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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
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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

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References

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