The currently steady increasing trend in fuel prices and the mismatch between the energy supplyrna'nd demand situations in Ethiopia is leading the country to be guided by the general direction ofrnenergy conservation and renewable energy source utilization. Wide range of biofuel developmentrnworks are undergoing and one of its indications is the designing of biofuel development andrnutilization strategy by the Federal Ministry of Mines and Energy. Global Energy Ethiopia Inc. isrnone of the foreign private investment companies that came to Ethiopia due to investmentrnopportunities created on the investment of biofuels. Then the study was conducted to assess therneffects of the investment practices of the Global Energy Ethiopia on the food availability andrnaccess of the rural households from the perspective of major food production in Damot WoidernWoreda. Wolaita Zone, Ethiopia. Data were collected through household survey from 96 ruralrnhouseholds and semi-structured interviews are also conducted with the key informant interviewsrnjl:om selected rural farm households, workers of the company and respective government bodies.rnDescriptive statistics such as mean, percentage and cross tabulation were some of the methodsrnused to analyze data. The study identified that; even though the investment practice -had somernpositive effects like provision of incentives and trainings, and used as coping mechanism forrndestruction of food crop land by monkeys and apes, it has the overall negative effects on foodrnavailability and access in the study area due to the reducing effect on land for major food crops,rnland and income. So the results suggest that the production of biofuels feedstock based onrncontract (community) farming system by the private investment company is not sustainable wayrnof biofuels feedstock production in the study area. To this end, promotion of local communityrnowned biofuel development projects for rural economic and energy security is recommended.rnKey Words: Biofllels, Food availability, Food access