Berlin  - Germany's government rejected Tuesday claims that fuel crops were causing the worldwide spike in food prices, but said it would ease farm health rules to encourage more meat production.

Agriculture Minister Horst Seehofer said after talks in Berlin that Germany could not achieve its goals in fighting climate change if it did not grow fuel. He defended the practice, saying only 2 per cent of croplands worldwide were being used to produce ethanol.

He said Berlin would unveil by July a policy on ending the world food crisis.

He said Berlin would seek rule changes so that ground-up animal remains could be fed to pigs and poultry.

Eight years ago, European Union (EU) nations banned the use of ground-up animal carcasses as cheap feed after discovering that cattle were catching bovine spongiform encephalopathy (BSE) from eating the minced brains of dead cows.

In April the EU relaxed rules on feeding fishmeal to calves and lambs. (dpa)