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Thursday, May 31, 2007

Ethanol popularity means less tequila

High gas prices were annoying but didn't bother me much until I learned about this.

High gas prices means that more people are interested in alternative fuels (this is good), that means ethanol is starting to take off (also good) which, in turn, means that corn is in much higher demand (okay), which means that farmer's are burning their agave crops in order to plant corn instead. This is very, very bad.

Tequila's popularity created a gold rush of sorts with the agave plant, which takes about 8 years before it can be harvested. There was so much agave planted that it drove down prices to rock-bottom levels, which also made it very easy for smaller players to enter the tequila market. Now that ethanol is popular, it's driving corn prices up and making it more profitable to burn the agave.

No good will come of this. Mark my words. NO GOOD!

Ethanol boom may fuel shortage of tequila

1 Comment:

gwen sutherland kaiser said...

i read about a similar problem in germany. farmers stopped growing hops to grow fuel for biodesiel!

i also read recently that ethanol actually causes ozone depletion and will become quite the eco controversy in the future. talk about adding insult to injury...