Abstract

In light of the recent rise in global food p rices, much of the publications on crop - based biofuel production focus on the potential impacts on food security. The bio fuels include bio ethanol, bio butanol, biodiesel, vegetable oils, bio methanol, pyrolysis oils, biogas, and bio hydrogen. There are two global biomass based liquid t ransportation fuels that might replace gasoline and diesel fuel. These are bioethanol and biodiesel. About 60 % of global bioethanol production comes from sugarcane and 40 % from other crops. The central policy of biofuel concerns job creation, greater eff iciency in t he general business environment and protection of the environment. The use of biofuels decreases the external energy dependence, promotion of regional engineering, increased R and D, decrease in impact of electricity production and transformati on; increases the level of services for the rural population, creation of employment, etc. There is considerable controversy about the impact of biofuels on food security in developing countries. A major concern is that biofu els reduce food security by inc reasing food prices. In this paper we use survey evidence to assess the impact of castor production on poor and food insecure rural households in Ethiopia. About 1/3 of poor farmers have allocated on average 15 % of their land to the production of castor b eans under contract in biofuel supply chains. Castor production significantly improves their food security: they have fewer months without food and the amount of food they consum e increases. Castor cultivation is beneficial for participating households’ fo od security in several ways: by generating cash income from castor contracts, they can store food for the lean season; castor beans preserve well on the field which allows sales when farmers are in need of cash (or food); spillover effe cts of castor contra cts increases the productivity of food crops. Increased food crop productivity offsets the amount of land used for castor so that the total loc al food supply is not affected.

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