Food prices, rising all over the world, will not come back to the previous standards, affirmed on Wednesday (14) the minister of Agriculture, Reinhold Stephanes. On the contrary, emphasized the minister, saying that new rises should happen until 2012, in case the rise in consumption persists.

During a public hearing promoted by the permanent Subcommittee on Biofuels and the Committees on Agriculture and Land Reform (CRA) and External Relations and National Defense (CRE), the minister pinpointed higher offer as a solution to the crisis, highlighting the fact that there is enough land in Brazil to expand the growing of both food and sugar cane for ethanol production.

As noted by Reinhold Stephanes, rise in food prices were caused by a wide range of factors, including higher earnings and, as a consequence, higher consumption in developing countries.

- Demand for food is increasing at a rate of 5% in the last five years, and the agriculture cannot cope with it. In the same period, wheat, corn and rice stocks have fallen more than 50% - said the minister.

He recognized that the rise in food prices is related to the US’s decision of using corn to produce ethanol, but also stressed the impact of climate change in agriculture, reducing the productivity in many countries. Stephanes reckoned Brazil as a country capable of producing enough to feed the population, respond to the rise in the demand and boost exports. 

- Brazil is perfectly able to couple higher food production with energy production. Besides, this sector has the ability to competitively produce ethanol for the market of fuels.

The chief of the Department of Energy from the Ministry of Foreign Relations, minister André Aranha Corrêa Lago, underlined that Itamaraty has been working hard to demonstrate that the European Union’s restriction on biofuels does not apply to the Brazilian case.

- This country has been a victim of prejudice and distorted ideas, but it has proved its openness to debate, showing the differences of Brazilian ethanol – said the minister while highlighting the potentialities of biofuel as an alternative resource of energy.

Ethanol’s positive impacts on the environment were also complimented by the secretary of Industrial Technology of the Ministry of Development, Industry and Foreign Trade, Francelino Grando. He reminded the technological advances obtained by the country, allowing the production of flex and biofuel vehicles – moved by gasoline and ethanol. 

The secretary of Extrativism and Sustainable Rural Development from the Ministry of the Environment, Ergon Krakhecke, stressed the importance of the Brazilian cooperation with other developing countries, especially with Africa. In his opinion, criticism to biofuel derives mostly from “huge economic interests” that have been spreading misinformation about the Brazilian production of ethanol. As an example, he referred to the position adopted by European car manufactures, refusing to test flex fuel cars.