Myth: Using food to create fuel – making ethanol from corn, for example – will drive up my grocery bill and perpetuate hunger in the developing world.
Myth: Using food to create fuel – making ethanol from corn, for example – will drive up my grocery bill and perpetuate hunger in the developing world.
Fact:
Currently, only about 10 per cent of corn ends up as a consumer foodstuff. Most corn grown in North America is used as livestock feed, either domestically or overseas. Moreover, the cost of corn and other grains makes only a small contribution to the price of many consumer products, such as corn flakes and other cereals. A typical loaf of bread, for instance, contains about five cents worth of wheat. Yes, higher grain prices will result in slightly higher food prices. But a June 2007 analysis of food, energy and corn prices conducted by John Urbanchuk of LECG, LLC concluded that "rising energy prices had a more significant impact on food prices than did corn."
Ethanol does not take protein, fibre or fat from the food supply. Ethanol production uses only starch from grains, leaving the remaining protein, fibre, fats, vitamins and minerals. One bushel of corn produces more than 10 litres of ethanol and approximately 18 pounds of distillers grains – a significant ethanol co-product. Highly valued and nutritious, these grains are used in a variety of livestock feeds and can be exported for sale.
The supply of corn is rising. The U.S. Department of Agriculture has announced that this year’s corn crop will be the largest in more than 60 years. Crop acreages are also up in Canada, at a time when more corn is being produced per acre every year. Canada typically produces just under 50 million tonnes of grain (wheat, barley, corn, oats, rye) annually, and exports about half of it. Consider: if all Canadian gasoline contained 10% ethanol, about 8 to 9 million tonnes of grain would be required. Even at this level, Canada would remain a major grain exporter. Furthermore, ethanol in Canada is normally produced from lower value grains such as barley, corn and feed wheat, and can even be made from poor quality and damaged crops. Higher value "bread" wheats will always remain in ample supply for export sales.
Increased demand for corn and other grains may help the developing world. Artificially low prices and ongoing surpluses are devastating to farmers in the developing world. As grain prices rise, agricultural subsidies can be reduced and crop surpluses can be devoted to the production of clean domestic biofuels, rather than being dumped on developing world markets. This could help farmers in the developing world build and strengthen their businesses and, in turn, their national economies.
The future is even brighter and better with next-generation biofuels. Crop science will ensure that corn yields continue to increase (and with fewer inputs of chemicals, petroleum and water) and that ethanol technology continues to improve. As well, large-scale cellulose ethanol plants will soon be built to make use of such biomass as agricultural residues (wheat and barley straw, corn stover, etc.), forestry wastes (wood chips, sawdust, etc.), dedicated energy crops (switchgrass, algae, etc.) and municipal solid wastes (food and yard waste, recycled newsprint, etc.). This will help diversify our energy supply and build a better renewable future.
Overall, a strong domestic biofuels industry is good news for Canadian farmers and rural communities, good news for our environment and air quality, good news for consumers and motorists, for the Canadian economy, and for the developing world.