Corn Ethanol Production
The bio-fuel policies have seen an upsurge in the use of corn ethanol as a renewable source of energy and this has had its impact on the food situation not only in the US, but the world at large. With the energy policies in consideration, corn ethanol production has contributed to the skyrocketing food prices consequently affecting other aspects of the economy. Corn is an essential source of feed to animals and a crucial element in the diet of human beings and thus any worrying price increase in the commodity raises great concern.
I would like to determine whether the recent use of corn in the manufacturing of ethanol has had adverse effects on its availability to those who require it for use in food production and consumption. I feel that this is a significant issue as it has far reaching effects on other industries as well as societies around the globe. Countries such as Mexico rely on exports of U.S. corn in order to feed their populations. Domestic producers of livestock also rely on corn for use as a feed source for their animals. A recent increase in the allocation of available corn for use in the production of ethanol has caused market prices to increase substantially. This not only causes production costs to increase for livestock producers, thereby pushing live stock prices up, but also causes cost on quality of life issues to increase within lesser developed countries. Because of price increment, the inhabitants of these countries cannot afford to purchase products that are made from what was once a main staple in their diets. Mexico, for example, was forced to enact a price ceiling on tortillas just so that its citizens could eat (Addison, 2010).
Proponents of the use of corn for ethanol production say that the price increases are mostly due to an increase in the cost of growing the crops. Mainly because of significant price increases in the fertilizers needed for corn production. They also argue that the corn price increases are simply a function of the laws of supply demand, and therefore prices will drop once production increases. On the other hand, the opposing forces towards the use of corn to produce ethanol believe that the current approach and pace of ethanol production is rife with risks to traditional users of the food-grains. They argue that ethanol could be obtained from Brazil, where it is produced from sugar cane, for much less than it currently costs to produce it from corn. However, a government tariff on Brazilian ethanol, along with subsidies to corn growers for sales to ethanol producers currently makes this a more costly endeavor.
After all has been said and done, there is need to research on the effects of ethanol production from corn to other aspects of the economy. Using the various methods of research which I have learned, I will attempt to determine whether or not the use of corn for ethanol production has caused enough impact on pricing to be detrimental to other aspects of the economy. I expect that I will be able to establish a direct correlation between the increase in prices for various food items and the increased use of corn for the production of fuels.
Ethanol fuel
Ethanol fuel is also referred to as ethyl alcohol or grain alcohol and can be used as a high-performance motor fuel which is said to be environmentally friendly (Addison, 2010). The use of ethanol as a fuel is said to have been advanced by Henry Ford who is famous for designing the 1908 Model T that was able to run on ethanol. According to Ford, ethanol was regarded as the fuel of the future and his words seem to have been prophetic. At the time he discovered that ethanol could be used as an alternative fuel, there was developments in the oil industry that led to availability of cheap and readily available vehicle fuel. As the time passed by, limited oil refining and the resulting insatiable demand for energy in the United States has led to increasing demand for alternative source of energy with ethanol proving to be the favored alternative (Butzen Haefele, 2010). Ethanol is usually made from fermentation and distillation of starch andor sugar crops such as sugar cane, corn, sorghum, and wheat among other grain crops. It can also be made from corn stalks and wastes from vegetable and fruits. According to statistics, the United States is the words leading ethanol producer ahead of Brazil. It is estimated that over seven billion gallons of ethanol fuel was used in 2007. This accounts for about 12 of fuel sales in the United States. Ethanol blends are continuously being used across the world including countries like Brazil and South Africa. Brazil in particular has recorded a success story in the use of ethanol with a reported production of four billion gallons of ethanol annually. In Brazil, all the fuel is said to contain at least 24 percent of ethanol with most of the fuel being 100 ethanol. Many other countries across the world are also involved in the ethanol fuel programs and this indicates how ethanol production has continued to gain ground in the recent past (Addison, 2010).
Ethanol fuel has been preferred as it is said to be a renewable source of energy that is environmentally friendly. This form of energy can be derived from common food crops such as sugarcane, potatoes, manioc, and corn. There have been concerns about the usefulness of bio-ethanol in replacing the gasoline in regard to its production and use. This arises due to the fact that very large amount of land is usually required for the production of this kind of energy and also queries have been raised concerning the balance between the energy and pollution when the whole cycle of ethanol production is critically analyzed. The fact that ethanol fuel is deemed to be environmentally friendly has overridden the other concerns about the bio-ethanol fuel. It is said that corn ethanol directly emits 51 fewer greenhouse gas as compared to the gasoline for every gallon that is produced. This is according to a study that was carried out by researchers at the University of Nebraska-Lincoln. The researchers conducted an evaluation of the dry-mill ethanol plants using natural gases. These plants accounts for an approximated 90 of ethanol production in the United States (RenewableEnergyWorld.com, 2010). The research quantified the impacts of recent improvements in the corn-ethanol production process that includes crop production, bio-refinery operations, and co-product use. The study was conducted to dismiss claims that corn ethanol produces very little net energy and that it had insignificant potential of reducing the greenhouse gas emissions when compared to gasoline. With the use of improved technologies, the study found out that there was increased energy efficiency and great reductions in emissions. The research concluded that ethanol industries produces fuel that was between 48 and 59 less in direct-effect lifecycle greenhouse emissions than gasoline (RenewableEnergyWorld.com, 2010).
