Re: Cars grabbing World’s grain supply…
A really weird artcile, this – Cars are grabbing world’s grain supply
…Cars, not people, will claim most of the increase in world grain consumption this year. The US Department of Agriculture projects that world grain use will grow by 20 million tons in 2006. Of this, 14 million tons will be used to produce fuel for cars in the United States, leaving only 6 million tons to satisfy the world’s growing food needs.
….As the price of oil climbs, it becomes increasingly profitable to convert farm commodities into automotive fuel, either ethanol or biodiesel. In effect, the price of oil becomes the support price for food commodities. Whenever the food value of a commodity drops below its fuel value, the market will convert it into fuel.
…The profitability of crop-based fuel production has created an investment juggernaut. With a US ethanol subsidy of 51¢ per gallon in effect until 2010, and with oil priced at $70 per barrel, distilling fuel alcohol from corn promises huge profits for years to come.
…The US investment in biofuel production in response to runaway oil prices is spiraling out of control, threatening to draw grain away from the production of beef, pork, poultry, milk, and eggs. And, most seriously, the vast number of distilleries in operation, under construction, and in the planning stages threatens to reduce grain available for direct human consumption. Simply put, the stage is being set for a head-on collision between the world’s 800 million affluent automobile owners and food consumers.
Probably, a bit of scare mongering in this, but I find the whole thing warped beyond disbelief.