Food, Feed, Fuel: Transforming the Competition for Grains

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.