Ethanol use causing corn shortages, spiking price of tortillas

corn.bmpTortilla prices are going up, causing hardship for the poor in Mexico, apparently because of all the use of ethanol in the U.S.

The U.S. is making lots of ethanol out of corn, to use as an alternative to gasoline — creating a shortage of corn for people wanting to make tortillas. Indeed, there some 100 more ethanol plants being planned, which will eat up even more corn — and this comes despite doubts about whether using corn ethanol for environmental reasons is really worth it. It has marginal benefits.

Besides, UC Berkeley’s Tad Patzek has long warned there isn’t enough land to grow all the needed corn, and that continued production could lead to grotesque and obscene environmental destruction.

At the same time, as we’ve discussed before, the infrastructure corn ethanol production creates may be helpful, because it paves the way for the efficient distribution of the different cellulosic ethanol, which can be made from waste, residue and plant parts other than the corn kernel itself — and is much more beneficial to the environment. In other words, the corn ethanol boom is a stop-gap measure which, while costly in the short-run, could lead to huge paybacks in a few years. (See the argument of Vinod Khosla here). Although, even here, Patzek appears to disagree; there’s not enough land to produce these alternative plant sources, either, he says.

Other notes on the “global warming” front:

–Oil and gas industries are still getting subsidized, too, which helps make those fuels cheaper, and so provides less incentive to find alternatives. House Democrats are locked in a fight to change that.

–Meanwhile, a promising bipartisan climate change bill has just been introduced by Senators John McCain (Rep.) and Barack Obama (Dem.). This is significant because they’re both strong candidates for the U.S. presidential elections next year. It calls for mandatory caps on greenhouse gas emissions from power plants, industry and oil refineries.

The legislation would require that US greenhouse gas emissions be cut by 2% every year. The senators say that as a result of these cuts, emissions would drop back to 2004 levels by 2012, and to 1990 levels by 2020.

By 2050, the equivalent of 2100 metric tonnes of carbon dioxide would be emitted each year, down from 6100 metric tonnes in 2004, they say. In contrast, the United Nations’ Kyoto Protocol, which the US has not ratified, requires that parties return their emissions to 5% below 1990 levels. Whether or not this Kyoto target will be sufficient to avoid a global temperature rise of 2°C • often used as a threshold beyond which the world would face “dangerous climate change” • is cause for debate.

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  • Ian Fernandes
    Is it just me or does Khosla's argument that corn ethanol will grease the wheels for cellulosic ethanol sound like ex-post rationalization after he realized that the benefits he had been touting for corn ethanol were illusory? In any event, cellulosic ethanol is super-expensive and super-energy intensive, and probably always will be. We have plenty of fossil fuels for transport for at least the next 50 years (including domestic coal that can be liquified) and over that time we should move to mostly electric transport with some biofuels and fossil fuels at the margins. Also, biofuels can never be as efficient or as clean as electric, because it is only possible to clean emissions completely (or near completely) when they are concentrated.
  • I thought that the grass is going to be cheapest source to make ethanol. I think Vinod Khosla invested in a ethanol producing company to make the ethanol from prarie grass. So why corn ?
  • Jim
    Everyone seems to stop at corn=good since it's "renewable." BUT, to grow corn you need nitrogen fertilizer..ammonia (NH3) is the most concentrated form of nitrogen...where does that come from? ...Natural gas (CH4) (with a bunch of CO2 emissions unless a urea plant is next door to the ammonia plant.) Anyway, methanol from corn is not renewable..it chews up fossil fuel like a madman...
  • The answer is a little more complicated than "let's just grow more corn" as Jim has already pointed out.
  • mInaz.m.p.
    My grandfather has left me 1200 acre's of land in india.SHOULD I RETURN TO INDIA AND START FARMING CORN ......
  • Barbara Porzio
    There are hundreds of thousands of people who can't eat wheat. They rely on products made of corn for their nutritional needs. As a mother of children with Celiac Disease, I am concerned what could happen to foods which now use corn, corn syrup, or corn oil for example.
    If manufacturer's switched from corn to wheat based products, those with Celiac Disease would be in big trouble.
    Why not use the grasses for ethanol and leave the corn to eat?
    For those who don't know, Celiac Disease is considered a hidden epidemic in the world today. Check out the websites. Statistics now indicate 1 out of 100 people have celiac and 95% remain undiagnosed.
    www.celiacdiseasecenter.columbia.edu
    www.celiacdisease.org
    There are many M.D. experts who are trying to educate health care providers about this hidden epidemic.
    Please, leave the corn for food, not fuel.
  • Melchor Ferrer
    Lets not kid ourselves about this ethanol craze. It is more about boosting corn producer prices and appeasing midwest and plain state constituents than solving a energy crisis. Its crazy to trade food for fule, it takes energy to grow it in the first place (see jim), and we will never make a major dent in gasoline consumption. Rather, we will give a boost to corn prices. There are other more sane solutions but the subsidy to petrol is warping the market against these possibilities.
  • Wayne Dusek
    To all crying about the price of corn. If automobiles had kept pace with the price of corn for the last 50 years a nice car would be $5000 instead of $30000, a nice house $20,000 and the price of gasoline about 40 cents per gallon. Those estimates take into account the recent doubling of corn price. Try being a farmer when the price of your main product has been basically the same price for 50 years with everything else inflating.
  • usuck
    U really f'in suck
  • DirtCrashr
    The turn towards "corn-thonol" is endangering Tequila production, as poor Mexican land that wasn't previously very valuable until the corn prices went up, is turned to that and a quick-growth cash-product, and away from the longer-term demands of growing Agave. The horrors!