Low on Sugar

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According to a Wall Street Journal report, food manufacturers are warning of shortages if the Obama administration doesn't ease import restrictions. However, the American Sugar Alliance disputes the claims and accuse the food manufactures of "crying wolf" when their will be a surplus predicted by USDA. Sugar prices are inflated by demand in Brazil for ethanol fuel and poor harvest in India.

Sugarcane Harvest

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Louisiana has been having great weather for the sugarcane harvest of 2008. Early in the season estimates were pessimistic and predicted decreased yields because of the two hurricanes. The storms caused stalks to fall over (lodged) and some have broken, which result in lower tonnage produced. However yields have not been as bad as first feared.

Food vs. Fuel

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The global food supply crisis is causing many countries to rethink the biofuel mandates. Crop production for bio-fuel means reductions in grain and soy growing, which (along with market speculation) leads to an increase in prices.
New attention is being given to affordable grains versus the need for renewable energy from biofuels.

Biofuel

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We have hit a few bumps during the race for alternatives to fossil fuels. First generation biofuels have limitations including threatening food supplies and biodiversity.





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Lifecycle analysis of the production of ethanol from corn and biodiesel from soy shows only modest net energy gains when you subtract the energy costs of fuel production, pesticide use, transportation, and by-products that remain.

Second generation biofuels are being developed to attempt a transition to producing more sustainable feedstocks. Cellulosic ethanol made from grasses like switchgrass, prairie grasses, or Sugarcane bagasse waste is emerging as the favorite to overcome the environmental and economic challenges.