Remember earlier this year when ethanol was being blamed for just about all ills, including record high food prices? Well, now that corn prices have dropped to about half of the summer highs of $8/bushel, food prices remain high.
On October 17, The Wall Street Journal reported that while corn and soybean prices fell dramatically in September, grocery store prices increased about 8%, and cereal and bakery prices rose 14%.
In a press conference at the National Press Club in Washington, D.C. today, Growth Energy, a new organization comprised of ethanol producers, pointed out that food giant Kraft has seen revenues increase 20% over the year-earlier period and that Kellogg saw sales increase 9.5% in the third quarter.
One of the reasons for the formation of Growth Energy is to “set the record straight about ethanol,” said Jeff Broin, CEO Poet, a leading ethanol producer. Poet, along with ICM, Western Plains Energy, Amaizing Energy Cooperative, Hawkeye, Green Plains and the National Corn Growers Association, formed the new organization to provide what Broin calls “a fresh, aggressive voice in the ethanol debate.”
Growth Energy is launching an ad campaign that dispels the food vs. fuel fight, beginning with ads in Roll Call and The New York Times. For more on the ad campaign plus a policy brief, visit www.growthenergy.org.