Two German ministers are contesting the widespread theory that the production of biofuels is causing the cost of food to rise substantially. The ministers believe that Germany should continue toward their goal of using 20 per cent renewable energy by 2020 and that the only way to reach this target is to meet it using 10 per cent biofuels.

Horst Seehofer, Germany's agriculture minister instead believes rising food prices are due to the increase in both the global population and spending power in developing countries. Seehofer maintains that only two per cent of farmland worldwide is dedicated to growing crops for the use of biofuels.

Sigmar Gabriel, the environment minister also reiterated that poor harvests, as well as increased spending power and growing financial investment in commodities were to blame, saying financial speculators were driving up the cost of food in poor countries, labeling them "the real locusts."

German Chancellor Angela Merkel has requested Seehofer work with other ministries to develop a new German biofuel policy that will take into account what they say are falling food prices in sectors such as milk and pig farming. They claim attention needs to be given to long-term food production as a means to counter the effects of rising food prices.

» Reuters Environment