Ethanol Group Responds to Schwan Foods Hike of Pizza Prices
Date Posted: July 27, 2007
OMAHA, NE -- Numerous studies have shown that rising energy costs have a significantly greater impact on food prices than a rise in corn prices, according to the Ethanol Promotion and Information Council (EPIC).
A 33 percent rise in crude oil prices which translates into a $1.00 per gallon increase in the price of regular unleaded gasoline, results in a 0.6 to 0.9 percent rise in the Consumer Price Index for food.
An increase of $1.00 for a bushel of corn would cause the CPI for food to increase by only 0.3 percent.
Increased labor, packaging and transportation costs all play a role in rising food prices, EPIC said.
In 2007, growers expect to plant over 90 million corn acres. This is expected to be the largest crop in over 60 years. And once again, U.S. farmers will meet the challenge of a diversified market: food, exports and energy.
"The ethanol industry has become a convenient scapegoat for corporate America to justify price increases to maintain profits," said Tom Slunecka, the executive director of EPIC.
"The debate over rising food prices has bordered on the ludicrous; the facts are conveniently omitted from this argument."
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