I live out here in ethanol land, own a farm, and have been writing an article on the subject. This is something I have some first hand knowledge about. You are making several mistakes.
1. Only the sugars are taken from the corn to produce ethanol. The solids (proteins) are left and are a very high quality cattle feed. Called "DDG", it's also fed to poultry. Most of the grain remains "in the food chain."
2. Relatively little corn is used for human food, especially in this country. Most is used for animal feed, or "ingredient" products such as corn syrup (high fructose syrup) as used in soft drinks.
3. It is relatively expensive to ship corn across the ocean, and where the people are really as poor as you are talking about they can't afford it anyway. I once worked in a very large IBP beef plant (as a hand therapist) and know first hand that all exported beef went to relatively wealthy countries such as Japan. I don't ever recall them shipping beef/pork to really poor countries.
4. The $$ amount of grain in most food products is actually pretty small. Did you know that a loaf of bread that sells for ~$1.89 has about 4 cents worth of wheat in it? Wouldn't it be a GOOD thing if farmers, who often live near the poverty line, get more $$ for their crops?
5. Half of all corn grown in my state (and I believe Iowa also) now goes to ethanol. Despite this, there has only been a modest rise in corn prices. Are you aware of the HUGE piles of corn still sitting out here on the ground since last Fall because the elevators are packed full?
6. Soy and corn are just the first step. New strains of grasses are being researched and ways to process them that will provide considerably higher yield of ethanol by breaking down cellulose (instead of sugar) into ethanol. Remember that both sugar cane and corn are types of grass.
7. Ethanol plants are springing up everywhere in my region. Most of these are owned by locals rather than large corporations. They provide real, solid jobs with benefits in rural areas that have long been in decline. This is the real effect of ethanol--turning around the declining economies of small town America. I'm the type that worries about the poor/near poor in this country first. I think the idea that ethanol/biofuels will somehow hurt the poor is largely propaganda. I have yet to hear anyone who understands the complicated ag industry mention it--only urban people who are not familiar with agriculture.
Out here in my neck of the tracks, ethanol has had a MAJOR effect on railroading. Lines that once lay dormant are now coming back into service. Crews and MoW workers are bein hired right and left. DME often runs out of train crews and long grain & ethanol tanker trains sit on sidings. All of this just adds to the vitality of our local economies.
Anything we can do to decrease the money sent to the often messed-up parts of the world that produce oil is a very good thing, it seems to me. I personally would rather see the small town folks of Iowa get the money that now goes to that goofy Chavez guy in Venezuala or the sheiks.
Kent in SD