The United Nations FAO has released data showing that global food prices have seen the steepest monthly drop since 2008. That casts doubt about the impact of ethanol production on food price increases. Renewable Fuel Association’s Senior Vice President Geoff Cooper says it also debunks the Food versus Fuel argument that oil companies use to blame ethanol for high food prices.
The FAO report also shows the decline in food prices coincides with a period of record ethanol production expansion reaching a high of 94 billion litres in 2014 from 83.5 billion litres in 2012., a 10 per cent increase over that period. Cooper says if you compare the U.N. report with oil prices it shows a relationship between oil prices and food prices.
Besides the United Nations FAO, international groups including the World Bank, and International Energy Agency have also seen the strong relationship between oil prices and food prices.