|   izers and pesticides, the production of which is particularly
      energy demanding (World Bank, 2007). Increasing energy
      prices would thus raise production costs, which would be
      translated into higher commodity prices both regionally and
      internationally. As the share of energy in production costs is
      substantially higher for crops than for livestock, crop production
      is particularly affected by changing energy prices
      (OECD-FAO, 2006). However, since intensive livestock
      production is strongly based on cereals and oilseed meal,
      livestock products will be affected as well, although to a
      lesser extent. Higher energy prices are therefore expected
      to reduce trade volumes of most commodities, particularly
      crops, all the more so because transport cost will also increase.
      On the other hand, a further increase in crude oil
      prices may promote a shift towards bioenergy production.
 5.4.3 Bioenergy
 Developments in bioenergy production represent a major
      uncertainty for agricultural production and markets, and
      for achieving SDGs in general. High energy prices combined
      with increased biofuel production from food crops
      could lead to large increases in food crop prices by affecting
      both supply and demand (World Bank, 2007). Commodity
      prices for crops such as maize, wheat, oilseed and sugar
      may rise drastically (by 30-75%) (World Bank, 2007) and
      competition between food and feed uses and nonfood uses
      for particular crop sectors may result in major production
      and market changes (OECD-FAO, 2006). Not only would
      bioenergy crops be affected; through cross-commodity influence,
      production and availability of traditional foods
      and feeds might decrease. Furthermore, increased bioenergy
      production might accelerate land conversion from forest to
      agricultural use or from extensive to intensive production,
      which mayâtogether with the escalating demand for livestock
      productsâconsiderably affect the environment negatively
      through deforestation and degradation of land and
 water resources.
 It is important to note that the currently observed boom
      in producing bioenergy is mostly based on public support
      and encouragement (OECD-FAO, 2006). Such support
      may create market distortions that need to be better understood
      before pertinent policies are put in place. However,
      the economics of bioenergy, and particularly its positive and
      negative externalities, are not yet well understood and depend
      critically on local circumstances (Avato, 2007). These
      knowledge gaps related to increased bioenergy production
      call for investment in AKST research and development to
      produce more sustainable technologies that are adapted to
      smallholder farming systems. Research needs to develop second-
      generation biofuels that rely on agricultural and timber
      wastes instead of food crops, thus reducing the pressure on
      food crop prices and possibly contributing to the supply of
      more environmentally friendly supplies of biofuels (World
      Bank, 2007).
 5.4.4 Climate change
 Global warming is one of the areas of greatest uncertainty
      for agriculture (World Bank, 2007). So far, not all effects of
      climate change on agricultural production and yields have
      been included in cropâclimate models. Nonlinearity of yield
      response to temperature above threshold levels can result
 |  |   in high losses with moderate temperature increases that are
      not yet considered. The combined effect of higher average
      temperatures plus variability of temperature and precipitation,
      more frequent and intense droughts and floods, and
      reduced availability of water for irrigation is likely to affect
      yields negatively, even globally, and can be devastating
      for agriculture in many tropical regions. Assumptions about
      the magnitude of the effect of carbon fertilization are still
      debated although they are critical for predicting whether
      crop yields will increase under elevated CO2 concentrations.
      Climate change is also increasing production risks in many
      farming systems, reducing the ability of farmers and rural
      societies to manage risks on their own.Uncertainty regarding what climatic changes to expect is
      even higher in view of increasing evidence that these changes
      are happening at a pace faster than that until recently foreseen
      (World Bank, 2007). Proactive strategies and research
      are therefore crucial to face these uncertainties.
 
 5.4.5 Genetically modified organisms (GMOs)
 Worldwide, many people are eating genetically modified
      foods with no adverse affects on human health having been
      reported in peer-reviewed scientific literature. However,
      there could still be long-term effects on human health that
      have not yet been detected (genetically modified foods have
      been available for fewer than ten years). Although many
      field trials have been held, and in some parts of the world
      there has been large-scale commercial planting of genetically
      modified crops, work done has been insufficient to fully
      assess environmental effects, especially in the biodiversityrich
      tropics (OECD, 2000). Modern biotechnology has
      opened up new avenues and opportunities in a wide range
      of sectors, from agriculture to pharmaceutical production.
      Nevertheless, the scale of the global debate on GMOs is
      unprecedented. This debate, which is intensive and at times
      emotionally charged, has polarized scientists, food producers,
      consumers and public interest groups as well as governments
      and policy makers (FAO, 2001). Today, it is not clear
      to what extent the incredibly rapid expansion of genetically
      modified crop production and use in animal (particularly
      fish) production will continue, particularly in the developing
      world. Due to the intensity of the debate over GMOs,
      new discoveries may have massive effects, particularly on
      the demand side. In addition, neglected investment of GMO
      developers in traits and crops that will benefit the poor and
      weak regulatory capacity and systems fuel public distrust
      and ignite opposition of various interest groups to widespread
      GMO use (World Bank, 2007).
 People in general are directly interested in technological
      developments, yet obstacles to their participating in making
      decisions must be acknowledged and overcome. The public
      has not been adequately informed about applying gene technology
      to food production and the potential consequences
      on consumer health or the environment. With the confusing
      array of claims, counterclaims, scientific disagreement
      and misrepresentation of research that is present in the media,
      the public is losing faith in scientists and government.
      Widely communicated, accurate and objective assessments
      of the benefits and risks associated with genetic technologies
      should involve all stakeholders. Experts have the ethical
      obligation to be proactive and to communicate in terms
 |