St. Louis, Missouri
May 19, 2008
Source: U.S.
National Corn Growers Association
(NCGA)
At a Monday press conference,
U.S. Department of Agriculture
officials joined in the public conversation about the
relationship between food prices and biofuels, stressing that
the debate should not be about food “versus” fuel, but about the
fact that we can have both food and fuel.
“The press conference today echoed our message to consumers that
corn ethanol production plays just a small role in food price
increases,” said National Corn
Growers Association President Ron Litterer. “American corn
farmers will continue to work to meet the country’s food, fuel,
and feed needs.”
At the beginning of the briefing, Agriculture Secretary Ed
Schafer put the current food and fuel debate into perspective.
“Higher oil prices affect much more than just the cost of
driving,” said Schafer. “They are actually one of the major
factors behind higher food costs.”
Schafer reiterated that developing diversity in this country’s
portfolio of fuels is an urgent matter and one that remains
central to the country’s energy and food security.
USDA’s data revealed that higher food marketing and
transportation costs, along with export restrictions have
impacted food prices. USDA chief economist Dr. Joe Glauber
stated that biofuels—such as ethanol—contribute to higher
prices, but acknowledged that higher corn prices pass through to
a retail prices at a small rate. Glauber referenced a study by
the Council of Economic Advisers showing that the total global
increase in corn ethanol production accounts for about 3 percent
of the recent increases in global prices. Glauber noted that the
farm value of food costs is less than 20 percent.
Schafer added that the growing middle class abroad, prosperity
in developing markets, and drought have impacted global food
prices. And he also responded to a reporter who asked about the
Grocery Manufacturers Association’s “undercover campaign”
against ethanol. Schafer acknowledged that the association was
behind the campaign and said that USDA’s data didn’t reflect the
organization’s claims.
Source: U.S. Department of Agriculture |
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