Commodity: Corn By David, Lydia, Solomon Political Science 333 Spring 2011

Industrial Uses of Corn So versatile…

Diverse Uses There are so many uses for corn There are so many uses for corn Used in packaging material Used in packaging material Used as adhesives Used as adhesives Used for explosives Used for explosives Used for insecticides Used for insecticides Corn is probably the most studied commodity in the world Corn is probably the most studied commodity in the world

Corn in Research There are many major studies of corn There are many major studies of corn Corn is studied in many different disciplines Corn is studied in many different disciplines Genetics Genetics Physiology Physiology Biochemistry Biochemistry

High Fructose Corn Syrup Yum…?

History: HFCS First produced in 1957 but unsuccessful in making it viable for mass production First produced in 1957 but unsuccessful in making it viable for mass production Introduced in mass production of Japan in 1965 Introduced in mass production of Japan in 1965 HFCS is introduced to UW processed food/soft drink industry in the late 1970s HFCS is introduced to UW processed food/soft drink industry in the late 1970s US 1977 Sugar Tariffs and Sugar Quotas increased cost of imported sugar causing US manufacturers to look for cheaper sources a.k.a. HFCS US 1977 Sugar Tariffs and Sugar Quotas increased cost of imported sugar causing US manufacturers to look for cheaper sources a.k.a. HFCS Now, in the US, HFCS has primarily replaced table sugar in the food industry Now, in the US, HFCS has primarily replaced table sugar in the food industry

Health Effects: HFCS Obesity Obesity Mercury traces Mercury traces Metabolic Syndrome Metabolic Syndrome Cardiovascular Disease Cardiovascular Disease Diabetes Diabetes Non-alcoholic Fatty Liver Disease Non-alcoholic Fatty Liver Disease

Production: HFCS US consumption of HFCS has gone from 0.5 pounds/year in 1970 to 59.2 pounds/year in 2005 US consumption of HFCS has gone from 0.5 pounds/year in 1970 to 59.2 pounds/year in 2005 In other words, 2 calories/day in 1970 to 200 calories/day in 2005 In other words, 2 calories/day in 1970 to 200 calories/day in 2005 Historically, sugar was rare in the average human diet Historically, sugar was rare in the average human diet The mass production of HFCS have revolutionized that concept in ICs The mass production of HFCS have revolutionized that concept in ICs Ultimately unavoidable in the Western diet Candy Soft drinks Processed foods Campaigns against HFCS Response from corn refineries “Corn sugar?”

Ethanol From ethanol fuel production tripled From ethanol fuel production tripled United States and Brazil are the countries that use ethanol the most United States and Brazil are the countries that use ethanol the most United States uses corn to make ethanol, Brazil uses sugar United States uses corn to make ethanol, Brazil uses sugar Often seen as a form of renewable energy, can be made from corn, sugar cane, and potatoes Often seen as a form of renewable energy, can be made from corn, sugar cane, and potatoes United States- blends up to 10% ethanol, 90% gasoline United States- blends up to 10% ethanol, 90% gasoline

Ethanol Pro/Cons Seen as a renewable resource, but is it? Seen as a renewable resource, but is it? Sugar costs much less to produce ethanol than corn does Sugar costs much less to produce ethanol than corn does Sugarcane vs. Corn ethanol energy balance 8 vs. 1.3 Sugarcane vs. Corn ethanol energy balance 8 vs. 1.3 Ethanol produces 19% more CO2 than gasoline for the same energy Ethanol produces 19% more CO2 than gasoline for the same energy Corn takes in CO2, so it can help the environment Sugarcane is 5-6 more times more efficient than corn for ethanol production Can make food prices higher Growth in ethanol prices caused gasoline prices to fall by as much as $0.40

Ethanol Legislation United States Government supports the corn lobby, not willing to support sugar for production United States Government supports the corn lobby, not willing to support sugar for production Heavy subsidies for corn ethanol- $5.5 to $7.3 billion per year Heavy subsidies for corn ethanol- $5.5 to $7.3 billion per year In other words, subsidies can reach as much as $1.38 per gallon In other words, subsidies can reach as much as $1.38 per gallon Tariffs on sugarcane-ethanol reaching $0.54 per gallon Tariffs on sugarcane-ethanol reaching $0.54 per gallon