Oil Change International

Exposing the true costs of fossil fuels

Biofuels Increase Food Prices

The debate over biofuels is set to become one of the most defining issues of our times. Put simply it will be a battle between the people being able to drive and those being able to eat.

Of course it’s not that simple, but the warning signs are there already. Because the demand for biofuels is already making food more expensive.

Over the last year wholesale corn prices in the US have roughly doubled. The reason for the surging price, reports the BBC, is increasing demand from refineries that are buying corn to turn it into ethanol.

“We are using 20% of our corn for ethanol,” says Roy Huckabay, executive vice president of the Linn Group, which advises commodity investors. “When the energy markets went bananas over the last year, the value of corn as an energy source sky-rocketed.”

This demand for biofuels will have consequences many people are just beginning to understand. In Mexico, there have already been street demonstrations about the rising cost of tortillas, which are made from corn. In Illinois, the price of land is increasing. One thing is certain the price of food will increase too. One farmer told the BBC: “”I think that cheap food is history”.

Comments (2)

  1. Harold Denenberg says:

    Another gimmick to get money out of people.The government is paying millions of bucks to pay people for not planting crops on millions of acres of land.We need to lower tarrifs on Brazilion alcohol and allow some imported alcohol in.This would take pressure off the price of corn & help lower the price of oil.Once we start policies of conservation (mandatory increase of cars & trucks with better milage & flexible fuels)we will start getting a cleaner environment and more economical energy prices.

  2. The US of A need not plant crops for transport fuels. All they have to do import greengold fuels, lubricants and fluids from the third world country like the Philippines. Visit: http://www.enkocogreengold.zoomshare.com

    By doing so, americans can rescue a distress planet with their civilisation in trouble from global warming.

    Happy motoring!