Guangzhou, Guangdong -- (SBWIRE) -- 01/18/2011 -- Some food prices have experienced sharp rises caused by raw material shortage during 2010. Among the major raw materials of foodstuffs, corn has also witnessed a remarkable price rise. Owing to the prices of domestic corn higher than that in overseas market, the corn import volume has reached a record, almost 20-45 times higher than that during the past four years.

Since 2006, people have attributed shortage of corn supply to fuel ethanol production. In 2010, fuel ethanol production has been accused of “competing for food with human being” by the public again. The accusation has been proved false by some people since the corn consumption in fuel ethanol production accounted for only 2.3% of the total output of corn in 2010 in China. However, to avoid further dispute over this matter, currently the Chinese government is promoting non-grain fuel ethanol production on a national scale. Also, methanol gasoline might get an authorized entrance to a larger market after the M15 national standard is officially issued in the first half of 2011. Furthermore, domestic biodiesel has been officially exempted from consumption tax again since December 24, 2010, which boosts the growth of domestic biodiesel industry.

The corn price rise will also direct other biomaterial and bio-based chemical producers to select other affordable raw materials, like straw, or to plan capacity expansion in order to further cut down the current production cost.

Given that the corn prices might probably still remain high in 2011, corn starch-based products will directly see prices’ upward trends or being high, which will further promote the food production cost in 2011.

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