Hostname: page-component-586b7cd67f-tf8b9 Total loading time: 0 Render date: 2024-11-28T07:05:23.889Z Has data issue: false hasContentIssue false
  • English
  • Français

The Food versus Fuel Debate: Implications for Consumers

Published online by Cambridge University Press:  26 January 2015

R. Wes Harrison
R. Wes Harrison*
Affiliation:
Department of Agricultural Economics and Agribusiness, Louisiana State University Agricultural Center, Baton Rouge, LA
Get access Rights & Permissions [Opens in a new window]

Abstract

The effects of biofuel production on commodity prices and their transmission to retail food prices are discussed. Factors driving higher commodity prices are tight global supplies and increased demand of corn ethanol in the short term. Evidence suggests that higher corn prices contribute to food price inflation for some food items. These include eggs, poultry, pork, beef and milk. The findings imply that food price inflation for these items is related to increased production of corn ethanol, primarily because of high oil prices. Higher oil prices also increase fuel and energy costs, which increase marketing costs for all food categories.

Keywords

Biofuelsfood pricesethanolQ420Q130
Type
Invited Paper Sessions
Information
Journal of Agricultural and Applied Economics , Volume 41 , Issue 2 , August 2009 , pp. 493 - 500
Copyright
Copyright © Southern Agricultural Economics Association 2009

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Abbott, P.C., Hurt, C., and Tyner, W.E. “What's Driving Food Prices?” Farm Foundation Issue Report, July 2008.Google Scholar
Glauber, J. “Statement of Joseph Glauber, Chief Economist before the Joint Economic Committee, U.S. Congress ” May 2008.Google Scholar
Tokgoz, S., Elobbeid, A., Fabiosa, J., Hayes, D., Babcock, B., and Yu, T.-H., Dong, F., Hart, C., and Beghin, J. “Emerging Biofuels: Outlook of Effects on U.S. Grain, Oilseed, and Livestock Markets.” CARD Staff Report 07-SR 101, Center for Agriculture and Rural Development, Iowa State University, Ames, IA, May 2007.Google Scholar
Trostle, R. “Global Agricultural Supply and Demand: Factors Contributing to the Recent Increases in Food Commodity Prices.” United States Department of Agriculture, Economic Research Service. WRS-0801, July 2008.Google Scholar