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Food, feed, fuel transforming the competition for grains.
Food, Feed, Fuel: Transforming the Competition
for Grains
Arindam Banerjee
ABSTRACT
Critical changes are underway in the domain of grain utilization. With the
large-scale diversion of corn for the manufacture of ethanol, the bulk of it
in the USA, there has been a transformation of the food–feed competition
that emerged in the twentieth century and characterized the world’s grain
consumption after World War II. Concerns have already been expressed in
several quarters regarding the role of corn-based ethanol in the recent food
price spike and the global food crisis. In this context, this article attempts to
outline the theoretical tenets of a food–feed–fuel competition in the domain of
grain consumption. The study focuses on developments in the US economy
from 1980 onwards, when the earliest initiatives on bio-fuel promotion were
undertaken. The transformation of the erstwhile food–feed competition with
the introduction of fuel as a further use for grains has caused a new dynamics
of adjustments between the different uses of grains. This tilts the distribution
of cereal consumption drastically against the low-income classes and poses
tougher challenges in the fight against global hunger.
INTRODUCTION
The world is witnessing critical changes in the domain of grain utilization.
With the ongoing efforts to substitute fossil fuels with bio-fuels, there has
been a rise in the importance of cereals being used for fuel. This adds a
new dimension to the food–feed competition that emerged in the twentieth
century and particularly characterized the world’s use of grains after World
War II.1 The last few years have seen a large-scale diversion of corn, the
bulk of it in the United States, to feed the ethanol distilleries. While the
I would like to thank three anonymous referees for their comments which substantially improved
the paper. I thank Utsa Patnaik for her insightful comments during the course of this study. I
am also grateful to all participants for their comments and
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