Mr. Smith is being walloped by higher soy prices as well, the second-biggest ingredient the company uses. Those prices have been rising too as farmers switch into corn crops. "It's a double whammy," he says. "It's a tough thing if you're trying to buy an alternative crop like we are." ::Globe and Mail
UPDATE: It's hitting our ice cream too! From the Times Online:
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.
This month, the price of milk in the United States surged to a near-record in part because of the increasing costs of feeding a dairy herd. The corn feed used to feed cattle has almost doubled in price in a year as demand has grown for the grain to produce ethanol.
Christina Seid, whose family have been making ice-cream at the Chinatown Ice Cream Factory for 28 years, said yesterday that she expected to have to raise her prices, along with all competitors in the short term. "We are holding out as long as we can, but prices will rise," Ms Seid said. ::Times Online