FAA excludes corn from the list of raw materials

Food and Agriculture Association of the United Nations has raised the alarm. It summons Europe and the US to stop using corn and sunflower as a feedstock for alternative fuels. According to statistics, the price for a bushel of corn has increased almost threefold, compared with the price for the same weight set a decade earlier, evaluated at about 6.1 dollars.

In fact, the price increase for corn raises the cost of other crops. In its turn, it affects the prices for food. The companies engaged in the production of biofuel in case of the withdrawal of the corn will have to shift to other potential raw materials.

However, the owner of the big company on the cereal crops cultivation says that the processing of corn for biofuel does not affect the increase in price for food. Monetary policy and global crisis are more important reasons.

Only 16% of oil-bearing plants are spent on the production of biofuel, 90% are used for food purposes. At the same time the tendency to develop alternative energy industry promotes the search of new sources of energy. A reasonable distribution of corn for food demands and heating is a key to avoiding the extremes, the experts say.