This project was commissioned by DFID to examine the potential pros and cons of biofuel production and trade for agricultural growth and poverty reduction in developing countries. The project assessed the potential contribution to agricultural sector development and economic opportunities for poor people in rural areas. What might future scenarios of enhanced biofuel production mean for small farmers, agricultural labourers, the non-farm economy and food security? What might the impact be on the dynamics of rural growth and poverty reduction? Will a push on biofuels offer a lifeline to rural economies, or will the opportunities and benefits largely bypass poor people?
This paper examines the scope for biofuels production and trade to contribute to agricultural growth and poverty reduction in developing countries.