Corn Ethanol pushes up the price of your coffee at Starbucks.
The Daily Green writes about how
the corn growing bonanza driven by government subsidies for the alternative fuel ethanol has tipped yet another domino in the economic food chain: Starbucks coffees.
At least, it’s part of the reason Starbucks is raising its prices, on average, 9 cents per drink.
They comment that
US farmers planted more corn this year than at any time in more than a half century, yet cattle ranchers, dairy farmers and other food producers are finding the supply tight.
That’s because so many corn farmers are growing their crop for fuel, not food. The rise in corn prices is one reason for the rise in milk prices, which is one reason for the rise in the cost of a latte.
This impact on the price of our skinny latte is part of the bigger picture of the move to more corn-based ethanol. The rush to “green our fuel” has effects that are not always apparent. Don’t we just wish that the politicians would take their snouts out of the trough to look at the bigger picture once in a while?

1 response so far ↓
1 Sharon // Jul 25, 2007 at 9:47 pm
That’s a big toss up. I love my Starbucks coffee, but on the other hand, cheaper fuel (well, I am hoping this will translate to cheaper fuel) could make my trip to Blaine Washington (from Canada, eh?) always worth it.
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