Increased bio-fuel production has contributed to the rise in food prices, according a new report from the World Bank. Concerns over oil prices, energy security and climate change have prompted governments to increase bio-fuel production and use leading to greater demand for raw materials including: wheat, soy, maize and palm oil.
“Poor people are suffering daily from the impact of high food prices, especially in urban areas and in low income countries,” said World Bank Group President Robert B. Zoellick. “In some countries, hard-won gains in overcoming poverty may now be reversed. As an international community we must rally not only to offer immediate support, but to help countries identify actions and policies to reduce the impact on the world’s most vulnerable.”
