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Despite occasional headlines lamenting that “high” corn prices are driving up the cost of food, the truth of the matter is corn prices have very little to do with the prices you see on foods in the grocery store – no matter if corn is $3 per bushel or $5.
To help demonstrate the tiny value of corn in common food products, the Nebraska Corn Board includes two lists below, as well as a YouTube video--Farm Value of Food. One list comes from last year and is based off $5 corn, while the other was compiled earlier this year when corn prices were closer to $4. (Since then, corn prices have fallen to around $3.)
Occasionally, people will attempt to tie ethanol to higher food prices – arguing that the use of ethanol is driving up corn prices and, therefore; food prices.
However, over the last year, corn prices have fallen significantly at the same time ethanol production has grown, proving that the connection between the two is not all that strong. Supporting this is a Congressional Budget Office report that examined corn and food prices between April 2007 and April 2008. For details on this report click here.
B A 12 oz box of corn flakes contains only 6 cents worth of corn. At $4.00 a box in the grocery store, you can clearly see how much of the price goes towards labor, marketing and transportation.
There is only 13 cents of corn in a gallon of milk. Dairy farmers receive 91 cents for the gallon of milk that is sold in the store for $2.99.
It takes only 29 cents of corn to produce a dozen eggs. Eggs bought at a store are $2.39 – but the poultry farmer receives only about 60 cents.
It takes only 20 cents of corn to produce a pound of ground beef and 26 cents of corn per pound of pork. The livestock producers’ share of the grocery store price is 81 cents for the ground beef and 44 cents for the pork; while you pay $3.00 a pound for ground beef and $5.99 for a ham at the store.
A 2 liter bottle of soda contains less than 7 cents worth of corn. Corn is found in soda as high fructose corn syrup (HFCS). Less than 5% of our crop is used to make HFCS, which is found in small amounts in cereals, snacks and drinks.
The farmers share and the grocery store price are based on the July 2009 Farmers Share of Retail Food Dollar published by National Farmers Union.
A 12 oz box of corn flakes has only 7 cents worth of corn in it. At around $3.00 a box you can clearly see how much of the price goes toward labor, marketing and transportation.
There is only 16 cents of corn in a gallon of milk. Dairy Farmers receive $1.55 for the gallon of milk that is sold in the store for $3.99.
It takes only 36 cents worth of corn to produce a dozen eggs. Of the $1.99 those eggs sell for in the grocery store the poultry farmers receive only 84 cents.
It takes only 25 cents of corn to produce a pound of ground beef, and 32 cents for a pound of pork. The livestock producers’ share of the grocery price is 96 cents for beef and 54 cents for pork. This is well below the prices charged in the grocery store!
A 2 liter bottle of soda contains only 9 cents worth of corn. Corn is found in soda as high fructose corn syrup (HFCS). Less than 5% of our crop is used to make HFCS, which is found in small amounts in cereals, snacks and drinks.
The farmers share and the grocery store price are based on the July 2008 Farmers Share of Retail Food Dollar published by National Farmers Union. |
