UN urges US to cut ethanol production

Biofuels Digest
Joelle Brink
August 10, 2012

In the US, the Financial Times reports that the UN has called for an immediate suspension of government-mandated US ethanol production, putting pressure on the government and Barack Obama to address the food-versus-fuel debate in the run-up to presidential elections. Most US ethanol is made from corn and the UN argues that dispute over ethanol promotion pits states like Iowa that benefit from higher corn prices against livestock-raising states such as Texas that are helped by lower corn prices. But the real cause for alarm could be the impact of higher ethanol prices on European producers still sidelined by cheap US ethanol, who would then increase ethanol production and pricing using typical EU food crops such as wheat and rye.

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