Ethanol versus Food

Ethanol versus Food

Postby Oscar » Thu Nov 29, 2007 10:13 am

Wadena News, December 5, 2007

Ethanol versus Food

To the Editor,

The Earth's 800 million people using fossil fuels or ethanol to power their cars, trucks, planes etc, [in the developed world] will be competing against the world's poorest 2 billion people who need food to simply survive.

In 2006, 20% of the U.S. corn crop was used to produce ethanol. That 20% displaced about 2 % of the total fuel used in their cars. In a country engaged in armed struggle for oil, what does that portend for the future of corn used for food?

Mark Hill, food partner in the business advisory firm Deloitte, stated that the U.S. swing to ethanol production has doubled the price of corn and wheat in most countries. Grain producers in North America can feel justified in saying, "Well, it is just about time." But, Mr. Hill goes on to say higher grain prices, as usual, will trigger food price increases. In particular pork and chicken, that are fed mostly grain. [Trouble for those producers.]

Already food prices in India have risen 11% in a year. China has halted the growing of corn for ethanol after an increase in the price of food staples, particularly pork, which soared by 42%.

The Organization for Economic Co-operation and Development, speaking for the world's 30 richest nations, suggests that food prices over the next decade will rise 20 to 50%. The world's largest food retailer, Nestle, expects the price of food will remain high for the foreseeable future.

The UN World Food Program [WFP] feeds about 90 million people, mostly with U.S. corn. The WFP believes that another 850 million are undernourished, and that these numbers will increase.

The U.S. Department of Agriculture states global grain supplies-- outside of the era of major wars -- are the lowest in a century or longer.

About a year ago, the U.S. had fewer than 100 ethanol plants. There are now 50 more being built, and another 100 in the planning stage. India intends to plant 35 million acres for biofuel crops. Brazil could plant 300 million acres. Southern Africa is claiming it may have 1 billion acres available for biofuels. Indonesia intends to overtake Malaysia's palm oil production from the present 19 million to a planned 65 million acres by 2025.

There is hope for the future. But it will require immediate major research and adoption of new net energy technologies, combined with a clear plan for water and energy conservation.

Would it be wise for Canadian producers to take the "high road" and continue growing grain for food rather than grain for ethanol?

Leo Kurtenbach,
Box 268, Cudworth, Sask., S0K 1B0
Phone: 306-256-3638
Oscar
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