Oil World predicts global food crisis due to biofuels

German oilseeds analysts Oil World have predicted a global food crisis due to biofuels. The firm projected switches from oilseed to grain production which will leave global production at 17 million tonnes short of oilseed demand and reduce global stocks of oilseeds to 64 million tonnes.

There has been a spate of predictions of a global food, water or commodity crisis in recent weeks. There appears to be a steady stream of oil-related consultants at work here, which raises questions about their bona fides. Recently, Fidel Castro made headlines with a prediction that half the world population would die ‘before their time’ die to biofuels made from crops.

It is not entirely clear why the oilseed market would not make an adjustment through price increases that would alleviate shortages, and also it is difficult to reconcile this report with reports from Southeast Asia that palm-oil biodiesel plants are mothballing, cancelling construction, or finding it difficult to raise money due to feedstock price issues.

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