Production of Ethanol
The production of ethanol from the starch is one of the earliest ventures involving value addition that man was engaged in. though the basics of developing ethanol have remained basically constant, there has been continuous refinement to the process that has led to great efficiency. Two production processes have been advanced including the wet milling and the dry milling with the critical difference between the two being found in the initial treatment given to the maize grain (Renewable Fuels Association, 2010). Different companies of today have advanced technological innovations such as the cold starch fermentation, corn fraction, and the corn oil extraction. These companies also use the biomass gasification and the methane digesters in an effort to reduce the natural gas consumption. More work is being carried out aimed at reducing energy consumption as well as production costs. There is also need to increase the efficiency and cut on the gas emissions through the use of the available control technologies (Renewable Fuels Association, 2010).
In dry milling, the whole corns essential part often referred to the kernel or any other starch grain is initially ground into flour which is then processed without the separation of the different parts of the grain. The flour is then slurried with water in order to form mash onto which enzymes are added in order for the starch to be converted into a simple sugar known as the dextrose. Ammonia is then added to control the pH and as a nutrient to the yeast. The mash is then processed in a high temperature cooker so as to reduce the bacteria level before the fermentation process (Renewable Fuels Association, 2010). The mash is then cooled and relocated to fermenters and yeast added to it and the process of sugar conversion to ethanol and carbon IV oxide starts. The fermentation process usually takes between forty and fifty hours. During this process, the mash is kept cool and disturbed in an effort to accelerate the activity of the yeast. Upon completion of the process of fermentation, the resultant beer is relocated to a distillation a column in which ethanol is separated from the rest of the mash. The ethanol is then concentrated to around 190 proof through the use of usual distillation and later dehydrated to an approximated 200 proof in a molecular sieve system. This final product of anhydrous ethanol is then blended with 5 or so of a denaturant to make it unfit for human consumption. This is also necessary since it makes the ethanol not liable for taxation as a beverage alcohol. This is how the dry milling ends in the production of ethanol fuel (Renewable Fuels Association, 2010).
On the other hand, the wet milling involves the grain being soaked or steeped in water or dilute sulfurous acid for between 24 and 48 hours. Upon soaking, the corn slurry is then processed via a series of grinders in order for the separation of the corn germ to occur (Renewable Fuels Association, 2010). In the process, the corn oil is extracted from the germ with the remaining fiber, gluten and starch being further separated by the use of centrifugal, screen, and hydroclonic separators. Concentration of the steeping liquor is then done in an evaporator and the products co-dried with the fiber component which is sold as corn gluten feed to the livestock industry. The starch and the water that remains from the mash can be processed to yield different products. Of interest is the fact that the mixture can be fermented into ethanol following similar fermentation procedure as in the case of the dry milling processing (Renewable Fuels Association, 2010).
Trends in the production of ethanol
The concept of ethanol production and the protein-rich co-products from the grains has been in existence for quite a long time. The use of ethanol as fuel was advocated for the first time more than a century ago. The first large scale use of ethanol in gasoline was adopted as a domestic energy strategy in the 1970s. Ethanol has also been used in the 1980s as a replacement to octane and also as a weapon in the war against pollution in the 1990s (Sneller Durante, 2009). Nowadays, ethanol is used to meet a range of energy requirements, agricultural development as well as economic policy objectives. The ever-rising demand for the cleaner energy in the transportation sector has created a huge demand for the bio-fuels. These are the agriculturally derived renewable fuels including ethanol and bio-diesel. The production of the ethanol in the United States reached its highest peak in the year 2006 and the trend is not anywhere near to falling down. Though sugarcane, sorghum, and waste materials are used in the production of ethanol, corn has continued to be the primary source of ethanol production in the United States (Sneller Durante, 2009). Ethanol production in the United States has grown more than 25 each year starting from 2001. In the year 2007, the ethanol industry 6.5 billion gallons of fuel which was an increase from the less than 5 billion gallons produced the preceding year. This massive production is said to have used well over 2.3 billion bushels of corn or an approximated 17.5 of the all the corn that was produced during that year. At the moment, more than 130 plants are operational in over 26 different states and the same time more than 70 plants are being either expanded or built. The production capacity of the bio-fuel is estimated to be more than 7 billion gallons annually (Butzen Haefele, 2010).
