agriculture

Gary Hirshberg argues that his company is doing a lot to support organic dairy farmers

The following is a response to a post by Ed Maltby, executive director of the Northeast Organic Dairy Producers Alliance.

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Londonderry, N.H.: These are difficult times for the organic dairy industry, and as we have demonstrated consistently for over a decade, we are deeply engaged in the effort to find solutions that balance escalating supply costs with the need to keep organic product prices within the average consumer's reach.

Stonyfield has consistently fought for farmers' interests, despite the pressures of the marketplace to reduce or hold prices for our yogurts. Over the past five years, the pay price we pay for organic milk has risen 34 percent, while Stonyfield has only raised the price of its 6-oz. yogurt 11 percent over the same period. We have endeavored to meet farmers' needs, while finding savings in other parts of our business.

The fact is, despite our supplier costs rising dramatically over recent years, we have worked hard to maintain an affordable price for the consumer. This is a very tough balancing act, but at the end of the day, the greatest thing we can do is to grow the organic segment that benefits all the players -- farmers, processors, and consumers. And Stonyfield has done just that, by converting 100 percent of our products to organic, increasing our purchases of family-farmer-supplied organic milk to over $60 million per year, and all the while investing in numerous strategies that will help our family farmers to thrive.

An honest, interesting statement from Piedmont Biofuels of North Carolina

I’m a fierce critic of biofuels, but I’ve always had a soft spot for small, region-based biodiesel projects that create fuel from local resources, providing jobs in the bargain. (I proudly ran Emily Gertz’s feature on the topic in our 2006 biofuels series.) The income from such projects remains within communities, rippling around and building […]

Rising food prices hit home around the world

Is a change coming to your cart? Photo: iStockphoto Hey you, in the supermarket line — yeah, you, the one with the stuffed cart. Are you ready to pay up for those groceries? You’d better be, pal. That’s the message from Bill Lapp, former chief economist for the food giant Conagra. “I think [U.S.] consumers […]

President hails cellulosic ethanol as a panacea

I’m offended: President Bush evidently hasn’t been following my string of posts about how cellulosic ethanol probably won’t ever be viable. Addressing a renewable-energy conference, the president fretted that the ethanol boom he set in motion is “beginning to affect the price of food.” He added: “So we got to do something about it.” And […]

If deals go through, three firms will own 90 percent of the U.S. beef market

In Meat Wagon, we round up the latest outrages from the meat and livestock industries. You’d be hard-pressed to find an industry more consolidated than beef-packing. Just four companies slaughter 83.5 percent of cows consumed in the United States. In standard antitrust theory, a market stops being competive when the four biggest players control 40 […]

New study from mainstream ag economists at Iowa State

Cellulosic ethanol represents a beacon on the horizon — the justification cited by wiseguys like Vinod Khosla for dropping billions per year in public cash to prop up corn ethanol production. Corn ethanol, you see, is a bridge to a bright cellulosic future. But the beacon is looking more and more like a mirage, a […]

Alcohol refinery may enhance tourist industry

Tourists, bird watchers, and native cattle herders in Kenya's Tana River delta may soon have a spanking-new alcohol refinery in the middle of their wetland. Granted, the wetland will be slightly less wet because a third of its water will be diverted to cropland. Always one to look for a silver lining, I would hope that this refinery will include an air-conditioned bar where tourists and herders alike can gather for happy hour after a long, hot day of wildlife viewing and cattle herding.

Paul Matiku, Executive Director of Nature Kenya (and might I add, a real pessimist) claims:

Large areas would become ecological deserts. The Delta is a wildlife refuge with cattle herders depending on it for centuries as well. There is no commitment to mitigation for the damage that will be done and no evidence that local incomes will be in any way improved.

*Cough*loser*cough*! Excuse me.

Here, Richard Branson, after publicly admitting that his investments in corn ethanol were a mistake, goes on to say:

"But, ah, there are countries in the world like Africa [actually a continent], um, like Mozambique, where they have got sugarcane plantations lying wasted, doing nothing ..."

Why the USDA wants to stop local food

This is one of those "in case you missed it" kind of posts. In yesterday's New York Times, Minnesota farmer Jack Hedin wrote an op-ed that shows very clearly how the federal deck is stacked against small, sustainable, local farms and in favor of Earl Butz's "get-big-or-get-out" mentality.

The commodity farm program effectively forbids farmers who usually grow corn or the other four federally subsidized commodity crops (soybeans, rice, wheat and cotton) from trying fruit and vegetables. Because my watermelons and tomatoes had been planted on "corn base" acres, the Farm Service said, my landlords were out of compliance with the commodity program.

I never ceased to be amazed at the all-encompassing power of the Golden Rule (The One Who Has the Gold Makes the Rules).

Can words describe how bad corn ethanol is?

Well, maybe my words can't describe how bad corn ethanol is, or Mayor Bloomberg's, or those of top scientists, but I think I have found someone's words that do: Opus's from Bloom Country.

First, however, the lastest grim news from Fortune: "The ethanol boom is running out of gas as corn prices spike." Yes, "plans for as many as 50 new ethanol plants have been shelved in recent months." Why?

Spurred by an ethanol plant construction binge, corn prices have gone stratospheric, soaring from below $2 a bushel in 2006 to over $5.25 a bushel today. As a result, it's become difficult for ethanol plants to make a healthy profit, even with oil at $100 a barrel.

If you can't make money with oil at $100 a barrel, you are not much of an alternative fuel.

But I know what you're thinking -- if corn ethanol is so bad, what's wrong with plants being scrapped? Well, the corn ethanol business is here to stay. The corn ethanol mandate from the most recent energy bill requires doubling supply from current levels. Fortune explains what that means: