The Food versus Fuel Debate: Implications for Consumers

The effects of biofuel production on commodity prices and their transmission to retail food prices are discussed. Factors driving higher commodity prices are tight global supplies and increased demand of corn ethanol in the short term. Evidence suggests that higher corn prices contribute to food price inflation for some food items. These include eggs, poultry, pork, beef and milk. The findings imply that food price inflation for these items is related to increased production of corn ethanol, primarily because of high oil prices. Higher oil prices also increase fuel and energy costs, which increase marketing costs for all food categories.

Issue Date:
Aug 01 2009
Publication Type:
Journal Article
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PURL Identifier:
Published in:
Journal of Agricultural and Applied Economics, Volume 41, Number 2
Page range:
JEL Codes:
Q420; Q130

 Record created 2017-04-01, last modified 2018-01-22

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