Growth Energy, GMA Battle Over Food Prices
Growth Energy, a new ethanol coalition, has stepped up its campaign to challenge the Grocery Manufacturers Association's (GMA) assertion that expanded ethanol prices has caused higher food prices. Feeling that GMA has been misleading the American p
November 24, 2008
Growth Energy, a new ethanol coalition, has stepped up its campaign to challenge the Grocery Manufacturers Association’s (GMA) assertion that expanded ethanol prices has caused higher food prices. Feeling that GMA has been misleading the American public, Growth Energy is fighting back with ads in major publications.
“Though the clamor of the food-vs.-fuel debate has died down some as corn prices have fallen, representatives of Growth Energy said GMA and the national media have left many questions unanswered,” reports Todd Neeley, DTN staff reporter.
At a press conference, Growth Energy officials noted that numerous studies have pointed to a number of factors driving up food prices, not just ethanol, including crude oil price hikes and weather-related crop disasters worldwide. Still, GMA has focused on ethanol alone.
Growth Energy pointed out that if GMA’s contention that biofuels were pushing up food prices when commodity prices were higher, the current lower prices of corn should already be reducing food prices now. This proves that GMA’s claims were fundamentally flawed, the group stated.
In late-breaking news, the Ethanol Promotion and Information Council expected to join Growth Energy, lending the new group even more credibility.
(Sources: DTN, various wire sources)