Bush is Right on Biofuels
“President Bush accurately recognizes that the rise in global food prices is the result of a variety of factors and that only a small part is due to increased demand for corn to produce ethanol.
“As one of the world’s wealthiest nations, we in the United States have a moral obligation to properly identify the factors that have come together to create this perfect storm of global suffering. We need to get it right, and fast.
“Among the many factors contributing to rising food costs, the blame placed on biofuels is grossly out of proportion to the main culprit: skyrocketing prices of fossil fuels. Fuel is a major cost in crop production. The fuel required to till, harvest, store and transport crops is now at record highs. With crude oil approaching $120 per barrel, and diesel exceeding $4.00 per gallon, natural gas prices, in turn, have driven fertilizer prices up another 50 percent. Altogether, worldwide agricultural markets have sustained a whopping 115 percent increase to bring food to our tables, just in the past year.
“Other factors contribute as well. Droughts in key countries reduced world production of key food stocks, rice and wheat. A weak dollar is driving up the demand for U.S. exports of grains, a dynamic exacerbated by hedge fund and pension fund managers who are pouring unprecedented levels of investment in grain commodities. Growing incomes and meat-eating preferences of an emerging middle class in countries like India and China are increasing global demand for animal feed and the fuel required for production and transport.
“In the short term, worldwide investment in biofuels may have placed some pressure on the price of corn in the U.S. But it is not the reason food prices are rising around the world – nor will it be the reason in the future.
“In the very near future, biotechnology will provide us biofuels from non-food crops, crops that yield more per acre, require less fertilizer, are more tolerant of drought and other adverse conditions, and help enrich the soil. These scientific breakthroughs will only enhance the world’s ability to feed and fuel itself in a responsible and sustainable way.
“The renewable fuel standards provisions of the 2007 Energy Act -- which were hailed by environmentalists, Congressional leaders and the Administration as visionary and forward-thinking -- are exactly right. With a careful balance of incentives and mandates, the Act encourages development of these advanced technologies, and the biofuels industry has answered the call: there are already 29 advanced biofuels refineries planned or under construction.
“As biofuels production transitions to the next generation, biotechnology can play an essential role in providing the world with cleaner fuel and more plentiful supplies of food. The world food crisis demands our full and immediate attention. And it deserves the wisdom and foresight to keep these promising technologies on track as a part of the answer.”
Upcoming BIO Events
BIO International Convention
June 17-20, 2008
San Diego, CA
Pacific Rim Summit on Industrial Biotechnology and Bioenergy
Sept. 10-12, 2008
Vancouver, BC
About BIO
BIO represents more than 1,200 biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and in more than 30 other nations. BIO members are involved in the research and development of innovative healthcare, agricultural, industrial and environmental biotechnology products. BIO also produces the BIO International Convention, the world’s largest gathering of the biotechnology industry, along with industry-leading investor and partnering meetings held around the world.
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