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MANAGING Tough Times
Ethanol Issues
• Food versus Fuel – Domestic
• Food versus Fuel – International
• Energy Balance
• Community Impacts
MANAGING Tough Times
Food vs. FuelDomestic
MANAGING Tough Times
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MANAGING Tough Times
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Food Losses at the Retail, Foodservice and Consumer Levels, 1995
Edible Food Supply * PercentCommodity (million pounds) LossGrain Products 45,606 32%Fruit 48,338 23Vegetables 63,077 25Dairy Products 76,276 32Meat, Poultry & Fish 51,466 16Eggs 7,918 31Caloric Sweeteners 38,827 31Other 24,374 30Total 355,883 27% * Excludes non-edible food parts.Source: Economics Research Service, USDA
MANAGING Tough Times
1) Sudan 2) Somalia 3) Chad 4) Central African Republic 5) Democratic Republic of Congo 6) Rwanda 7) Kenya 8) Uganda 9) Ethiopia
U.S. food supply is 3,800 calories per person per day (USDA, 1994). If the avg. person needs 2,000 calories per day, the excess calories could provide all of the caloric needs of:
MANAGING Tough Times
Food vs. FuelInternational
MANAGING Tough Times
Impact of Commodity Prices on Consumer Food Budgets
High-income Low-Income, Food-Countries Deficit Countries
Base ScenarioIncome $40,000 $800Total food expenditure $4,000 $400Food cost as % of income 10.0% 50% Staples as % of food spending 20% 70%Expenditures on staples $800 $280
New Scenario: 50% price increase in staples,
Expenditures on staples $1,200 $420Total food expenditure $4,400 $540Food cost as % of income 11% 67.5%
These are illustrative food budgets that characterize the situations for consumers in high- and low-income countries.
Source: Global Agricultural Supply and Demand: Factors Contributing to the Recent Increase in Food Commodity Prices/WFS-0801, Economic Research Service, USDA.
MANAGING Tough Times
Policy Changes to Discourage Exports (keep within country)
1. Eliminate Export Subsidies – China2. Implement Export Taxes – China, Argentina, Russian,
Kazakhstan, Malaysia3. Export Restriction (quantitative) – Argentina, Ukraine, India,
Vietnam4. Export Bans – Ukraine, Serbia, India, Egypt, Cambodia,
Vietnam, Indonesia, Kazakhstan5. Reduced Import Tariffs – India, Indonesia, Serbia, Thailand,
EU, Korean, Mongolia6. Subsidize Consumers – Morocco, Venezuela Source: Global Agricultural Supply and Demand: Factors Contributing to the
Recent Increase in Food Commodity Prices/WFS-0801, Economic Research Service, USDA.
MANAGING Tough Times
Energy Balance
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Btu Used to Make One Btu at the Fuel Pump *
Total FossilBtu Fuel Btu
Corn Ethanol ** 1.75 .74Cellulosic Ethanol 2.25 .10Gasoline 1.23 1.23 * Argonne National Laboratory ** Dry Mill
MANAGING Tough Times
British Thermal Units Generated from One Btu of Fossil Fuels *
BtuCorn Ethanol 1.36Gasoline .81Electricity .45Coal .98Cellulosic Ethanol 10.31 * Argonne National Laboratory
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Community Impact
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Job Impact – 100 MGY Ethanol Plant
Ethanol Plant – One job per 5,176 ac. Corn
Total – One job per 1,400 acres of Corn
