Rome to Costa: grain guzzling biofuels increase food prices - 3 June 2008

Today’s budget has done nothing to steer NSW away from grain guzzling ethanol projects in NSW that will continue to play a role in pushing global food prices up by an estimated 30 per cent.

“The UN’s World Food Programme will begin a meeting in Rome today that will confirm the devastating impact grain guzzling biofuels are having on world food prices,” said Upper House Greens MP Ian Cohen.

“How can this Government declare that the food vs. fuel debate is irrelevant in NSW when just two of Tony Kelly’s proposed new ethanol plants in Coleambally and Junee will consume up to 2 million tonnes of wheat, barley, maize and sorghum?

“Tony Kelly claims that only ‘waste’ materials are used by Manildra at Bomaderry but
John Honan of the Manildra Group told a Victorian Government Inquiry last year that
‘we do actually buy some other grain and put it directly into ethanol’.

“Australia is a net exporter of food. If NSW continues to favour the grain guzzlers over companies developing 2nd generation biofuels, it will have an impact on the 290 million people that Oxfam says are threatened by rising food prices.

“The proposed 10 per cent ethanol target for NSW would require 2.5 million tonnes of grains like wheat to be diverted. At an average consumption of 152 kg/annum (FAO, 2008), that quantity would feed over 16 million people.

“Mr Costa and ‘Minister for Ethanol’ - Tony Kelly don’t seem to see the writing on the wall, but their Queensland counterparts are taking note.

“Just last week the QLD Government announced incentives for a 2nd generation biodiesel manufacturer to trial production of biodiesel from algae – a process that does not use food as feedstock. The process – if commercialised – would also consume CO2 as the algae grows.

“Without a policy framework in place to guide the production of biofuels towards sustainability and away from competition with food, decisions on alternative fuels projects will continue to be ad hoc and susceptible to pressure from political donors - like Manildra - with deep pockets and vested interests,” said Mr Cohen.

Further Information: Ian Cohen: 0409 989 466 or Nic Clyde on 0417 742 754