The changes have arisen because of the significant rise in demand from China, India and other developing countries, along with the rise in their economic activity. Conversely, global oil production has tended to stagnate. The global race to provide alternative energy sources has triggered soaring international food prices.
In the first eight months of 2007, average international food prices – especially corn, wheat and soybean – rose by up to 10.5%. Biofuel production has been blamed as one of the reasons for the price hikes. Biofuel has raised the demand for corn and soybean. The global oil price hikes have provided the impetus for biofuel production.