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  • FOOD AND FUEL PRICE WARNING
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10th January 2008 Economic

FOOD AND FUEL PRICE WARNING

So the New Year has started with record highs in prices for oil and many agricultural commodities. Yes, indeed, choices will have to be made.

We are facing the confluence or rather conflict of four major trends:

1. Growing world population.

2. Rising prosperity in major emerging economies such as China and India.

3. Climate change disrupting agricultural supply patterns.

4. Governments disrupting market forces for fuel supply competitiveness.

One wish I have for 2008 is that biofuels should be developed on their own merit. Artificial subsidies will accentuate the overall problems and there are enough problems already.

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