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Beattie promises ethanol
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issue is so complex, only the market will sort it out.
Yes, wheat and sugar prices have risen, but from incredibly low
levels. Much grain is only produced in many parts of the world,
with massive Govt subsidies, for political rather then economic
reasons.
I think the key is to see ethanol not as a cure all, but as
just another of many potential energy sources for the future.
Personally I don't believe that the solution to feeding the
third world, is to keep commodity prices below their cost
of production, by Govt subsidies.
If we look at the poorest areas, ie. the Horn of Africa,
last week's Economist has a detailed article discussing
lack of family planning, the world's highest birthrates
and overpopulation as problems leading to mass starvation
in that area. Shipping ever increasing boatloads of food into
that area, is not going to solve their problems either, in the
longer term.
Personally I think that their answers lie in modern family
planning availability, ie. its easier to feed 2-3 kids rather
then 10. Secondly, Western agricultural methods might be great
for the West, but things like permaculture would be far better
suited to the third world to increase food production there,
rather then chemical farming, as we do it.
Meantime, if corn is only worth 60$ US to a grower in Iowa or
wheat is only worth 150$ to a farmer in West Australia,
if you crunch the numbers, that tonne of wheat can produce
400l of ethanol. If it makes economic sense, why not do it?