Does ethanol drive higher food prices?

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In a recent interview with AgriTalk Radio, Geoff Cooper, vice president for research and analysis, Renewable Fuels Association, says there is no statistical evidence that ethanol demand for corn is a major factor in rising retail food prices.

Ethanol “must be put into context with a dozen or15 other major factors that are driving food prices,” says Cooper. “It is a complex set of  interrelated factors that are driving food prices.”

In addition, one third of each bushel of corn comes back to the livestock industry in the form of distillers’ dried grains with solubles, says Cooper.



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Berkley Gray    
Staunton, VA  |  July, 27, 2011 at 10:45 AM

Mr. Cooper and the host seem to think that any opionion not reflecting a positive view of the ethanol industry is not factual or relavent - interesting. I don't think that most of us in the livestock, poultry and feed industry really believe that the only reason for food price increases is the supply and price of corn but in my opinion it qualifies as one of the major reasons for the increases. The price of feed is a major cost factor in the cost of meat, milk and eggs and that cost has escalated with the use of corn for fuel. Yes we do use DDGS in feed and I believe everyone in our industry understands where most of the DDGS come from. DDGS come to the industry at a hefty price in todays market and a large amount of DDGS are exported and not availabe to the US livestock industry.

matt    
pa  |  July, 27, 2011 at 11:44 AM

Distillers grains do not replace corn in a livestock diet, we feed corn to livestock as an energy source, you can't just replace one with the other.

Ronald S. Brakke    
Dallas, TX  |  July, 27, 2011 at 01:09 PM

What a one sided view!! Ethanol clearly impacts the cost of food directly and indirectly.


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