Fundamentally biofuels must deliver significant greenhouse gas reductions compared to the fossil based fuels that they are being substituted for, as it is on this belief that consumer demand for biofuels is soaring worldwide. Sugarcane based bioethanol remains one of the best performing commercially available biofuels. Even with transport of bioethanol from Brazil to New Zealand taken into consideration, the energy output of Brazilian ethanol is still better than fossil based petrol.
A report by Nimmo-Bell for EECA and MAF Policy on the link between biofuel production and food prices.
This updated report confirms that the major drivers of food prices identified in the September 2008 report remain the same - oil price, food supply and demand, the US dollar (USD), and market distorting policies.