Today's Guardian (Food & Drink) has a story about the explosive growth of the biofuel industry and its impact on food prices. Are we North Americans losing the plot, obsessing about iorganic, ethical, fresh, local food and the need to pay more for better food, when something much more significant is happening?

John Vidal's report begins "Land that was once used to grow food is increasingly being turned over to biofuels. This may help us to fight global warming - but it is driving up food prices throughout the world and making life increasingly hard in developing countries."

Vidal calls it the global green rush "one of the greatest shifts that world agriculture has seen in
decades."

"While this may be marginally better for carbon emissions and energy security, it is proving horrendous for food prices and anyone who stands in the way of a rampant new industry. A year or two ago, almost all the land where maize is now being grown to make ethanol in the US was being farmed for human or animal food. And because America exports most of the world's maize, its price has doubled in 10 months, and wheat has risen about 50%.

The effect on agriculture in the UK is price increases all round. "The world price [of maize] has doubled," says Mark Hill, food partner at the business advisory firm Deloitte. "In June, wheat prices across the US and Europe hit their highest levels in more than a decade. These price hikes are likely to trigger inflation in food prices, as processors are forced to pay increased costs for basic ingredients such as corn and wheat."

On the same day, the makers of Hovis bread announced an 8p rise in the price of a loaf due to rising wheat prices. Consumers are now facing price increases on food across the board, from meat to milk, cheese and bread.

Beer and whisky could be next - last week drinks group Diageo warned that it was also feeling inflationary pressures on commodities, with significant rises in barley, corn, glass and aluminium.