Ethanol’s role in higher food prices was the focus of CNBC’s Street Signs program on Friday.
One segment featured Ethanol Promotion and Information Council director of operations Robert White, along with Sean McBride of the Grocery Manufacturer’s Association and New York Times columnist Roger Cohen.
White and Cohen were in the position of defending biofuels. Leading in with a story that the Texas governor is calling for waiving half of the Renewable Fuels Standard to help cut food prices, White noted that there have been multiple studies, “including one from the great state of Texas this past month that clearly state that it’s energy prices, in particular petroleum prices, that are driving up food prices – three times as much as anything that commodity prices could do – ethanol just being one of those components of the corn market.”
Cohen, who has a column today about the issue, noted that there are many issues driving food prices up and he is “worried about this hysterical scapegoating of ethanol and all biofuels.”
“My fear is that we are going to throw out the baby with the bathwater,” Cohen said.
The reporter questioned why the ethanol industry needs subsidies to be competitive and White made the point that the main subsidy is a blenders credit to encourage oil companies to use ethanol, while the tariff on ethanol imports is to offset that credit meant to encourage domestic production of the fuel.
GMA’s McBride admitted that there are other factors driving food prices but claimed that as much as a third of the food price increases were due to “our food to fuel mandates that were passed in 2007.” Cohen disputed that figure. “For every theory, there is an institute putting out a report backing it up,” he said.
Listen to the CNBC segment here.
[audio:http://www.zimmcomm.biz/epic/cnbc-epic.mp3]


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The aim of the workshops is to promote direct marketing relationships between ethanol producers and fuel retailers and reduce costs for all parties involved. Ethanol plants, petroleum equipment suppliers, petroleum marketers and auto dealers are encouraged to attend these free workshops. Presentations will address E85 handling and storage, regulations and safety procedures, applying for the ethanol blender tax credit, and direct marketing of E85 from ethanol plant to retailer.
As oil prices rise, so does the price of diesel fuel. Truckers, construction companies and municipalities are feeling the pinch of $4-plus-a-gallon diesel fuel, and one town in Alabama has figured out that a less expensive… and greener… solution is biodiesel.
Gas City, Ltd. earned the VE85™ Retailer of the Year Award, VeraSun’s most prestigious award for 2007. The independent petroleum marketer is located in Frankfort, Ill., and owns and operates stations in northeast Illinois, northwest Indiana, Florida and Arizona. Currently, Gas City has 34 fueling locations in Illinois and Indiana offering VE85™. In addition to the Retailer of the Year Award, the company also received the Driving Change Award and the Fueling Growth Award for three of its Illinois VE85™ fueling locations in Schaumberg, Shorewood and Romeoville. Gas City’s Executive Vice President William Shireman was awarded the 2007 Ambassador of the Year Award.
The latest “Ethanol Report” podcast from the 
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