New Study Shows Ethanol Not Responsible for Food Price Increases

Energy Prices Play Larger Role in Cost of Food than Corn


MILWAUKEE – A study released today by an independent research group shows that ethanol’s impact on food prices is negligible, particularly when compared with the impact of energy costs.


The study by John Urbanchuck of LECG, LLC shows that a $1 per gallon increase in the price of gasoline results in an increase in food prices that is twice as high as a $1 increase in the price a bushel of corn.


The study also showed that distiller’s grains, a byproduct of ethanol production and a high quality livestock feed, help put downward pressure on food prices as livestock farmers purchase the grains instead of corn. 


“Bio fuels like ethanol are cheaper, cleaner alternatives to fossil fuels that are made right here in Wisconsin,” Morby said.  “There’s no question that bio fuels should be part of the answer as we look to grow Wisconsin’s economy, reduce our impact on global warming, and reduce our dependence on foreign oil.” 


The Wisconsin Bio Industry Alliance is Wisconsin’s first-ever alliance of top leaders in the Bio Industry focused on the development of bio-based renewable energy, power, and products in Wisconsin.  The Alliance is a diverse group of businesses, environmental groups, and statewide and local organizations that have come together to build both public and legislative awareness of the Bio Industry in Wisconsin.


For more information about the Alliance, or to find out how to join, please visit our website at


The full version of the LECG report can be viewed at