Investments in the renewable source of energy especially in the bio-fuels have been tremendously increasing in the past few years especially in the developed countries and Brazil. It is argued that in the years between 2001 and 2008, the production of ethanol has grown three folds from 4.9 billion gallons to a massive 17 billion gallons while bio-diesel production rose from a paltry 264 million gallons to 2.9billion gallons (Runge, 2010). The United States and Brazil are the major producers of ethanol. Bio-diesel which is another bio-fuel is produced mainly by the European countries. Bio-fuel has been hailed as the timely alternative source of energy with a strategic value since it is renewable and reduces the dependence on the foreign oil imports. It is also argued that the bio-fuel benefits the farmer through the creation of a new market for corn supplies (Runge, 2010). An argument has also been advanced that being viewed as a rapidly expanding industry in the Midwest bio-fuel is engaged in the creation of employment opportunities in the once economically deprived rural areas and among small communities. Bio-fuel is also praised for the production of environmentally clean energy that minimizes on the greenhouse gas emissions as well as increasing on the octane rating of the gasoline. All these advantages together with legislative initiatives by the government can be said too be responsible for the rapid growth of the ethanol industry in the United States (Butzen Haefele, 2010).
With the widening market demands for the corn in the United States, the farmers have been forced to cope up with the ever-increasing demand for the product. In the year 2006, 10.74 billion bushels of corn were produced in which case 1.8 billion went to the production of ethanol. In the same year, 26 of the US grain sorghum was also involved in ethanol production. According to the United States Department of Agriculture, the year 2007 witnessed a tremendous increase in the farmland acreage meant for corn production from the previous 14.5 to 19.9 million acres. Much of the increase was attributed to the conversion of cotton and soybean acres to corn production (Sneller Durante, 2009). From this revelation it is clear that ethanol production has gained precedence among policy makers but the move is likely to ruin other sectors of the economy. This has been demonstrated by what is seen as seemingly moving away from other food-crop production to enhance bio-fuel production. The United States is seen as disregarding the importance of other key agricultural sectors with unprecedented focus on the bio-fuel sector. The corn export sector and production of other food crops are the first to experience the pinch of bio-fuel production. It is therefore important to note that bio-fuel production may have detrimental repercussion especially to the developing countries depending on food imports from the developed countries since the latter seem to be less concerned with the plight of the former (Msangi Ewing, 2008).
The production of the bio-fuel can not be tied down to the developed nations and Brazil as many more counties are joining the band wagon for the production of the fuel. The global energy resource is becoming scarce each day in the wake of an ever-increasing demand for fuel. Many countries have therefore resorted to bio-fuels in an effort to supplement their domestic energy consumption. Initially the developments in the bio-fuel industry were a preserve for the developed world but developing nations have also expressed a growing interest in the production of the fuel as well. Brazil and the United States account for well over 90 of ethanol production whereas the European Union boasts of 90 in the production of bio-diesel (Msangi Ewing, 2008). China and India have been engaging in the production of the bio-fuel and are expected to claim a significant share in the production of these bio-fuels. A number of developing countries have found the prospects of bio-fuel as an attractive venture but they are usually retracted by the huge investment required in the sector. Bio-fuel would require a committed government long-term support via subsidies, tax credits, among other incentives for both the producer and the consumer. These countries may be having suitable climate, land, and agro-ecological conditions suitable for the growth of the feedstock but most of them are not capable of facilitating the large-scale production of bio-fuels. These countries usually have inadequate resources that can not be diverted to matters of little importance at the expense of the priority development projects (Msangi Ewing, 2008).
The Energy Policies in the US
The Energy Act of 2005 that was signed into law had provisions that promoted energy efficiency and conservation, modernizing the domestic energy infrastructure and providing incentives for traditional and renewable energy alternatives. There are additional sections promoting the use of bio-fuels and the related products, describing special studies in bio-fuel production, and providing funds that covers the loan guarantees in the demonstration of feasibility studies ion the production of particular bio-fuels including Title II (Renewable Energy), Title IX (Research and Development), and Title XV (Ethanol Motor Fuels ). The 2002 Farm Bill establishes the new programs and grants which aids in the increase in the use of bio-fuels and the related products. This also advances development in the bio-refinery and re-authorizes the bio-energy programs (U.S. Department of Energy Office of Science, 2010). The Biomass Research Development Act of 2000 has been revised by the Energy Act of 2005. This Act directs the Department of Energy and Agriculture to amalgamate their biomass Research Development and goes further to establish the Biomass Research and Development Technical Advisory Committee which offers advice to the Secretaries of Energy and Agriculture regarding the strategic planning for the biomass Research Development (U.S. Department of Energy Office of Science, 2010).
The effectiveness of the current policies on bio-fuel has been doubted especially with the negative impacts the policies have had on the prices of the food products that relates to ethanol production. Though the proponents of bio-fuel production have dismissed the significance of their program on food prices, increasing evidence continues to link ethanol production to the skyrocketing food prices. According to Keith Collins, former Chief economist with the Department of Agriculture in the US, ethanol production will no doubt increase the demand for corn which is an essential animal feed and a component of most human diets. More farmers are encouraged to grow more corn for bio-fuel production at the expense of feed corn and other crops. The high demand being created will definitely be reflected in the high food prices (Martin, 2008).
