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Non-Tech : $2 or higher gas - Can ethanol make a comeback?
DAR 34.83+0.3%3:59 PM EST
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To: richardred who wrote (2618)1/28/2008 4:24:15 PM
From: Archie Meeties   of 2801
 
Well it's become "common knowledge" that ethanol is the reason for higher food prices. However,

About 2 cents of the cost of a can of beer come from the barley costs.

6 cents of the cost of a box of corn flakes comes from the cost of corn.

30 cents per pound of steak come from corn.

Also God didn't design cows to eat corn. They're supposed to eat grass, and if fed corn, develop ulcers and require antibiotics.

As the amount of corn that goes livestock feed is about 50% of the annual corn crop, dwarfing the amount used for ethanol, I think the right way to think of things is to say "Animals fed unnatural diet of corn drive up the price of grains and thus the price of food."

Although tbh, corn prices could double and the effect on household expenditures on food would be way less than a 1% drain of disposable income. (Food = 8% of disposable US income, of that 4% is eating out).
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