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Ethanol Isn’t Only Reason For Food Price Spikes
By Mr Ethanol | October 9, 2007

Arkansas Business Online:
The cost of food spiked right on cue last year when economists warned that the country’s thirst for ethanol would drive up the cost of the grain used to feed livestock for meat, dairy and other foods.
But economists say it isn’t all ethanol’s fault, and warn that Americans have yet to feel the full force of the corn-based fuel additive on food prices.
“We have a huge expansion under way,” Iowa State agricultural economist Robert Wisner said. “That will almost certainly tighten grain supplies.” Feed is one of the largest costs in the livestock and dairy industry, he said.
Corn prices started rising sharply in September 2006 as the ethanol industry’s demand grew, driven by high oil prices and a federal mandate for the U.S. to use 7 billion gallons of renewable fuels annually by 2012.
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