Impacts of corn ethanol production to food prices
There has been continued interest to determine how bio-fuel production may impact on food security. Countries that are importers of both food and fuel are the worst placed when it comes to secure food supplies. This is because the countries which produce food in abundance have the capacity to produce both food and fuel whereas the food importers have to gamble between importing food and producing the bio-energy. The urban households are the hard hit since they purchases both food and fuel and have to adjust to the increasing food prices (Msangi Ewing, 2008). The rural folks may be able to engage in the production of both food and fuel for their subsistence consumption. Though higher agricultural prices may provide rural producers with access to the world energy markets, it has been established that in the long run this has a considerable impact on the food consumption and nutrition of these people. For instance, sugarcane and cassava are mostly used as feed-stocks in the bio-fuel industry in Latin America and that an increase in the production of cassava meant for the ethanol production may result in a rapid increase in its world pricing and this may pose a great threat to the rural poor who are dependant on the cassava as their staple food (Msangi Ewing, 2008).
There is an argument that large-scale bio-fuel production could lead to diversion of agricultural production away from food crops especially in the developing world. In this scenario, the energy-based crop programs would be in direct competition with food crops in several ways thereby causing shortages in food supply and skyrocketing prices. Brazil for instance suffered food shortages and price increase in food commodities and this was blamed on the Pro-Alcohol Program that was dedicated to the production of ethanol fuel. Corn is a staple food for many nations not just as food for human consumption but also for animal feeds. A decrease in the availability of corn for food in the global market may result in more hunger. In the long run, the prices for the corn and animal products will rise beyond the reach of many common individuals (Ziad, 2009). Despite such fears the US government approved the addition of more ethanol into gasoline following recommendations by the Environmental Protection Agency. A study conducted by the Alliance for Food before Fuel established that if ethanol production was expanded, then the food industry would part with half of the corn crop produced in the United States. This would be detrimental to other areas of the economy as it will adversely affect the other uses of the corn including animal feed production as well as the corn exports. According to Bill Lapp, the president of Advanced Economic Solutions, implementation of the increase in ethanol blend in gasoline will mean that corn acreage would rise to 111 million acres at the expense of other food crops (Ziad, 2009). The prices of corn in the United States have been souring in the past few years and therefore an increase in the amount of bio-fuels that are allowed in the blending of the gasoline are going to worsen the situation. According to the United States Department of Agriculture, an estimated 85 million acres of land were used in the production of corn in the year 2009 which translates to 12.1 billion bushels and 34 of the harvest is destined for ethanol production (Bjerga, 2009).
With increasing demand for corn and other feedstock crops, prices have remained relatively high in the wake of bio-fuel production. Consumers in the global market have been shocked with the increasing prices in grain commodities especially in the year 2008 and in the opening period of 2009. According to Runge (2010), between 2005 and 2008, the global price of wheat increased by 143, corn by 105, rice by 154, sugar by 143, and oilseeds by 197. In 2006 to 2007, the rate hastened in part due to the continuous demand for bio-fuels. The moderation witnessed in the prices is thought to be temporal by analysts when the tight stocks-to-use ratios are considered. In poor countries, the increase in the prices poses a direct risk to the disposable and food security. In these countries, the increase in food prices has been worrying for the poor population of more than a billion individuals who are persistently food insecure. Poor farmers in developing countries hardly support their households on subsistence basis and do not have the surplus production to dispose in the market. This means that such farmers are locked from benefiting on the higher prices for corn and wheat among other grains. Similarly the urban poor in these countries are outstretched in spending their meager incomes which is consumed in food items (Runge, 2010).
It has been established that changes in the fuel prices leading to enhancement of bio-fuel policies is usually reflected in the food prices including corn and others that are engaged in competition for land with corn. Part of these price impacts are transferred to the consumers via the changing prices in livestock, dairy, and bakery products. According to a study conducted by Hayes and others (2009), in the analysis of the potential production capacity of bio-fuels and the impacts it has on the grain and livestock sectors together with the repercussions on food prices and consumers
The U.S. corn price increased by 2.3, corn area planted increased by 1.22, and corn exports declined by 2.74. In response to higher corn prices, soybean area planted decreased by 0.88. This increased the soybean price by 1.04 and decreased soybean exports by 2.29. Wheat area planted also declined by 0.25, leading to a wheat price increase of 1.1. This also impacted on exports as the U.S. wheat exports declined by 0.67 (Hayes, et al., 2009, para 19).
From the analysis it is evident that concentration of corn to the production of bio-fuel has adverse effects on the food crop production and the general agricultural economy. These impacts do not only affect the United States but also other world economies especially those who are dependant on the US agricultural produce.
The impacts of the production of ethanol from corn have far reaching consequences to different sectors of the economy. Those advocating for the so called green energy will argue that the bio-fuel production has no detrimental impacts on both the environment and food security. They do this under the disguise that the United States can venture into the technology that will enable mass production of the feedstock and thus will not suffer the atrocities associated with food insecurity. On the contrary, they have failed to recognize the impact corn ethanol has had on food prices and the impacts that have been felt outside the US especially with those countries that are dependant on agricultural imports from the US and other bio-fuel producing countries. With the current policies leaning in favor of bio-fuel production, food prices are set to remain relatively high as there will be a competitive demand for corn.
