09 May 2013

Just an observation about Economics of "New" BioFuels

Here's a little something: I just saw a commercial about an energy company that was partnering with a company in Brazil to make motor vehicle fuel from "renewable" Sugar Cane.

Think about the following: The global price for consumer sugar will rise because of the diverting of that sugar away from use with food stuff. Thus the companies that purchase the sugar for their food products to sell to the general public will have to raise prices.

The general public will then push back on those producers because of the high prices. Therefore, in order for those producers to offset the rising prices they resort to using "High Fructose Corn Syrup". While, consumers will be happy that the prices of their favorite sweetened products are no longer rising, the cycle starts all over again this time with the fight against HFCS.

What say you?

Thank you,
Dave Guerra

P.S. I do invite you to join the conversation and tell me what you are thinking.

As always you can read this blog post in its original location at http://daveguerra.blogspot.com

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1 comment:

Power Cords said...

I am agree with you that before 10 years, economy was not such down that people could not be able to purchase their products. Now due to global economy issues, index rate of stock markets has come down. Although companies have increased pays of people but that not enough. Because due to raise of prices of good, now people are unable to but their usual life products.