What the price of going green will mean to you

The price of going green could be a lot closer then you think, countries such as Brazil, the United States, Germany are investing billions of pounds into converting crops which can be used to biofuels, the idea is to reduce our dependency on the traditional fossil fuels as well as imports from the Middle East and Russia.

Biofuels produce less in carbon dioxide then the traditional fossil fuels which we are used to, when added to traditional petrol and diesel, this can be very benficial to the environment.

However experts fear that this could cause the cost of food to rise to ordinary households as food destined to consumers go to refiniries instead. There are also ethical issues involved as food which have could gone to the third world instead ends up being used to create electrictity for the power hungry West.

It is forecast by Goldman Sachs, that the growth of biofuels in the medium term will in general increase food prices and inflation generally.

Farmers are the winners as they will gain entry to new markets, while food makers will be the losers, as they see their margins reduced as the cost of raw materials start to rise.

This will mean ordinary consumers will soon see this effect reflected in the price of a loaf of bread or a box of Cornflakes.