Food vs biofuel: the myth of the corn shortage

Critics of corn ethanol have stated that corn prices are rising because ethanol demand is creating a corn shortages for other uses, such as livestock feed, or corn for processing into food.

In 2004, US corn production was 11 billion bushels, of which 6 billion bushels were used for livestock, 1.3 billion for fuel, and 3.7 billion for processing into food or exported.

In 2007, US corn production is projected at 13.5 billion bushels, of which 2.1 billion bushels will be used for fuel, leaving 6 billion for livestock and 5.4 billion for processing into food or exported.

Not to mention that 31% of corn used for ethanol processing produces distillers grains, which are used as livestock feed — equivalent to another 650 million bushels of corn.

Where is the corn shortage?

(Sources: USDA, Energy Information Administration, ethanolmarket.com)

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