Ethanol policy threatens to starve the world

topic posted Mon, February 25, 2008 - 6:42 AM by  Unsubscribed
By Ernest Istook

Drought. War. Poverty.
These are leading causes of hunger, according to the United Nations. Soon we may add another.
Ethanol.

Across the globe, people are discovering it's a new contributor to world hunger. Led by the United States, governments are paying companies billions to make ethanol from corn and other crops. The result: these crops are diverted from the food supply, creating artificial shortages and higher prices.

Even record harvests haven't suppressed food prices. Instead, prices are soaring to all-time highs.
Corn that traded around $2 a bushel just two years ago is now well over $5 a bushel. The impact ripples through the food chain of milk, butter, eggs, flour, pasta and everything else, because dairy cattle, beef cattle, poultry and swine depend on the corn for their feed. When chicken feed doesn't cost chicken feed anymore, then neither does anything else.

Other grains, like wheat, are also at record highs because farmers are planting less wheat and more corn, thanks to the ethanol incentives. Less supply, plus more world demand, means higher prices for wheat products, too, from flour to bread to pasta.

Full-scale food riots may arise in some parts of the world, as more and more grain is diverted into fuel production. The Earth Policy Institute reports that ethanol-related food protests occurred last year in Mexico, Italy, Pakistan and Indonesia. A price-driven stampede killed three and injured 31 at a supermarket in China.

"We are witnessing the beginning of one of the great tragedies of history," the EPI proclaimed in January. "The United States, in a misguided effort to reduce its oil insecurity by converting grain into fuel for cars, is generating global food insecurity on a scale never seen before."

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    Re: Ethanol policy threatens to starve the world

    Mon, February 25, 2008 - 6:52 AM
    This is very true. But it is not Ethanol that is bad it is the US gov. policy of subsidizing corn based ethanol. In Brazil they make it from sugar cane stalks which are waste anyway. Really just about any country does a better job of most things. Which goes to show once again that capitalism is good but corruption and fascism is wasteful and bad.
    • Unsu...
       

      Re: Ethanol policy threatens to starve the world

      Mon, February 25, 2008 - 7:02 AM
      growing tabacco rather than food in Jamestown comes to mind. The government is fueling the stampede to irrational behavior by its foolish subsidies. And junk science which argues that the sky is falling down (human induced global warming, peaked out oil theories etc) are also assisting in this crime against humanity. As a result, farmers are paying more for grain and we are paying more for food, while others starve in less affluent countries.
  • Re: Ethanol policy threatens to starve the world

    Mon, February 25, 2008 - 9:09 AM
    Hunger occurs because we ship the food to the needy countries, and the leaders of those countries often do not let the food reach the hungry. They take the food to sell it or they dont want the hungry.

    Most of the food just goes to waste because it costs more money to ship it to the hungry people in the third world.

    There is plenty of food, just too few willing to pay for shipping, and to pay a military force like the UN to force countries to distribute the food where its needed.

    Ethanol might work for South America, but its a bad solution for the first world countries.
    • Unsu...
       

      Re: Ethanol policy threatens to starve the world

      Mon, February 25, 2008 - 9:52 AM
      "Hunger occurs because we ship the food to the needy countries, and the leaders of those countries often do not let the food reach the hungry. They take the food to sell it or they dont want the hungry."

      This has been the case to be sure, but that isn't the only reason as this article argues.

      "There is plenty of food, just too few willing to pay for shipping, and to pay a military force like the UN to force countries to distribute the food where its needed."

      I wouldn't trust the U.N. to feed my dog. They sat back and watched massive genocide occur in Africa. There is plenty of food. But if too much crop land is diverted into the production of bio fuel, this will drive up prices for farmers who need grain to feed chickens, cattle and other animals which in turn affects us all negatively. We are already paying over $100/barrel for oil and now biofuel is hitting us at the grocery store! But it isn't Americans who will suffer the most according to this article, it is the poor countries.

      Ethanol might work for South America, but its a bad solution for the first world countries.
      • Re: Ethanol policy threatens to starve the world

        Mon, February 25, 2008 - 12:35 PM
        Yeah, I agree.

        I was pointing out that any aid orgainization runs into racial problems no matter who they are, The UN has tried to do some good things, maybe its all bad, but mostly I think the UN has failed for the same reason "no child left behind" failed, nothing backing it.

        The UN has learned that its better to invest in women in local communities because the men just take off or dont reinvest in the local community as much as women.

        I guess your right about the UN, its a big beauracracy

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