I would like to determine whether the recent use of corn in the manufacturing of ethanol has had adverse effects on its availability to those who require it for use in food production and consumption. I feel that this is a significant issue as it has far reaching effects on other industries as well as societies around the globe. Countries such as Mexico rely on exports of U.S. corn in order to feed their populations. Domestic producers of livestock also rely on corn for use as a feed source for their animals. A recent increase in the allocation of available corn for use in the production of ethanol has caused market prices to increase substantially. This not only causes production costs to increase for livestock producers, thereby pushing live stock prices up, but also causes cost on quality of life issues to increase within lesser developed countries. Because of price increment, the inhabitants of these countries cannot afford to purchase products that are made from what was once a main staple in their diets. Mexico, for example, was forced to enact a price ceiling on tortillas just so that its citizens could eat (Addison, 2010).
Proponents of the use of corn for ethanol production say that the price increases are mostly due to an increase in the cost of growing the crops. Mainly because of significant price increases in the fertilizers needed for corn production. They also argue that the corn price increases are simply a function of the laws of supply demand, and therefore prices will drop once production increases. On the other hand, the opposing forces towards the use of corn to produce ethanol believe that the current approach and pace of ethanol production is rife with risks to traditional users of the food-grains. They argue that ethanol could be obtained from Brazil, where it is produced from sugar cane, for much less than it currently costs to produce it from corn. However, a government tariff on Brazilian ethanol, along with subsidies to corn growers for sales to ethanol producers currently makes this a more costly endeavor.
After all has been said and done, there is need to research on the effects of ethanol production from corn to other aspects of the economy. Using the various methods of research which I have learned, I will attempt to determine whether or not the use of corn for ethanol production has caused enough impact on pricing to be detrimental to other aspects of the economy. I expect that I will be able to establish a direct correlation between the increase in prices for various food items and the increased use of corn for the production of fuels.
Ethanol fuel
Ethanol fuel is also referred to as ethyl alcohol or grain alcohol and can be used as a high-performance motor fuel which is said to be environmentally friendly (Addison, 2010). The use of ethanol as a fuel is said to have been advanced by Henry Ford who is famous for designing the 1908 Model T that was able to run on ethanol. According to Ford, ethanol was regarded as the fuel of the future and his words seem to have been prophetic. At the time he discovered that ethanol could be used as an alternative fuel, there was developments in the oil industry that led to availability of cheap and readily available vehicle fuel. As the time passed by, limited oil refining and the resulting insatiable demand for energy in the United States has led to increasing demand for alternative source of energy with ethanol proving to be the favored alternative (Butzen Haefele, 2010). Ethanol is usually made from fermentation and distillation of starch andor sugar crops such as sugar cane, corn, sorghum, and wheat among other grain crops. It can also be made from corn stalks and wastes from vegetable and fruits. According to statistics, the United States is the words leading ethanol producer ahead of Brazil. It is estimated that over seven billion gallons of ethanol fuel was used in 2007. This accounts for about 12 of fuel sales in the United States. Ethanol blends are continuously being used across the world including countries like Brazil and South Africa. Brazil in particular has recorded a success story in the use of ethanol with a reported production of four billion gallons of ethanol annually. In Brazil, all the fuel is said to contain at least 24 percent of ethanol with most of the fuel being 100 ethanol. Many other countries across the world are also involved in the ethanol fuel programs and this indicates how ethanol production has continued to gain ground in the recent past (Addison, 2010).
Ethanol fuel has been preferred as it is said to be a renewable source of energy that is environmentally friendly. This form of energy can be derived from common food crops such as sugarcane, potatoes, manioc, and corn. There have been concerns about the usefulness of bio-ethanol in replacing the gasoline in regard to its production and use. This arises due to the fact that very large amount of land is usually required for the production of this kind of energy and also queries have been raised concerning the balance between the energy and pollution when the whole cycle of ethanol production is critically analyzed. The fact that ethanol fuel is deemed to be environmentally friendly has overridden the other concerns about the bio-ethanol fuel. It is said that corn ethanol directly emits 51 fewer greenhouse gas as compared to the gasoline for every gallon that is produced. This is according to a study that was carried out by researchers at the University of Nebraska-Lincoln. The researchers conducted an evaluation of the dry-mill ethanol plants using natural gases. These plants accounts for an approximated 90 of ethanol production in the United States (RenewableEnergyWorld.com, 2010). The research quantified the impacts of recent improvements in the corn-ethanol production process that includes crop production, bio-refinery operations, and co-product use. The study was conducted to dismiss claims that corn ethanol produces very little net energy and that it had insignificant potential of reducing the greenhouse gas emissions when compared to gasoline. With the use of improved technologies, the study found out that there was increased energy efficiency and great reductions in emissions. The research concluded that ethanol industries produces fuel that was between 48 and 59 less in direct-effect lifecycle greenhouse emissions than gasoline (RenewableEnergyWorld.com, 2010).
