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Increases in corn prices causes difficulties for developing nations
Hannah Tomlin
Issue date: 10/16/07 Section: News
Many citizens have recently been debating over whether or not the production of alternative fuels will cause more hunger for inhabitants of developing countries.
Due to a rise in the demand for and price of corn, it will be increasingly difficult for people in these areas to purchase our resources.
"We're exporting less and have less surplus to send to these developing countries." Gregory McIsaac, professor of environmental science at the University of Illinois, said.
Although we are not directly taking resources from these countries, the more the demand for corn rises, the less likely they will be able to purchase it.
"It seems like most of the corn used to produce ethanol now comes from a close proximity. That's not taking corn away from developing countries, but using the corn here is causing less to be shipped overseas," McIsaac said.
According to J. Randy Winter, professor of agricultural economics, many people are exaggerating the effects this is having on the developing countries because they did not have the means to purchase large amounts of corn from our country even before the rising demand for corn. "The impact it has on developing countries is very remote and limited," Winter said.
"A higher price of corn reduces our ability to export. They don't have the wealth and income to import appreciable amounts of corn," Winter said.
Winter said a large amount of our exports go to countries such as Japan, the Netherlands and Europe.
Although there is enough land to grow food and use crops for fuel production, Winter said it is not distributed evenly.
"There are some parts of the world that simply do not have the great resources we have here in the Midwest and in Europe," Winter said.
Winter said there are many factors that go into being able to grow and distribute crops, and there are a lot of countries that do not have the ability to do so.
"That has been going on long before we started making ethanol out of corn and will go on after," Winter said.
Due to a rise in the demand for and price of corn, it will be increasingly difficult for people in these areas to purchase our resources.
"We're exporting less and have less surplus to send to these developing countries." Gregory McIsaac, professor of environmental science at the University of Illinois, said.
Although we are not directly taking resources from these countries, the more the demand for corn rises, the less likely they will be able to purchase it.
"It seems like most of the corn used to produce ethanol now comes from a close proximity. That's not taking corn away from developing countries, but using the corn here is causing less to be shipped overseas," McIsaac said.
According to J. Randy Winter, professor of agricultural economics, many people are exaggerating the effects this is having on the developing countries because they did not have the means to purchase large amounts of corn from our country even before the rising demand for corn. "The impact it has on developing countries is very remote and limited," Winter said.
"A higher price of corn reduces our ability to export. They don't have the wealth and income to import appreciable amounts of corn," Winter said.
Winter said a large amount of our exports go to countries such as Japan, the Netherlands and Europe.
Although there is enough land to grow food and use crops for fuel production, Winter said it is not distributed evenly.
"There are some parts of the world that simply do not have the great resources we have here in the Midwest and in Europe," Winter said.
Winter said there are many factors that go into being able to grow and distribute crops, and there are a lot of countries that do not have the ability to do so.
"That has been going on long before we started making ethanol out of corn and will go on after," Winter said.
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