But an expert panel convened by the UN Food and Agriculture Organization this month pointed out that the biofuels boom produces both benefits as well as tradeoff and risks - including higher and wildly fluctuating global food prices. In some markets grain prices have nearly doubled because farmers are planting for biofuels, "At a time when agricultural prices are low, in comes biofuel and improves the lot of farmers and injects life into rural areas," said Gustavo Best, an expert at the United Nations Food and Agriculture Organization in Rome. "But as the scale grows and the demand for biofuel crops seems to be infinite, we're seeing some negative effects and we need to hold up a yellow light."
Josette Sheeran, the new head of the UN World Food program, which fed nearly 90 million people in 2006, said that biofuels created new dilemmas for her agency. "An increase in grain prices impacts us because we are a major procurer of grain for food. So biofuels are both a challenge and an opportunity."
In Europe, the rapid conversion of fields that once grew wheat or barley to biofuel oils like rapeseed is already leading to shortages of ingredients for making pasta and brewing beer, suppliers say. That could translate into higher prices in supermarkets. "New and increasing demand for bioenergy production has put high pressure on the whole world grain market," said Claudia Conti, a spokeswoman for Barilla, one of the largest Italian pasta makers. "Not only German beer producers, but Mexican tortilla makers have see the cost of their main raw material growing quickly to quickly to historical highs."
For some experts, more worrisome is the potential impact to low-income consumers from the displacement of food crops by bioenergy plantings. In the developing world, the shift from growing food to growing more lucrative biofuel crops destined for richer countries could create serious hunger and damage the environment in places where wild land is converted to biofuel cultivation, the FAO expert panel concluded. But officials at the European Commission say they are pursuing a measured course that will prevent the worst price and supply problems that have plagued American markets.
"We see in the United States farmers going crazy growing corn for biofuels, but also producing shortages of food and feed," said Michael Mann, a commission spokesman. "So we see biofuel as a good opportunity - but it shouldn't be the be-all and end-all for agriculture."
In a recent speech, Mariann Fischer Boel, the EU agriculture and rural development commissioner, said that the 10 percent EU target was "not a shot in the dark," but rather carefully chosen to encourage a level of biofuel industry growth that would not produce undue hardship for the Continent's poor. Over the next 14 years, she