The Food versus Fuel Debate: Implications for Consumers

R. Wes Harrison

Journal of Agricultural and Applied Economics, 2009, vol. 41, issue 02

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: Biofuels; food prices; ethanol; Agribusiness; Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis; Food Security and Poverty; Public Economics; Resource /Energy Economics and Policy; Q420; Q130 (search for similar items in EconPapers)
Date: 2009

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