Production of Ethanol
The production of ethanol from the starch is one of the earliest ventures involving value addition that man was engaged in. though the basics of developing ethanol have remained basically constant, there has been continuous refinement to the process that has led to great efficiency. Two production processes have been advanced including the wet milling and the dry milling with the critical difference between the two being found in the initial treatment given to the maize grain (Renewable Fuels Association, 2010). Different companies of today have advanced technological innovations such as the cold starch fermentation, corn fraction, and the corn oil extraction. These companies also use the biomass gasification and the methane digesters in an effort to reduce the natural gas consumption. More work is being carried out aimed at reducing energy consumption as well as production costs. There is also need to increase the efficiency and cut on the gas emissions through the use of the available control technologies (Renewable Fuels Association, 2010).
In dry milling, the whole corns essential part often referred to the kernel or any other starch grain is initially ground into flour which is then processed without the separation of the different parts of the grain. The flour is then slurried with water in order to form mash onto which enzymes are added in order for the starch to be converted into a simple sugar known as the dextrose. Ammonia is then added to control the pH and as a nutrient to the yeast. The mash is then processed in a high temperature cooker so as to reduce the bacteria level before the fermentation process (Renewable Fuels Association, 2010). The mash is then cooled and relocated to fermenters and yeast added to it and the process of sugar conversion to ethanol and carbon IV oxide starts. The fermentation process usually takes between forty and fifty hours. During this process, the mash is kept cool and disturbed in an effort to accelerate the activity of the yeast. Upon completion of the process of fermentation, the resultant beer is relocated to a distillation a column in which ethanol is separated from the rest of the mash. The ethanol is then concentrated to around 190 proof through the use of usual distillation and later dehydrated to an approximated 200 proof in a molecular sieve system. This final product of anhydrous ethanol is then blended with 5 or so of a denaturant to make it unfit for human consumption. This is also necessary since it makes the ethanol not liable for taxation as a beverage alcohol. This is how the dry milling ends in the production of ethanol fuel (Renewable Fuels Association, 2010).
On the other hand, the wet milling involves the grain being soaked or steeped in water or dilute sulfurous acid for between 24 and 48 hours. Upon soaking, the corn slurry is then processed via a series of grinders in order for the separation of the corn germ to occur (Renewable Fuels Association, 2010). In the process, the corn oil is extracted from the germ with the remaining fiber, gluten and starch being further separated by the use of centrifugal, screen, and hydroclonic separators. Concentration of the steeping liquor is then done in an evaporator and the products co-dried with the fiber component which is sold as corn gluten feed to the livestock industry. The starch and the water that remains from the mash can be processed to yield different products. Of interest is the fact that the mixture can be fermented into ethanol following similar fermentation procedure as in the case of the dry milling processing (Renewable Fuels Association, 2010).
Trends in the production of ethanol
The concept of ethanol production and the protein-rich co-products from the grains has been in existence for quite a long time. The use of ethanol as fuel was advocated for the first time more than a century ago. The first large scale use of ethanol in gasoline was adopted as a domestic energy strategy in the 1970s. Ethanol has also been used in the 1980s as a replacement to octane and also as a weapon in the war against pollution in the 1990s (Sneller Durante, 2009). Nowadays, ethanol is used to meet a range of energy requirements, agricultural development as well as economic policy objectives. The ever-rising demand for the cleaner energy in the transportation sector has created a huge demand for the bio-fuels. These are the agriculturally derived renewable fuels including ethanol and bio-diesel. The production of the ethanol in the United States reached its highest peak in the year 2006 and the trend is not anywhere near to falling down. Though sugarcane, sorghum, and waste materials are used in the production of ethanol, corn has continued to be the primary source of ethanol production in the United States (Sneller Durante, 2009). Ethanol production in the United States has grown more than 25 each year starting from 2001. In the year 2007, the ethanol industry 6.5 billion gallons of fuel which was an increase from the less than 5 billion gallons produced the preceding year. This massive production is said to have used well over 2.3 billion bushels of corn or an approximated 17.5 of the all the corn that was produced during that year. At the moment, more than 130 plants are operational in over 26 different states and the same time more than 70 plants are being either expanded or built. The production capacity of the bio-fuel is estimated to be more than 7 billion gallons annually (Butzen Haefele, 2010).
