Ethanol Raising Price of Beef

So, you want to use corn to reduce the nation's dependence on foreign oil, huh? Have you thought through all of the ramifications first?

For instance, how are cattle ranchers going to afford to feed their cows, and what might that do to the availability of beef around the country and its price?

Clearly, such issues weren't fully considered before Congress decided to mandate the use of ethanol additives in gasoline as reported by the New York Sun Wednesday (emphasis added):

The country's effort to move away from a dependence on foreign oil and embrace green initiatives appears to be behind a change in one of New York's purest traditions, the menu of the classic steakhouse.

The production of ethanol, which is made from corn, is one major reason classic cuts of prime beef are becoming more and more expensive, an analyst at the cattle market analysis firm Cattle-Fax, Tod Kalous, said.

So, let's look at the results of this ethanol experiment so far, shall we:

  • Corn prices have skyrocketed
  • Gasoline prices have skyrocketed
  • More pollutants are being released into the air given how much dirtier ethanol blends are than unblended gasoline
  • Fuel efficiency has declined as ethanol blends get fewer miles per gallon than unblended gasoline
  • Meat prices have risen with better cuts less available
  • Rainforests are being cleared to make room to grow crops.

All makes sense to me.

Noel Sheppard
Noel Sheppard
Noel Sheppard, Associate Editor of NewsBusters, passed away in March of 2014.