Agrofuel Industry Raising Corn Prices in Central America-Corn Feeding Cars Not People
The boom of the agrofuels industry, launched mainly by US agribusiness corporations, has already demonstrated negative impacts in Mexico and most recently in Central America. The price of corn has skyrocketed, and when we consider that corn is the main staple food for these cultures, the result has been devastating for everyone, but especially for people living in poverty. Not all of the corn is grown locally due to the large amounts of corn now exported by the United States. Corn imports have increased steadily since early 2000. In 2006—the year CAFTA was ratified—corn imports doubled. But by 2007, producers in the US were no longer interested in exporting as much corn to Central America. With the higher corn prices, it became much more profitable for farmers to fuel cars than to feed people. Corn and sugar plantations throughout Central America, are now targeted to replace fossil fuels.
In January 2006, one metric ton of yellow corn cost US $69.00. In March 2007, the cost was US $148.00—an increase of 114% per ton in just a year. Livestock farmers in Costa Rica – the strongest in Central America - have indicated that their production costs have increased due to the decrease of corn imports for animal feed. This country only produces 18% of the white corn they consume. Other countries have experienced similar increases for a quintal (100 pounds) of corn:
Country Jan 2007 July 2007 Aug 2007 % Inc.
Guatemala US $ 13.70 US $ 17.76 30%
Honduras US $ 11.90* US$18.75 57%
El Salvador US $ 11.50 US $20.88 82%
Nicaragua US $ 24.40 US $ 30.00 23%
*US $ 8.75 in August 2006
In all the above countries, the price of tortillas has gone so high that some politicians have declared a state of emergency. The tragedy continues as agribusiness corporations aggressively promote plantation use for fuel export instead of food for Central Americans. It’s ironic that environmentally-friendly cars will drive more people into hunger unless countries re-think their agrofuel policies.—M Lanuza
