of biofuels and other food, feed and fibre demands have all remained consistent.’

Greenwood went onto add that agricultural technology was continually working towards increasing crop yields, resulting in greater biofuels feedstock growth on less land and labeled advanced biofuels as an opportunity for tremendous growth.

‘The nation’s current goal of producing and using 21 billion gallons of advanced biofuels by 2022 is a tremendous opportunity for jobs and growth. A 2007 U.S. Department of Commerce report projects that this amount of cellulosic ethanol would replace 4.1 per cent of U.S. oil imports, keeping $8.4bn in the US. economy rather than sending it overseas. It also shows that producing this amount of cellulosic ethanol could add $12.6bn dollars to US consumers’ pockets. Production of advanced biofuels could increase US gross domestic product by $4.7bn and, importantly, would add more than 20,000 jobs to rural economies,’ Greenwood added.

BIO represents more than 1,200 biotechnology companies, academic institutions, state biotechnology centers and related organizations across the US and in more than 30 other nations.

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