Beef prices are rising, gasoline prices are rising, and it’s all thanks to corn

Beef prices are rising, gasoline prices are rising, and it’s all thanks to corn (Alberta Times) Have you noticed that beef prices are much higher than normal? Have you noticed that gas prices keep climbing? …

(Alberta Times)

Have you noticed that the price of beef is much higher than normal? Have you noticed that gas prices keep climbing? Data from the U.S. Department of Agriculture show that U.S. beef prices rose 11% last year and are expected to rise another 10% this year; meat demand is growing, but farmers are raising fewer cattle. Many farmers are selling off their cattle because of the recent drought in the United States, which has led to soaring prices for the livestock's main feed - rice, and high operating costs. In addition to rising feed prices, beef demand is also rising because Canada, Japan, and China all import beef from the United States. At the same time, pork prices have also begun to rebound: in the past three years, the price of pigs ready for slaughter has increased by nearly 30%; the ethanol industry's increased demand for corn has led to an increase in corn prices, which has also affected the pork industry. Ethanol is extracted from corn, and more ethanol is added to gasoline in the United States. In addition, the U.S. government recently terminated tax subsidies for the ethanol fuel industry, so the price of corn has increased, and the price of gasoline has also increased. Gasoline prices could exceed $4 a liter this spring, according to Wall Street data.