Feeding people is one reason.
Inflation hits ice cream, pizza and chocolate.
What's the connection between ethanol, the biofuel produced from corn, and a cherry vanilla ice-cream?
Answer: the first is responsible for pushing up the price of the other.
The squeeze on ice-cream makers, chocolate manufacturers and pizza companies – all of whom use dairy produce as a raw material – is set to tighten as the price of a gallon of milk in the US – up 55 per cent in the past 12 months in some American states – is now the same as a gallon of petrol, with dairy prices accelerating faster than the cost of fuel.
Prices for dairy products have also risen because of increasing demand from China and the Middle East along with the drought in Australia, reduced subsidies in the European Union and the rocketing cost of corn.
Edited by Rogerdodger, 15 July 2007 - 11:27 PM.