Energy Prices Play Larger Role in Cost of Food than Corn
A study released today by an independent research group shows that ethanol’s impact on food prices is negligible, particularly when compared with the impact of energy costs.
The study by John Urbanchuk of LECG, LLC shows that a $1 per gallon increase in the price of gasoline results in an increase in food prices that is twice as high as a $1 increase in the price a bushel of corn.
The study also showed that distiller’s grains, a byproduct of ethanol production and a high quality livestock feed, help put downward pressure on food prices as livestock farmers purchase the grains instead of corn.
The full version of the LECG report (PDF) can be viewed at www.ethanolrfa.org.
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Good and Balanced Food and Fuel News!