Biofuel backlash

Overview

As global demand for biofuels grows and production ramps up, environmentalists, food companies and livestock owners are raising questions about the ecological impacts, economic rationale and political costs of biofuel programs. Politicians and central bankers, too, are taking notice as demand for agricultural commodities spurs higher food prices and concerns about inflation.

The backlash comes as ethanol prices in the US have fallen 12 per cent since January, putting pressure on...