Simultaneous Food and Biofuels Production and its Implications on Food Security

Abstract

Achieving food security while producing biofuel to power vehicles is one of the primary challenges humanity faces in the new millennium. Is there currently enough food for all? Food reserves in storage are reported to have declined by 22% compared to the 2005–2006 level, with an additional decline of 53 million tons (Mt) expected this year. In the Philippines, rice serves as the barometer of food security. While the government claims there is no rice shortage, 2.7 Mt of rice must be imported for the lean months (July, August, and September) as a buffer stock. By 2015, or even earlier, rice supply will become more precarious, with a projected 22% supply deficit if current output levels are simply maintained. It is difficult to assert that there is no rice crisis and that the issue is solely a price crisis. The price of rice relative to 2007 has increased by 2.22 times (from ₱17.50 to ₱40.00 per kg) as of June 2008. Many believe the current price is already high. Using three different methods to determine the true price of rice shows that 1 kg of rice is worth ₱66/kg (based on a $1,136/ton import price), ₱65.41/kg (relative to its 1975 price adjusted by the Consumer Price Index), and ₱80/kg (considering price parity with oil, oil-based inputs, and fair labor costs).