Growing use of corn for conversion to fuel may push up world prices of food
FinFacts (Ireland)
The US, the world's largest exporter of corn, will use as much or more of the grain for conversion to ethanol in 2007 than it will sell abroad, according to estimates by the Department of Agriculture (USDA).

As gasoline prices rise, farmers are diverting more of their output to producing fuel rather than food or feedstock for animals. The new estimate highlights the growing competition between food and fuel that could push up the price of food globally. .

The USDA says that about 55m tonnes of corn will be converted into ethanol, compared with exports averaging 40m-50m tonnes over the past 15 years. This would be up from an estimated 41m tonnes last year - a quantity of corn that could feed 131m people for a year. The US accounts for 70 per cent of world corn exports.

"This year looks like being the first time ever that as much or more corn is converted into ethanol than exported. If oil prices stay high, it will propel this trend much further," USDA economist Keith Collins, said in an interview with the Financial Times.
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Growing use of corn for conversion to fuel may push up world prices of food

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