> does the production of corn ethanol really increase food prices?
It might be hard to determine. But here's an anecdote, the price of short ribs has dramatically gone up. My wife is Korean, so short ribs (galbi) are a favorite dish. We used to be able to buy several pounds of ribs, a huge pile of them, for $20-30. They were so cheap, and there were so many of them, and the way they were packaged was in such large packages, that it would take us several meals to get through them. It used to be a regular thing for us to go get some ribs, grab a few friends and spend a lazy afternoon in the park cooking Korean bbq and we'd all go home stuffed. We used to even buy it when we were much less well off it was such a cheap and satisfying meal.
Only a decade later, $30-40 buys you enough for a couple people, if we eat a side of rice and other food with it.
As a result, galbi has turned into a rare treat, despite us being much better-off financially, it's so expensive compared other foods that it's just not worth it anymore. Even restaurants we frequent will have a menu of $10-12 meals and then galbi (1 person's service) will be something like $18-20.
My understanding is that over 90% of cows are fed mostly with corn feed, so if corn goes up, the price of cows go up.
We're also starting to see some minor kickback against HFCS. The story is that it's bad for health, but my personal theory is that companies are trying to rework supply chains around other sugar sources in the event corn subsidies disappear. "Mexican Coke" and "Throwback Pepsi" are regulars at my local stores. Sold at a slightly higher price than the HFCS varieties.
I haven't read this yet, but it appears to look at some of these relationships. http://www.card.iastate.edu/policy_briefs/display.aspx?id=11...