World grain prices continue to rise due to some of the factors we have discussed at Peak Food. The ones that have had an effect this year are climate change, millions moving up the food chain and increased biofuel production.
Biofuel production is increasing at a rate that is hard to believe. Philip Clarke in Farmers Weekly on 31/08/07 reported that two new massive biodiesel plants have been opened in the US with a combined capacity of 845 million litres. In the US there are now 150 biodiesel plants with 95 under construction and 130 ethenol plants with 98 under construction. AFBF economist Jennifer DuMars estimates that ethenol plants will use 88m tonnes of maize this season, nearly a quater of all output.
Taken together with increased biofuel production in other parts of the world, this is causing a massive loss of land for food production when we actually need more food production. We are now in a very dangerous position and desperately need a good harvest next year with few weather disruptions.