Investments in the renewable source of energy especially in the bio-fuels have been tremendously increasing in the past few years especially in the developed countries and Brazil. It is argued that in the years between 2001 and 2008, the production of ethanol has grown three folds from 4.9 billion gallons to a massive 17 billion gallons while bio-diesel production rose from a paltry 264 million gallons to 2.9billion gallons (Runge, 2010). The United States and Brazil are the major producers of ethanol. Bio-diesel which is another bio-fuel is produced mainly by the European countries. Bio-fuel has been hailed as the timely alternative source of energy with a strategic value since it is renewable and reduces the dependence on the foreign oil imports. It is also argued that the bio-fuel benefits the farmer through the creation of a new market for corn supplies (Runge, 2010). An argument has also been advanced that being viewed as a rapidly expanding industry in the Midwest bio-fuel is engaged in the creation of employment opportunities in the once economically deprived rural areas and among small communities. Bio-fuel is also praised for the production of environmentally clean energy that minimizes on the greenhouse gas emissions as well as increasing on the octane rating of the gasoline. All these advantages together with legislative initiatives by the government can be said too be responsible for the rapid growth of the ethanol industry in the United States (Butzen Haefele, 2010).
With the widening market demands for the corn in the United States, the farmers have been forced to cope up with the ever-increasing demand for the product. In the year 2006, 10.74 billion bushels of corn were produced in which case 1.8 billion went to the production of ethanol. In the same year, 26 of the US grain sorghum was also involved in ethanol production. According to the United States Department of Agriculture, the year 2007 witnessed a tremendous increase in the farmland acreage meant for corn production from the previous 14.5 to 19.9 million acres. Much of the increase was attributed to the conversion of cotton and soybean acres to corn production (Sneller Durante, 2009). From this revelation it is clear that ethanol production has gained precedence among policy makers but the move is likely to ruin other sectors of the economy. This has been demonstrated by what is seen as seemingly moving away from other food-crop production to enhance bio-fuel production. The United States is seen as disregarding the importance of other key agricultural sectors with unprecedented focus on the bio-fuel sector. The corn export sector and production of other food crops are the first to experience the pinch of bio-fuel production. It is therefore important to note that bio-fuel production may have detrimental repercussion especially to the developing countries depending on food imports from the developed countries since the latter seem to be less concerned with the plight of the former (Msangi Ewing, 2008).
The production of the bio-fuel can not be tied down to the developed nations and Brazil as many more counties are joining the band wagon for the production of the fuel. The global energy resource is becoming scarce each day in the wake of an ever-increasing demand for fuel. Many countries have therefore resorted to bio-fuels in an effort to supplement their domestic energy consumption. Initially the developments in the bio-fuel industry were a preserve for the developed world but developing nations have also expressed a growing interest in the production of the fuel as well. Brazil and the United States account for well over 90 of ethanol production whereas the European Union boasts of 90 in the production of bio-diesel (Msangi Ewing, 2008). China and India have been engaging in the production of the bio-fuel and are expected to claim a significant share in the production of these bio-fuels. A number of developing countries have found the prospects of bio-fuel as an attractive venture but they are usually retracted by the huge investment required in the sector. Bio-fuel would require a committed government long-term support via subsidies, tax credits, among other incentives for both the producer and the consumer. These countries may be having suitable climate, land, and agro-ecological conditions suitable for the growth of the feedstock but most of them are not capable of facilitating the large-scale production of bio-fuels. These countries usually have inadequate resources that can not be diverted to matters of little importance at the expense of the priority development projects (Msangi Ewing, 2008).
The Energy Policies in the US
The Energy Act of 2005 that was signed into law had provisions that promoted energy efficiency and conservation, modernizing the domestic energy infrastructure and providing incentives for traditional and renewable energy alternatives. There are additional sections promoting the use of bio-fuels and the related products, describing special studies in bio-fuel production, and providing funds that covers the loan guarantees in the demonstration of feasibility studies ion the production of particular bio-fuels including Title II (Renewable Energy), Title IX (Research and Development), and Title XV (Ethanol Motor Fuels ). The 2002 Farm Bill establishes the new programs and grants which aids in the increase in the use of bio-fuels and the related products. This also advances development in the bio-refinery and re-authorizes the bio-energy programs (U.S. Department of Energy Office of Science, 2010). The Biomass Research Development Act of 2000 has been revised by the Energy Act of 2005. This Act directs the Department of Energy and Agriculture to amalgamate their biomass Research Development and goes further to establish the Biomass Research and Development Technical Advisory Committee which offers advice to the Secretaries of Energy and Agriculture regarding the strategic planning for the biomass Research Development (U.S. Department of Energy Office of Science, 2010).
The effectiveness of the current policies on bio-fuel has been doubted especially with the negative impacts the policies have had on the prices of the food products that relates to ethanol production. Though the proponents of bio-fuel production have dismissed the significance of their program on food prices, increasing evidence continues to link ethanol production to the skyrocketing food prices. According to Keith Collins, former Chief economist with the Department of Agriculture in the US, ethanol production will no doubt increase the demand for corn which is an essential animal feed and a component of most human diets. More farmers are encouraged to grow more corn for bio-fuel production at the expense of feed corn and other crops. The high demand being created will definitely be reflected in the high food prices (Martin, 2008).
