Energy Costs More to Blame than Ethanol for Rising Food Costs

Ethanol has gotten a bad rap for causing the price of food to rise but also to blame is the rising cost of energy. Ethanol is not without fault, as a Congressional Budget Office report stated that ethanol production was responsible for 10 to 15 percent increase in food prices between April 2007 and April 2008; however, between 22 and 36 percent of the increase in food prices are due to the increase in the cost of energy sources. Tom Buis, chief executive of Growth Energy, an ethanol-industry association, explains:

The report released by the Congressional Budget Office confirms what we've known for some time - the impact of ethanol production on food prices is minimal, and that energy was the main driver in the rise of food prices

The Grocery Manufacturers Association, the American Meat Institute, the National Turkey Federation and the National Council of Chain Restaurants responded in kind:

Today's Congressional Budget Office numbers once again remind us of the unintended negative consequences associated with our nation's current policies which promote and mandate the conversion of massive amounts of corn and other food crops for biofuels production.

Whomever is to blame, rising food costs have hurt Americans during this economic recession.

Via: San Francisco Chronicle

Read More in: Alternative Energy | Food

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Posted by Jennifer Lance at April 14, 2009 1:57 AM