MSNBC is reporting that the incredibly ignorant, government sponsored ethanol craze (worldwide) is driving dairy prices through the roof in the US. Unfortunately this is just the beginning of this very serious problem and it will affect a great many more countries than just the US. The rapid expansion of production of biofuels is going to lead to skyrocketing prices in food products worldwide.
Dairy market forecasters are warning that consumers can expect a sharp increase in dairy prices this summer. By June, the milk futures market predicts, the price paid to farmers will have increased 50 percent this year — driven by higher costs of transporting milk to market and increased demand for corn to produce ethanol.
Forget about putting monthly payments into an RRSP, or saving for a house as more and more of our savings will go to putting basic healthy food items on the table. Effectively we are trading our low food prices for what? Higher and higher gas prices increases that are just going to keep going up anyways? Exactly what are we winning here?
According to Environment Canada, ethanol is no better for the environment than regular gas so what is the point of continuing down this fruitless and dangerous path? Our food prices will skyrocket to satisfy our never ending thirst for oil. Get ready to spend a lot more of your paycheck on your basic grocery bill.