DISCUSSION

Report Questions the True Cost of Ethanol

Written by George Anderson

By George Anderson

The nation's demand for ethanol and producers' reliance on using corn as a fuel source has increased food prices and raised the real possibility of food shortages in the future, according to a report by the Earth Policy Institute.

"One of the consequences of this enormous shift of grain is that hunger and malnutrition, which were supposed to be declining during this period, haven't," Lester Brown, president of the Earth Policy Institute told The Associated Press. "They are now projecting that the 800 million people (living in hunger) will number 1.2 billion by 2025."

Matthew Hartwig, a spokesperson for the Renewable Fuels Association, said the demand for corn to produce ethanol may be driving up food prices but took issue with the Earth Policy Institute's conclusions.

"To single out ethanol and biofuels and place the blame for all the ills of the world is a terribly myopic approach to a complex issue," he said.

Mr. Hartwig suggested that high oil prices also influence food prices.

"Oil prices have gone up 40 or 50 percent and it takes a great deal of oil in particular to transport and process food," he said.

Discussion Questions: How much of an impact is ethanol production having on food prices? How much of an impact are oil prices having on the cost of food? Do you see a potential for global food shortages as a result of ethanol production? Are there other plant sources for ethanol/biofuels that would help reduce the nation's dependence on oil and maintain food supplies at the same time?

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