Chatham House sees cereal producers hedging to ensure food over fuel use

December 11, 2012 |

In the UK, Chatham House says in a new report that major grain-based and oilseed-based biofuel-producing countries could collectively purchase call options from their biofuel industries. This arrangement would act as a virtual global food reserve. These contracts could specify a trigger – based on a price index – which when activated would obligate the producer to release feedstock back into food chains.

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Category: Policy

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