FOOD PRICE RISES: CAUTION URGED

2.10.00pm UTC (GMT +0000) Wed 23rd Apr 2008

Local Euro-MP and LibDem European agriculture spokesperson Liz Lynne has urged caution in the wake of rapid food price rises which some have blamed on the increase in biofuel cultivation.

Commenting today in response to debate in the European Parliament on the subject, Liz Lynne MEP said:

"Food price rises across the world have been largely due to increasing demand in emerging markets such as India, and China where meat consumption has doubled, increasing demand for grain. Production has not kept pace with demand and financial speculation has also been a problem.

"In the UK as elsewhere we have seen prices on the supermarket shelves increase alarmingly quickly after a period of cheap food. While price rises might superficially seem like welcome news for farmers, they need to cover their increased fuel and feed costs. For this reason we need to ensure that the supermarkets' price increases are passed on to producers.

"Food aid will be needed in the short term to help millions in the developing world now threatened with poverty and starvation. We must also continue to monitor the sustainability of the use of bio fuels and the effect that their production is having on food prices and be willing to propose corrective action and put safeguards in place if this is proved necessary."

ENDS