Enquirica Research - U.S. Feeds One Quarter of its Grain to Cars

PRLog (Press Release) - Oct. 13, 2011 - The growing use of biofuels appears to have serious consequences for agricultural commodity prices.   More than a quarter of the total U.S. grain crop was turned into ethanol to fuel cars in 2009.   Quick biofuel facts:

•   The amount of grain processed in biofuels has tripled in the US since 2004
•   If the entire U.S. grain crop were converted to ethanol it would only supply 18 percent of U.S. automotive fuel needs.
•   A 2008 World Bank report unequivocally blamed the mandated production of biofuels for the spike in global food prices.  According to the report, biofuels increased food prices by 75 percent.
•   Research estimates that current biofuel targets in the US, the EU, Canada, Japan, Brazil, India and China alone could require the diversion of over 400 million acres of arable land or over 10% of the world’s total from food production.

Enquirica commented that "Food, feed & fuel are core components of the farmland investment premise. We believe that the expanding use of biofuels will only serve to add additional upward pressure on agricultural commodity prices”

Enquirica Research is a Calgary based firm focussing on the analysis of alternative asset classes and investments, primarily in western Canada. For copies of Enquirica research register at www.enquirica.com.
                                    
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Enquirica Research is a Calgary based firm focussing on the analysis of alternative asset classes and investments, primarily in western Canada. For copies of Enquirica research register at www.enquirica.com.