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Demand for Corn-Based Ethanol Raises Corn Prices, Affects Consumers
#1
I use to think Ethanol was a good way to cut our oil usage until I started seeing recent articles about.

Blame it on the Demand for Corn-Based Ethanol
By Bible Doc

What may be good news for grain farmers may not be good news for everyone else. A CBC News article notes that the demand for corn-based ethanol fuel is causing food costs to rise around the world An International Monetary Fund report quoted by CBC, says that there was a 10% increase in food prices in 2006, "driven mainly by surging prices of corn, wheat and soybean oil in the second part of the year." The report says that trend will likely continue.

Consumers may not be aware of it, but their food contains large amounts of corn, not just in the form of corn itself, but also in the meats that come from corn-fed animals. Jyoti Sahasrabkdhe, who consults with the food industry, took a trip to the grocery store with CBC News, and pointed out some of the uses of corn in the food system: the sushi in California rolls contains corn protein, garlic sausage probably contains cornstarch, and the animals themselves that were fed corn. "Corn," said Sahasrabkdhe, "has so many uses throughout the food chain as feed for animals, as an ingredient on its own. I don't know that a relatively inexpensive substitute for all those functions could be found."

The other side of the issue is, of course, the positive effect that rising prices are having for farmers. Farmer Brett Stimpson of Alberta told CBC that "We look at it as a business opportunity...prices are strong."

Rising prices are not a problem just for Canada. According to a study from Iowa State University, reported by CBC, the average American has seen an increase of $47 in the grocery bill compared to about a year ago. The United States is seeing an increase in the cost of meat, eggs, and dairy, because of the use of corn as feed in those segments of the economy. Mexicans have seen corn tortillas double in price, according to CBC.

The increased popularity of ethanol is based on the belief that ethanol is a cleaner fuel that releases emissions that are thought to do less damage to the atmosphere than the emissions released by regular gas. That belief is being called into question, however. A recent study by Environment Canada found no real difference between emissions from regular unleaded gasoline and those from 10 percent ethanol fuel. Another controversy surrounds the assertion by environmental groups that producing ethanol takes more energy than can be derived from the end product.

Source:

http://www.cbc.ca/comsumer/story/2007/05/22/corn.html

http://www.associatedcontent.com/article...aises.html
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