is part of the Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

  • American Agriculturist
  • Beef Producer
  • Corn and Soybean Digest
  • Dakota Farmer
  • Delta Farm Press
  • Farm Futures
  • Farm Industry news
  • Indiana Prairie Farmer
  • Kansas Farmer
  • Michigan Farmer
  • Missouri Ruralist
  • Nebraska Farmer
  • Ohio Farmer
  • Prairie Farmer
  • Southeast Farm Press
  • Southwest Farm Press
  • The Farmer
  • Wallaces Farmer
  • Western Farm Press
  • Western Farmer Stockman
  • Wisconsin Agriculturist
Corn+Soybean Digest

Ethanol Not Cause of high Food Prices

Simply put, growing U.S. ethanol industry is not the cause of food price inflation, according to a new statistical analysis by Informa Economics, Memphis, TN.

The report finds a comparatively “weak correlation” between corn prices and overall food costs. In fact, just 4% of the change in the food Consumer Price Index (CPI) could be attributed to fluctuations in the price of corn.

“The statistical analysis plainly details that energy-intensive activities such as processing, packaging and transporting, as well as the cost of labor, have a far greater impact on consumer food bills than the price of grain,” says Informa Chairman and Chief Executive Officer Bruce Scherr.

The study points out that the proportion of the average American's disposable income spent on food has declined steadily over the last half-century, from 21% of disposable income in 1950 to below 10% in 2006.

You can find the “Analysis of Potential Causes of Consumer Food Price Inflation,” at Informa's Web site:

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.