Ethanol Production Increases & Corn Prices Drop as Food & Gas Prices IncreaseThu, 10 Jul 2014 10:26:00 CDT
In light of recent data that definitively disproves the myths propagated by Big Oil and Big Food that ethanol increases food prices, Tom Buis CEO of Growth Energy released the following statement:
“Time and again Big Oil, Big Food and special interests have attacked the ethanol industry, blaming them for increasing 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.”
“Furthermore, while Big Oil continues its fear mongering about the use of ethanol, American consumers just experienced a six year high in gas prices over the Fourth of July holiday weekend, and prices continue to hover at record prices while ethanol is trading roughly a dollar per gallon below the cost of wholesale gasoline. Clearly global political unrest is once again responsible for driving consumer fuel prices higher. 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 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.”
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