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EU warns of end to cheap food and looming global crisis
25-Apr-2008 - EU development commissioner Louis Michel has warned
that the days of "cheap food are over" and that the world faces a
major food crisis unless there is a global response to higher
prices.
Speaking during the European Parliament debate on food prices in
Strasbourg earlier this week, Michel said that there was a global
crisis brewing.
"It might be less visible than the energy crisis but it could have
devastating economic and humanitarian effects, especially in
Africa," said.
MEPs were united in their calls for an urgent global response to
rising food costs, which they said were caused by climate change, a
lack of supply, higher demand and consumption and record oil prices.
Blame pointed at biofuel production
But they also blamed an increase in biofuel production for part of
the increase, since growing crops for fuel is more profitable than
planting food crops.
The UN has called for a five-year moratorium on biofuels - a move
welcomed by some MEPs.
Several EU countries, such as the UK, have already agreed to rethink
their biofuels policies, although Brussels continues to maintain its
target of increasing the use of plant-based fuels by 10 per cent by
2020, arguing that their impact on global food prices is still only
minimal and warning against a knee-jerk reaction.
European target tackles climate change
The European commission's target was set in February as part of a
wide-ranging programme of measures designed to tackle climate
change.
But most MEPs said that speculation was the chief villain when it
came to rising prices, arguing that investors have moved from oil to
commodities.
This was artificially inflating prices in order to make bigger
profits and constituted "playing with people's lives", according to
one senior deputy. "We should not allow the financial system to
contribute to hunger," added another.
Global food prices rise 45 per cent in nine months
World food prices have risen 45 per cent in the last nine months,
MEPs heard, and there are serious shortages of rice, wheat and
maize.
Commissioner Michel also told MEPs that the EU had increased its
food aid by nearly €120m as a direct response to the current crisis.
"The rise in basic food prices is a worldwide humanitarian disaster
in the making. Addressing the food price issue is a global challenge
requiring long-term solutions but the emergency is now. We have an
obligation to act - and act quickly," he said.
The increase takes Europe's total humanitarian food aid budget so
far in 2008 to €283.25m. |