Mexico Opposes Ethanol
June 30, 2008
As we’ve seen over the last few months, skyrocketing commodity prices are pushing land values to record levels. They are also squeezing cattlemen and other producers who rely on corn and other grains to fatten livestock and poultry. One of the loudest voices protesting this trend has been Texas Gov. Rick Perry, who petitioned the EPA to grant a 50 percent waiver on the 9 billion gallon corn-based Renewable Fuel Standard. Now another vocal opponent of ethanol has emerged: south of the border.
Mexico is clearly feeling the heat. Last week Mexico Agriculture Secretary Alberto Cardenas called for ethanol producing countries to reduce production of grains for alternative fuels. (I guess it goes without saying that the U.S. is the world’s leading ethanol producer with Brazil a close second.) According to this AP story, Sec. Cardenas blames ethanol for bankrupting many of his country’s cattle and poultry farmers as well as causing food prices to hit record highs. The government has responded by freezing prices on more than 150 food products.
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We are putting to much pressure on ethanol as a viable solution to the energy crunch. We could never grow enough corn to replace traditional fossil fuels. Mean while we’re putting more and more pressure on our livestock produces to keep us feed at reasonable food prices. Let’s give the farmers a break and put more pressure on the Automobile industry to build fuel efficient automobiles.
You bring up an excellent point, Brock. Everywhere I turn, people are assigning blame to producers, to oil companies, to OPEC - to anyone but ourselves. We use one-quarter of the world’s oil, and 70 percent goes into cars and trucks. Why hasn’t Detroit stepped up to the plate and shown any leadership by getting more fuel-efficient cars on the market decades ago?
You want to know the real reason why Toyota and Honda continue to gain U.S. market share? Their workers aren’t any better. I say that as the proud owner of Chevy Tahoe manufactured in Arlington, Texas. The reason their market share continues to increase is because Japan has no domestic oil industry. They have to be fuel efficient. Now that American consumers are making the same demands, the Japanese auto manufacturers are cleaning up.
As usual, who will be showing up late to the dance? The Big Three - if they’re still around.