Wednesday, April 11, 2007
Biofuels Fuel Food Price Hikes
The biofuel industry - corn and ethanol producers - have been running from one media outlet to another claiming that turning corn into fuel would have no noticeable affect on food prices. But according to this story from the Globe and Mail, a major national Canadian newspaper, that is so much hogwash. Or cornwash.
According to the report, world food prices were up 10% in 2006, largely due to turning corn into ethanol, and the US Department of Agriculture estimates meat production to drop because of the cost of feed. The International Monetary Fund states: "Rising demand for biofuels will likely cause the prices of corn and soybean oil to rise further, and to move more closely with the price of crude oil, as has been the case with sugar."
Corn has such a big impact because both people and animals use it as the basis for food. Just check how many products in a store use corn syrup as a sweetener.
According to the report, world food prices were up 10% in 2006, largely due to turning corn into ethanol, and the US Department of Agriculture estimates meat production to drop because of the cost of feed. The International Monetary Fund states: "Rising demand for biofuels will likely cause the prices of corn and soybean oil to rise further, and to move more closely with the price of crude oil, as has been the case with sugar."
Corn has such a big impact because both people and animals use it as the basis for food. Just check how many products in a store use corn syrup as a sweetener.
