Growth Energy is attacking the myth that ethanol production increases food prices.
Tom Buis, CEO of Growth Energy notes that time and again, Big Oil, big Food and special interests are attacking the ethanol industry and placing blame on them for rising food prices. “But when you look at the facts, nothing could be further from the truth. Recently, there has been a surge in ethanol production, while at the same time corn prices have been falling. Currently, corn is trading at $3.99, half the cost of what it traded for two years ago, yet food prices continue to rise because the cost of oil continues to climb. In fact, a recent World Bank study outlines how crude oil prices are responsible for 50 percent of the increase in food prices since 2004.”
Buis continued by noting that while Big Oil continues its “fear mongering” about the use of ethanol, American Consumers have just experienced a six year high in gas prices over the 4th of July weekend. In fact, he said, gas prices continue to stay at near record prices while ethanol is trading around one dollar per gallon below the cost of wholesale gas.
“Clearly global political unrest is once again responsible for driving consumer fuel prices higher, ” said Buis. “And, because of Big Oil’s monopoly over the fuels market, consumers currently have to pay more to drive to the store and the hits keep on coming when they check out at the grocery line! What I find interesting is that while Big Oil and Big Food continue to propagate the same old myths about food and renewable fuels, they are not as forthcoming when it comes to explaining to the public why they are making record profits on the backs of American consumers.”
“As President John Adams once said, ‘Facts are stubborn things.’” “Clearly,” said Buis, “this is the case for Big Oil, Big Food and their cronies, who are doing everything in their power to find a straw man to divert attention away from their excessive appetite for increased profit margins at the expense of hardworking American families.”