FOOD SECURITY AND ECONOMIC BASIS OF BIOFUELS MANUFACTURING

Abstract

Introduction. The factor that has potential for a significant increase in food prices is the increase in biofuel production from agricultural food raw materials. Today it is virtually impossible to determine the quantitative parameters of the influence of biofuels production on food prices. According to the International Monetary Fund, 15 to 30% increase in food prices is the result of growing crops for biofuel production. Both the opponents and supporters of biofuels from agricultural raw materials have subjective economic considerations. Methods. The following methods have become the methodological basis of research: dialectical method, abstract and logical method, graphical method, method of theoretical generalization method, method of analogy and system approach. Results. The article analyses the level of food security in Ukraine and examines the likely impact of biofuel production on food security in the country. It has been substantiated that first generation biofuel production in Ukraine does not pose a threat to food security, since there are land that can be used to grow energy crops. It has been studied the expediency of biofuel production from the surplus of food crops that is being exported. It has been motivated by the need to switch to the production of second-generation biofuels, which does not endanger food security.