Tagged: food costs

World Bank Report Confirms: Biofuels Behind Food Price Hikes

A leaked report by the World Bank, purportedly confirms that biofuels, not increased demand from India and China, has caused the world’s food prices to increase by 75%.

President Bush has linked higher food prices to higher demand from India and China, but the leaked World Bank study disputes that: “Rapid income growth in developing countries has not led to large increases in global grain consumption and was not a major factor responsible for the large price increases

The news also suggests that the report was finished back in April, but was held back:

Senior development sources believe the report, completed in April, has not been published to avoid embarrassing President George Bush.

It all sounds to corny to me, hehehe….

Corn Industry Says Don’t Blame Us, Again

Here we go again. The corn industry, this time under the guise of the New Fuels Alliance and FoodPriceTruth.org, are saying that higher food prices, in particular, chicken, are NOT a result of more corn going to corn based biofuels instead of chicken feed.

Yeah, right. Same old story.

More Warnings Of Food Riots

Pending global food crisis – Due to corn and Ethanol

Iowa Corn Promotion Board says don’t blame us for rising food prices!

Iowa Corn Promotion Board and the Iowa Corn Growers Association are apparently going to launch a consumer-education campaign that says that they are not responsible for food prices going up.

I would partly agree, in that they are not entirely responsible. Of course oil prices, labor costs, transportation costs, etc share some of the blame. But the article ends by advocating the supposedly low extra cost of corn in order to reduce our dependance on foreign oil. [Gee thanks!! So what kind of gas guzzling truck do you drive? ] As more and more farmers switch to growing corn for biofuel rather than food production, food prices have to go up.

Ethanol producers in this country receive a tax credit of 51 cents a gallon, on top of billions of dollars in direct corn subsidies. (In 2005, the most recent year for which figures are available, it was $9 billion.) In Europe biodiesel subsidies can approach $2 a gallon. 

Where does the feed for chicken, pigs, and cattle come from? If farmers can get more money for sending the corn to ethanol distilleries rather than food production facilities, the economics of supply and demand would dictate that food prices would go up. Corn is used everywhere. Less corn for everyday staples, means higher costs for everyday staples.

And as the National Corn Growers Association themselves say, “Ethanol production makes huge amounts of the nation’s corn disappear”.

Ethanol subsidies causing NYC bagel prices to go up

Bagels are costing alot more these days. Why? Ethanol subsidies, paid for by our taxes, allow for grain, that normally go towards food and animal feed, to go to ethanol distilleries.

From ENS, “U.S. taxpayers, by subsidizing the conversion of grain into ethanol, are in effect financing a rise in their own food prices. It is time to end the subsidy for converting food into fuel and to do it quickly before the deteriorating world food situation spirals out of control. ”

All this while in Haiti, they’re literally eating dirt, because food prices have gone up.

Corn based ethanol production causing global food insecurity