A/HRC/9/23
page 43
10. The development of international trade in agrofuels will therefore further aggravate the
current situation in which, due to the significant purchasing power of consumers in industrialized
countries, a competition will emerge between the production of food for local consumption in
developing countries and the production of feedstock for transport and other uses in
industrialized countries. This is not a new phenomenon, of course: it is one which is linked to the
problem of cash crops in general, understood as crops which are exported instead of being
consumed in the country in which they are grown, and the production of feedstock for fuel
presents a certain analogy in this respect with the production of feed for livestock, in order to
meet primarily the demand for dairy food and meat in industrialized countries. What is unique
however about the demand for crops for fuel production is that this demand is much more
sensitive to price changes than demand for crops for food: while the level of consumption of
calories and even the composition of diets vary only to a small extent when prices change households usually cut down on education or other non-vital items before limiting their
consumption of food -, the demand for fuel is much more elastic, although it is driven both by
the price of oil (with which agrofuels compete) and by the price of crops. This means that the
volatility of the international markets for agrofuels may be particularly high. Even more
importantly, the demand for agrofuels is potentially almost infinite. Whereas increased demand
for crops for food or in order to feed livestock reaches a natural limit - the demand is saturated at
a certain level -, once crops are turned into bioethanol or biodiesel, the level of demand can be
such that a very large proportion of crops can be used for that purpose, without a risk of
saturation of markets before long. Thus, if the production of agrofuels is to develop in the future,
it will be particularly important to monitor the impact on the non-growers of these crops in the
producing countries: for even if the crop-growers themselves benefit from producing crops for
fuel which they export to foreign markets, the impacts could be negative on those other segments
of the local population, whose food security might suffer, for instance as a result of the increased
price of land or a diminished availability of food.
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