Low grain harvest, rising food prices and China’s ethanol plan


	Low grain harvest, rising food prices and China’s ethanol plan

JICWyllie

9-10-2007 8:41 AM

436 views

tags:

food, energy, i-supply, i-shortage, i-prices, i-increase

1 Comment |

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9-10-2007 1:13 PM

ericskiff

Wow. I never imagined that Ethanol production would be halted so early in this changeover process. Growing fuel instead of food isn't going to make sense going forward for most countries. Next idea?

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In southern China flood waters have submerged about 9.7 million hectares (21.5 million acres) putting the total submerged and parched dry land at one-sixth of the country's 120 million-hectares (288 million acres) of arable land. Add to this, the damage to half-a-million hectares (1.2 million acres) that have been devoured by rice-plant hoppers in Sichuan Province, and at this time it is not clear whether the drought, flood and insect pests would force Beijing to turn to imports. Drought-stricken areas are the country's key bases of grain production; flood-hit areas are the key to rice production. </blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.energybulletin.net/34519.html">
The consumer Price Index (CPI) grew 5.6% in July 2007, the highest in ten years, with meat (especially pork rising 43% in one year), poultry, eggs and grains leading the index. </blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.energybulletin.net/34519.html">in August, China declared a moratorium on the construction of most ethanol plants. Chinese officials recognized that producing corn-based ethanol was linked to rapidly rising food prices.</blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/86E5CBFC-18AA-48B1-8CBC-BD0266995CE1/blog/" title="blog or email this clip"><img src="http://content8.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>

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