Monday, April 02, 2007

Global Climate change is raising the price of dinner

Due to the current hot topic of global climate, the world is in a scramble to find an alternative to oil and coal. Recent attention has been focused on corn based ethanol as a alternative. The surge in use of corn as a fuel is having a huge impact on the US agricultural market. Not only are farmers growing more corn but they are selling it at a much higher price. Corn is the primary ingredient of cattle feed in the US, and the inflated prices are making it harder for cattle ranchers to properly feed their animals. It is reported that livestock are weighing in 10-20 pounds lower than usual. Lower weights mean a lower supply of beef and higher prices to the consumer.

As of now there has not been any notable rise in prices for beef but if demand continues to increase for corn and the price continues to rise, this will undoubtedly rise beef prices in the near future. So not only does the government subsidizing of ethanol encourage a switch to a less efficient, less cost effective fuel, it is also increasing the prices on our dinner menu.

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