Impacts of corn ethanol production to food prices
There has been continued interest to determine how bio-fuel production may impact on food security. Countries that are importers of both food and fuel are the worst placed when it comes to secure food supplies. This is because the countries which produce food in abundance have the capacity to produce both food and fuel whereas the food importers have to gamble between importing food and producing the bio-energy. The urban households are the hard hit since they purchases both food and fuel and have to adjust to the increasing food prices (Msangi Ewing, 2008). The rural folks may be able to engage in the production of both food and fuel for their subsistence consumption. Though higher agricultural prices may provide rural producers with access to the world energy markets, it has been established that in the long run this has a considerable impact on the food consumption and nutrition of these people. For instance, sugarcane and cassava are mostly used as feed-stocks in the bio-fuel industry in Latin America and that an increase in the production of cassava meant for the ethanol production may result in a rapid increase in its world pricing and this may pose a great threat to the rural poor who are dependant on the cassava as their staple food (Msangi Ewing, 2008).
There is an argument that large-scale bio-fuel production could lead to diversion of agricultural production away from food crops especially in the developing world. In this scenario, the energy-based crop programs would be in direct competition with food crops in several ways thereby causing shortages in food supply and skyrocketing prices. Brazil for instance suffered food shortages and price increase in food commodities and this was blamed on the Pro-Alcohol Program that was dedicated to the production of ethanol fuel. Corn is a staple food for many nations not just as food for human consumption but also for animal feeds. A decrease in the availability of corn for food in the global market may result in more hunger. In the long run, the prices for the corn and animal products will rise beyond the reach of many common individuals (Ziad, 2009). Despite such fears the US government approved the addition of more ethanol into gasoline following recommendations by the Environmental Protection Agency. A study conducted by the Alliance for Food before Fuel established that if ethanol production was expanded, then the food industry would part with half of the corn crop produced in the United States. This would be detrimental to other areas of the economy as it will adversely affect the other uses of the corn including animal feed production as well as the corn exports. According to Bill Lapp, the president of Advanced Economic Solutions, implementation of the increase in ethanol blend in gasoline will mean that corn acreage would rise to 111 million acres at the expense of other food crops (Ziad, 2009). The prices of corn in the United States have been souring in the past few years and therefore an increase in the amount of bio-fuels that are allowed in the blending of the gasoline are going to worsen the situation. According to the United States Department of Agriculture, an estimated 85 million acres of land were used in the production of corn in the year 2009 which translates to 12.1 billion bushels and 34 of the harvest is destined for ethanol production (Bjerga, 2009).
With increasing demand for corn and other feedstock crops, prices have remained relatively high in the wake of bio-fuel production. Consumers in the global market have been shocked with the increasing prices in grain commodities especially in the year 2008 and in the opening period of 2009. According to Runge (2010), between 2005 and 2008, the global price of wheat increased by 143, corn by 105, rice by 154, sugar by 143, and oilseeds by 197. In 2006 to 2007, the rate hastened in part due to the continuous demand for bio-fuels. The moderation witnessed in the prices is thought to be temporal by analysts when the tight stocks-to-use ratios are considered. In poor countries, the increase in the prices poses a direct risk to the disposable and food security. In these countries, the increase in food prices has been worrying for the poor population of more than a billion individuals who are persistently food insecure. Poor farmers in developing countries hardly support their households on subsistence basis and do not have the surplus production to dispose in the market. This means that such farmers are locked from benefiting on the higher prices for corn and wheat among other grains. Similarly the urban poor in these countries are outstretched in spending their meager incomes which is consumed in food items (Runge, 2010).
It has been established that changes in the fuel prices leading to enhancement of bio-fuel policies is usually reflected in the food prices including corn and others that are engaged in competition for land with corn. Part of these price impacts are transferred to the consumers via the changing prices in livestock, dairy, and bakery products. According to a study conducted by Hayes and others (2009), in the analysis of the potential production capacity of bio-fuels and the impacts it has on the grain and livestock sectors together with the repercussions on food prices and consumers
The U.S. corn price increased by 2.3, corn area planted increased by 1.22, and corn exports declined by 2.74. In response to higher corn prices, soybean area planted decreased by 0.88. This increased the soybean price by 1.04 and decreased soybean exports by 2.29. Wheat area planted also declined by 0.25, leading to a wheat price increase of 1.1. This also impacted on exports as the U.S. wheat exports declined by 0.67 (Hayes, et al., 2009, para 19).
From the analysis it is evident that concentration of corn to the production of bio-fuel has adverse effects on the food crop production and the general agricultural economy. These impacts do not only affect the United States but also other world economies especially those who are dependant on the US agricultural produce.
The impacts of the production of ethanol from corn have far reaching consequences to different sectors of the economy. Those advocating for the so called green energy will argue that the bio-fuel production has no detrimental impacts on both the environment and food security. They do this under the disguise that the United States can venture into the technology that will enable mass production of the feedstock and thus will not suffer the atrocities associated with food insecurity. On the contrary, they have failed to recognize the impact corn ethanol has had on food prices and the impacts that have been felt outside the US especially with those countries that are dependant on agricultural imports from the US and other bio-fuel producing countries. With the current policies leaning in favor of bio-fuel production, food prices are set to remain relatively high as there will be a competitive demand for corn.
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