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Ethanol Issues

Ethanol Issues. Food versus Fuel – Domestic Food versus Fuel – International Energy Balance Community Impacts. Food vs. Fuel Domestic. Food Losses at the Retail, Foodservice and Consumer Levels, 1995. Edible Food Supply * Percent Commodity (million pounds) Loss

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Ethanol Issues

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  1. Ethanol Issues • Food versus Fuel – Domestic • Food versus Fuel – International • Energy Balance • Community Impacts

  2. Food vs. FuelDomestic

  3. Food Losses at the Retail, Foodservice and Consumer Levels, 1995 Edible Food Supply * Percent Commodity (million pounds) Loss Grain Products 45,606 32% Fruit 48,338 23 Vegetables 63,077 25 Dairy Products 76,276 32 Meat, Poultry & Fish 51,466 16 Eggs 7,918 31 Caloric Sweeteners 38,827 31 Other 24,37430 Total 355,883 27% * Excludes non-edible food parts. Source: Economics Research Service, USDA

  4. 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: 1) Sudan  2) Somalia  3) Chad  4) Central African Republic  5) Democratic Republic of Congo  6) Rwanda  7) Kenya  8) Uganda  9) Ethiopia

  5. Food vs. FuelInternational

  6. Impact of Commodity Prices on Consumer Food Budgets High-income Low-Income, Food- Countries Deficit Countries Base Scenario Income $40,000 $800 Total food expenditure $4,000 $400 Food 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 $420 Total food expenditure $4,400 $540 Food 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.

  7. Policy Changes to Discourage Exports (keep within country) • Eliminate Export Subsidies – China • Implement Export Taxes – China, Argentina, Russian, Kazakhstan, Malaysia • Export Restriction (quantitative) – Argentina, Ukraine, India, Vietnam • Export Bans – Ukraine, Serbia, India, Egypt, Cambodia, Vietnam, Indonesia, Kazakhstan • Reduced Import Tariffs – India, Indonesia, Serbia, Thailand, EU, Korean, Mongolia • 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.

  8. Energy Balance

  9. Btu Used to Make One Btu at the Fuel Pump * Total Fossil Btu Fuel Btu Corn Ethanol ** 1.75 .74 Cellulosic Ethanol 2.25 .10 Gasoline 1.23 1.23 * Argonne National Laboratory ** Dry Mill

  10. British Thermal Units Generated from One Btu of Fossil Fuels * Btu Corn Ethanol 1.36 Gasoline .81 Electricity .45 Coal .98 Cellulosic Ethanol 10.31 * Argonne National Laboratory

  11. Community Impact

  12. Job Impact – 100 MGY Ethanol Plant Ethanol Plant – One job per 5,176 ac. Corn Total – One job per 1,400 acres of Corn

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