The CONNECT

Ethanol → corn → food → POVERTY

Look, I am well aware that an alternative to oil dependency is of utmost importance, however when a Dash for green fuel pushes up price of meat in our country, well then.... then it's time to take a pause....The price of meat is set to rise again across the country as the nation’s helter-skelter dash to convert corn into road fuel begins to take its toll on the supply of food.

The US Department of Agriculture has said that meat supply will fall this year because of the high cost of feed. Output of beef, pork and chicken is expected to decline by one billion pounds as farmers react to the soaring cost of feeding their livestock.

The biofuel revolution’s unpleasant negative consequence was first noticed in our community of South Central Los Angeles , when the escalating price of corn affected the cost of Thanksgiving turkeys a year and a half ago. (Note. This is when Councilman Barnard Parks of the Los Angeles City Council, offered "freebees" at a non-union grocery store. I am happy to say, he paid for all those discounts by remaining a council member.... Some of you know what I mean...) ooohhh. Here is another note. Did you know that the unemployment rate has increased 9.2% in the 8th council district, since Councilman Parks was elected.. WOW!

.....Now back to the CONNECT...

In Washington, the International Monetary Fund added its warning about the consequences of a mass conversion of food crops into fuel. Vast US government subsidies for the production of ethanol, used as a petrol additive in America, has encouraged the expansion of ethanol distilleries. The indirect subsidy to ethanol on the 4.9 billion gallons produced in 2006 comes to $3.9 billion. Together with the direct subsidies of $0.9 billion for corn and $2.5 billion for ethanol the grand total is $7.3 billion. That's $1.50 per gallon of ethanol, or $2.28 per gallon of gasoline replaced.

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  In 2006, the total subsidies for ethanol came to roughly $7.3 billion, which is $1.50 per gallon of ethanol produced or $2.28 per gallon of gasoline replaced. These subsidies have produced an enormous boom in ethanol. Between August 2006 and January 2007, the capacity of existing plants and plants under construction grew from 7.4 billion gallons to 11.4 billion, a 54% increase in six months. Collins (USDA, 2006) describes the state of the market as ethanol euphoria.

Here's why the BLUEPRINT for JUSTICE wants to highlight the CONNECTION between Food and Fuel.

Sharp increases in food prices over the last few years have impoverished millions. In the up coming blogs(now that you have some facts) I will outline the inadequacy of states and federal government safety nets and propose means by which the progressive community might help poor consumers cope with rising food prices.

Keep this in mind--- food commodities prices increased 130% from January 2002 to July 2008. Individual agricultural commodities show even more pronounced increases: corn (up 190%), wheat (162%), rice, (318%) and soybeans (246%) rose dramatically. Food prices began to fall in July '08, bringing some relief, but prices are likely to stay high for the foreseeable future. What does this mean for the poor?

Turn to the BLUEPRINT for JUSTICE.