Global national re: the dark side of ethanol

[dalek]

I just got second-hand news about a report on Global National tonight about ethanol where I understand they claim that encouraging ethanol production is resulting in shortages of corn available to feed people and they suggest that low-income families could starve or be unable to afford food as a result. Has anybody seen this that can add to my understanding of their story?

My two responses so far: Where are the market signals telling us we have a corn shortage? The market is telling us the exact opposite. US corn dumped across the border tells us exactly the opposite. And secondly, even if we do move into a shortage situation as ethanol expands, buyers of corn for human consumption can increase their bids for corn to compete with ethanol and, IF NOBODY ELSE in the chain decides to profiteer from that increase (unlikely I know but that's not ethanols fault), it will have a negligible impact on the price of corn-based foods in the retail sector due to the ridiculously low share of the food dollar corn producers receive.

Anyway, if anyone has seen it I'd like to know more. You can contact Global National at globalnational@canada.com. Also there is a poll up at http://www.canada.com/globaltv/national/index.html, Do you feel biofuel is a good alternative to petroleum? Which is currently running at 58% yes and 42% no, which suggests to me that the story has already affected the thoughts of those who are responding because that's a much higher negative opinion of biofuels than anything I've seen.

[grassfarmer]

I saw it but wasn't paying too much attention, the jist of it was that world grain stocks are at a near record low(which I believe to be the case) hence the thought that producing ethanol may make starving Africans hungrier.
Personally I think Canada should shut down it's feedlot industry, start to manage its grass and rough pastures properly which would allow us to produce as much beef as we do now. Bonus is it would be healthier too. That would leave plenty room for ethanol. Of course it won't likely come to that as overfed westerners will get first call on feed grains to push through feedlot cattle before they eat the beef. 40 gallons of oil in the average North American steers production I think the figure is.

[cottonpicken]

Dalek you are an idiot
-29,000 children STARVE TO DEATH EVERY DAY in this world!!!

[cris]

The way I understand it, most of the poor starving countries live on subsistance agriculture. They grow the crop, as little as it may be, and use some and sell the rest. The over subsidised grain actually reduces the net income of the farmers and therefore the rest of the economy. The better solution is to raise the grain prices by cutting subsidies, and sponser the governments that are working towards democratic reforms.

[ric]

Over 30 years ago when I got on this Ag tread mill there were thousands of children starving everyday. We donated grain to the cause. Now we have large corps telling us geneticaly modified, max inputs, produce more and we can feed the starving thousands. (And make the shareholders money) We have produced more, much more and now with the help of off farm jobs we might be able to donate grain and help the starving children the odd year. My guess is in 30 years there will still be thousands of starving children dying everyday. Hopefully not to many in Canada.

[dalek]

I doubt that there's been a child starve in the past 50 years because of a worldwide shortage of food. Children starve because dictators use food as a weapon, or because they sell food the people need so they can keep themselves swaddled in gold and hookers, or people starve because they can't harvest crops in a hail of bullets.

[rainman]

This is interesting because the oil companies are pumping millions of litres of fresh water down wells to get excess oil, which is contaminating ground water as well much of this water is lost from the whole water cycle. I have not seen this global news piece, but I think it is time that people in North America understand the importance of food. It's no big deal for people to spend $1.15/litre on fuel, but they can go to the store and buy a loaf of bread for the same price. Needs and wants are mixed up here.