QUOTE(Ted @ Jul 11 2007, 06:56 PM)

QUOTE
Funny, the first few sources I read mentioned nothing about ethanol, but a lot about how the drought in many areas of the world has stoked the greed of milk distributors (who set the prices) worldwide.
Did they mention
corn? Which is cow feed but now the price is higher because most goes to ethanol.
Actually, this isn't true at all, Ted. Most corn grown still goes to livestock feed, even with the increased use in producing ethanol. In fact, even corn used to produce ethanol, has a large percentage of the product going back into livestock feed.
Out of a single bushel of corn used in ethanol production, typically about 15 pounds of product (the starches) can be used for ethanol. The remainder (about 18 pounds of what is known as "distillers grains") are used as high protein animal feed supplements, pressed for corn oil, etc.
And that only takes into account field corn. Sweet corn, or other corn used as human food, or in the production of things like cereal, isn't affected at all, because it's an entirely different type of corn.
I would say that the increased in oil prices probably has a larger effect on the price of food, regardless of source, than does ethanol production. After all, the food has to get to market somehow.