Blogging About Critters Since 2007

Tuesday, July 22, 2008

Thanks for Nothing, Ethanol

I'm not a big ethanol fan, particularly not after hearing this story on NPR a few weeks ago.

Basse says a few years ago, organic grains like corn could be sold at a healthy premium over conventional crops, more than making up for the added costs and labor. But biofuels have reversed that equation. Ethanol's appetite for corn of any kind has driven up the price of conventional grains faster than organics, all but erasing the premium.

{Economist Dan} Basse says this is bad news for organic dairy producers. Midwest farmers are abandoning organic grain production at a time when organic milk is experiencing a glut. That oversupply has delayed any severe jumps in the cost of organic milk -- at least for now.

But as feed costs force dozens of organic dairies go out of business, {economist Dan} Basse says it's only a matter of time before consumers are left holding the tab.

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