Wednesday, April 16, 2008

The new wave - part deux

After I wrote the piece, I keep seeing the current effort to re-engineer the food chain for the future.

But unfortunately, not many investors have caught on.

Is biofuels to blame for the recent price increase in food commodities.

Yes and No

Yes because the world has only such a defined amount of feedstock available. It is not an ever-growing pie. So when it becomes more lucrative for the middle mens and farmers to sell to biofuel customers than to food customers, you bet they will do that. That is the beauty and the horror of the free market.

No because if companies wayyy back had come to realize the even oil is a limited commodity, they should have pushed harder to develop technologies such as the hybrid, fuel-cells etc etc.

Yes, it is a bit simplistic, but I do try to keep it short and simple.
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