China biofuel policy may be in conflict with food security objectives

The USDA today said the China’s food security objectives may clash with its energy independance and environmental objectives. The study, titled China's Agricultural Trade: Competitive Conditions and Effects on US Exports says the development of China's biofuels industry affects China's agricultural production mix as it diverts output away from human and animal consumption into use as a fuel and contributes to increased imports of feedstock sources.

According to the report, China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks. Until May 2006, government subsidies were limited to fuel ethanol, at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources, including ethanol and biodiesel. Read more ...

This blog is written by Martin Little The Global Miller, published and supported by the GFMT Magazine from Perendale Publishers.