New York Steak Prices Surge Thanks to Ethanol
The following excerpt neatly summarizes the dilemma posed by ethanol to the consumer: to make your gas cheaper (they hope), ethanol production will make your food cost soar. Consumers of America–pick your poison. Meanwhile, the cost of labor and rent/overhead is spiraling upward in most major urban areas. The trend for middle class dining is now takeout, and well-known chains like Applebee’s and Bennigan’s are developing unit designs with significantly smaller footprints to save staffing and occupancy costs.
New York Steak Prices Surge Thanks to Ethanol
Where’s the Beef, Indeed: A Steak Shortage Hits N.Y.
By CHRISTOPHER FAHERTY
Special to the Sun
August 8, 2007
“The production of ethanol[...] is one major reason classic cuts of prime beef are becoming more and more expensive. Corn is the primary feed for cattle that produce USDA-grade prime beef. Corn is also the main ingredient for what many believe is the fuel of the future, ethanol. The production of ethanol has not only increased the demand for corn, it has made harvests more profitable for farmers, who receive [...] government subsidies when it is sold to ethanol producers. Even with the price of prime beef so high, and with Mr. Kalous predicting continued high prices, most steakhouses have yet to pass on the brunt of the drought to the customer.”
