Friday, May 25, 2007

CBC: Demand for plant-based ethanol driving food prices up.

A quick link-and-run. Saw this Canadian Broadcasting Corp. article today. Rising corn prices hit grocery shoppers' pocketbooks:

The rising demand for corn as a source of ethanol-blended fuel is largely to blame for increasing food costs around the world, and Canada is not immune, say industry experts.

Food prices rose 10 per cent in 2006, "driven mainly by surging prices of corn, wheat and soybean oil in the second part of the year," the International Monetary Fund said in a report.
...
A study released in May from Iowa State University shows increased prices for ethanol have already led to bigger grocery bills for the average American — an increase of $47 US compared to July 2006.

In the United States, as elsewhere, ethanol is made from corn. But corn is also used to feed chickens, hogs and cattle, which means a rise in prices for meat, eggs and dairy.

In Mexico last year, corn tortillas, a crucial source of calories for 50 million poor people, doubled in price. The increase forced the government to introduce price controls.

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