Forum Fodder: Definitive proof that ethanol is not creating a food corn shortage?
GM Inside News forum member HoosierRon has posted what he feels is "definitive proof that ethanol is not creating a food corn shortage." He goes on to give real raw data to support his claims. His data concentrates on the amount of corn produced in the U.S. and the amount of ethanol produced in the U.S. His data seems to indicate that there is more corn available for food now than there ever has been before.
This type of data is good to keep an eye on, but it hardly offers definitive proof that ethanol fuel is not raising corn prices. Instead, it shows that there is plenty of corn available for use as either ethanol or food. Additionally, the data does not indicate whether farmers who previously planted other crops are instead choosing to plant corn. None of this is to say that ethanol is creating a food shortage, just that more data is needed before any fair conclusion can be reached.
As is often stated, making ethanol from corn is not very efficient, but hopefully soon we will start seeing cellulosic ethanol take its place as an alternative to petroleum.
[Source: GM Inside News]
Reader Comments (Page 1 of 1)
frank78 7:28PM (3/04/2008)
The cost of corn itself is not much of a worry. The increase in prices of many OTHER foods as a result of this bad corn ethanol policy is the concern worth caring about.
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texmln 8:07PM (3/04/2008)
So, oil goes up 4x in the last five years and corn goes up 2x, and it's ethanol driving food inflation? Hate to tell you the price of oil drives a LOT more of the price of food than corn. Take a look at the inflation adjusted price of corn today. It's at one of the lowest points in history. Oil is at its inflation adjusted high. The argument against ethanol simply doesn't add up.
If the availability of corn is so important to you, would you rather have multiple sources of demand that ensure a stable price, stable profits and therefore strong, stable supply of this commodity or would you rather have only one source of demand, variable prices, and scattered corn production?
Let the farmers make a decent return and they will produce more corn than you know what to do with, ethanol consumption included.
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rgseidl 8:05PM (3/04/2008)
Corn ethanol isn't causing a food shortage in the US, it's causing world market prices of sugar-rich white corn varieties to rise. The difference may be small, but for the poorest of the poor in places like Mexico, it quickly translates into real hardship.
Surplus yellow corn in the US is used as animal feed rather than exported.
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Wildgoosechase 12:41AM (3/05/2008)
The greens are amazing to me, for years they have lamented on how corn is such a lousey foodstock and is unhealthy for cattle. The argument is that because of their corn diet they require antibiotics, blah, blah blah.... Now if corn prices rise and become too expensive to use as a feed stock it is the end of the world. Make up your mind.
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mus302 4:57AM (3/05/2008)
HoosierRon linked an article I wrote some time back as a source for some of his information. In it I looked at the effect of the shift from soybeans to corn acres and noted the feed grains that increased acreage last year.
http://americanfuels.blogspot.com/2008/01/is-ethanol-taking-food-out-of-peoples.html
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studemax 11:20AM (3/05/2008)
Despite all the "raw data", ethanol is a bad idea, and the backlash will continue to build.
The greenies latched onto the wrong answer.
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dwf 11:45AM (3/05/2008)
The increased cost of gas and diesel makes it more expensive to plant, harvest, and transport all food products, and that is what is making food more expensive. That, plus speculators on the commodities exchanges that bid up the "futures" prices based on anything that hits the news, just so they can make a buck.
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Bob Moffitt (Bob from ALAMN) 12:06PM (3/05/2008)
"Corn ethanol isn't causing a food shortage in the US, it's causing world market prices of sugar-rich white corn varieties to rise. The difference may be small, but for the poorest of the poor in places like Mexico, it quickly translates into real hardship. Surplus yellow corn in the US is used as animal feed rather than exported."
Your sources? The US exports HUGE amounts of yellow corn. White corn is produced in Mexico for the local market -- there is little if any connection between yellow dent corn prices in the US and the price of tortillas in Mexico City. It's just another anti-ethanol urban myth.
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Wise Golden 1:11PM (3/05/2008)
Corn inflation is responsable for 4% of the inflation related to food products. Oil and currency devaluation is responsable for 96% of food inflation. The comments that corn is plentiful is correct. It is more plentiful today than it was 5 or 10 years ago.
Meanwhile, ethanol has applied downward pressure to fuel prices even though they have risen. Without ethanol, gas would likely be $4 today.
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psarhjinian 2:05PM (3/05/2008)
I don't think "the greenies" latched onto ethanol. I'm a greenie, and I didn't. Most of the greenies I know don't, either.
Big business (agribusiness, mostly, but there are automakers guilty of this, too) uses ethanol as a greenwash. It's a low-cost option _for suppliers_ to look green.
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kalins1 9:19PM (3/05/2008)
Don't we have a surplus of corn syrup globally. We use corn syrup in EVERYTHING as a sweetener, but we still have a surplus. I don't think ethanol will make a dent in the surplus. Corn is actually not very good for us is it?
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Paul Smith 11:58AM (3/12/2008)
Pilgrim's Pride Cutting 1,100 Jobs, Blames Ethanol
http://money.cnn.com/news/newsfeeds/articles/djf500/200803120942DOWJONESDJONLINE000649_FORTUNE5.htm
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David Tao 7:38PM (5/16/2008)
Hey Paul, that Pilgrim's Pride article on CNN must not have been PC enough because it's gone now. Found it elsewhere though.
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