Ethanol Issues
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Food versus Fuel – Domestic
Food versus Fuel – International
Energy Balance
Community Impacts
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Food vs. Fuel
Domestic
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Food Losses at the Retail, Foodservice and
Consumer Levels, 1995
Commodity
Grain Products
Fruit
Vegetables
Dairy Products
Meat, Poultry & Fish
Eggs
Caloric Sweeteners
Other
Total
Edible Food Supply *
(million pounds)
45,606
48,338
63,077
76,276
51,466
7,918
38,827
24,374
355,883
Percent
Loss
32%
23
25
32
16
31
31
30
27%
* Excludes non-edible food parts.
Source: Economics Research Service, USDA
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U.S. food supply is 3,800
calories per person per day
(USDA, 1994). If the avg.
person needs 2,000 calories
per day, the excess calories
could provide all of the caloric
needs of:
1) Sudan
2) Somalia
3) Chad
4) Central African
Republic
5) Democratic
Republic of Congo
6) Rwanda
7) Kenya
8) Uganda
9) Ethiopia
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Food vs. Fuel
International
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Impact of Commodity Prices on Consumer Food Budgets
Base Scenario
Income
Total food expenditure
Food cost as % of income
Staples as % of food spending
Expenditures on staples
High-income
Countries
Low-Income, FoodDeficit Countries
$40,000
$4,000
10.0%
20%
$800
$800
$400
50%
70%
$280
New Scenario: 50% price increase in staples,
Expenditures on staples
$1,200
Total food expenditure
$4,400
Food cost as % of income
11%
$420
$540
67.5%
These are illustrative food budgets that characterize the situations for consumers in high- and lowincome countries.
Source: Global Agricultural Supply and Demand: Factors Contributing to the Recent Increase in Food
Commodity Prices/WFS-0801, Economic Research Service, USDA.
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Policy Changes to Discourage
Exports (keep within country)
1.
2.
3.
4.
5.
6.
Eliminate Export Subsidies – China
Implement Export Taxes – China, Argentina, Russian,
Kazakhstan, Malaysia
Export Restriction (quantitative) – Argentina, Ukraine, India,
Vietnam
Export Bans – Ukraine, Serbia, India, Egypt, Cambodia,
Vietnam, Indonesia, Kazakhstan
Reduced Import Tariffs – India, Indonesia, Serbia, Thailand,
EU, Korean, Mongolia
Subsidize Consumers – Morocco, Venezuela
Source: Global Agricultural Supply and Demand: Factors Contributing to the
Recent Increase in Food Commodity Prices/WFS-0801, Economic
Research Service, USDA.
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Energy Balance
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Btu Used to Make One Btu at the
Fuel Pump *
Total
Btu
Btu
Corn Ethanol **
1.75
Cellulosic Ethanol2.25
Gasoline
1.23
Fossil
Fuel
.74
.10
1.23
* Argonne National Laboratory
** Dry Mill
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British Thermal Units Generated
from One Btu of Fossil Fuels *
Corn Ethanol
Gasoline
Electricity
Coal
Cellulosic Ethanol 10.31
Btu
1.36
.81
.45
.98
* Argonne National Laboratory
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Community Impact
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Job Impact – 100 MGY Ethanol Plant
Ethanol Plant – One job per 5,176 ac. Corn
Total – One job per 1,400 acres of Corn
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