Indonesian food riots spread, force government to declare emergency as rising soybean prices fuel unrest

In Indonesia, government officials and police have been forced to clear the streets in an emergency action after food riots broke out Indonesia over rising soybean prices. Increasing demand in China, reduced US capacity as more farmers plant corn for ethanol, and poor harvests in Brazil and Argentina fueled the protests, the largest since Mexican protests and riots over rising tortilla prices last year.

The current wave of food riots began last winter when Mexican consumers rioted over rising tortilla prices. In Mauritania this past November, one person was killed and several injured when food riots broke out in several provinces. Protesters were demonstrating over rising food prices, and an 18-year old was shot in Kansoaa by security forces after protestors attempted to invade the home of a local official. The rise of food transport costs, associated with the increase in oil prices, and biofuel production were blamed for the price hikes.

The UN FAO released a report saying that 40 nations face critical food shortages, for reasons including climate change, higher meat consumption in developing countries, crop failure, war, and diversion of food crops for biofuels.

The FAO report said that its food price index rose 40 percent in 2007 compared with 9 percent in 2006, and food riots have occurred in Mexico, Morocco, Uzbekistan, Yemen and Senegal.

Top FAO official Jeff Tschirley, recently said “FAO strongly feels that food security and environmental considerations must be fully addressed before making investments or policy decisions, and we are actively working to ensure this happens. However, a moratorium that ignores the potential of biofuels to support rural development and assist the economies of developing countries would not, in our view, be a constructive approach to this topic.”

He said that the description of biofuels as a “crime against humanity” by Dr. Jean Ziegler, UN Special Rapporteur on The Right to Food, was regrettable.

In a recent report addressing the food vs. fuel debate, Informa Economics released a 20-year study exonerating ethanol for having a serous impact on food price rises.

The food vs. fuel controversy was named one of this 2007’s 10 Biofuels Trends to Watch. Environmental, cattle, poultry, water, and oil groups have funded campaigns highlighting the impact of biofuel production on food costs.

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