CORN-BASED ETHANOL ADDS TO GLOBAL FOOD CRISIS

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FACTS OF THE WEEK:

  • In
    the past 12 months, the global corn price has doubled.
  • Because
    corn is the most common animal feed, this affects the price
    of milk, cheese, eggs, meat, as well as corn-based sweeteners
    and cereals.
  • In
    the U.S., milk prices have nearly doubled.
  • Butter
    prices in Europe have spiked by 40%.
  • Pork
    prices in China are up 20%.
  • In
    Mexico there have been riots in response to a 60% rise in the
    cost of tortillas.
  • In
    six of the past seven years, global grain consumption has exceeded
    production. As a result world grain reserves have dwindled to
    57 days. This is the lowest level of grain reserves in 34 years.
  • While
    the UN lists 34 countries as needing food aid, 30% of next year’s
    grain harvest in the U.S. will be converted to ethanol to fuel
    cars.