FEDERAL
FOOD-TO-FUEL
POLICIES CAUSE
FOOD PRICES TO
RISE
Food Before Fuel
Calls On
Presidential
Candidates
& Congress To
Revise Ethanol
Policies
BALTIMORE, MD (June 17, 2008) – Today, Food Before Fuel – a national
coalition of
more than 20
environmental,
retail, hunger,
Hispanic and
food industry
groups – brought
its campaign to
change the
nation’s
food-to-fuel
policies to
Maryland, on a
media conference
call
highlighting how
federal ethanol
mandates are
contributing to
rising food
costs.
Domestic food prices are rising 6% annually – more than twice the rate
of inflation.
And the
International
Monetary Fund
reports that
U.S.
food-to-fuel
policies – which
mandate the
conversion of
more than
one-third of all
U.S. corn to
ethanol – are
responsible for
more than 30% of
food price
inflation,
globally.
In Maryland, the coalition’s national leaders –
including the
Grocery
Manufacturers
Association, the
Earth Policy
Institute and
the Hispanic
Institute – have
been joined by
the Maryland
Restaurant
Association, the
Maryland
Retailers
Association, the
Maryland-Delaware-District
of Columbia
Beverage
Association,
UFCW Local 27
and Phillips
Foods.
“Sometimes good intentions lead to bad policy,” said Scott Faber, Vice
President of
Federal Affairs
for the Grocery
Manufacturers
Association.
“When Congress
passed the
Energy
Independence and
Security Act of
2007, I’m sure
that no one
intended for
corn prices to
double. But
that is
precisely what
has happened.
The result is
bad for our
economy, bad for
our environment
and bad for
American
consumers – who
are paying more
in grocery
stores and at
gas pumps. We
need to change
this policy that
pits fuel
against
affordable
food.”
The Food Before Fuel Campaign’s statement of principles urges
policymakers to:
“revisit and
restructure
policies that
have increased
our reliance on
food as an
energy source,
and to carefully
address how to
develop
alternative
fuels that do
not pit our
energy needs
against
affordable food
and
environmental
sustainability.”
Congressional policies that sought to reduce dependence on foreign oil –
through mandates
and additional
subsidies and
tariffs –
produced several
unintended
byproducts:
·
Rising corn
prices have
driven up other
food prices.
Corn is the
major component
of livestock
feed, so more
expensive corn
means more
expensive milk
(up 22% in three
years), eggs (up
69%), poultry
(up 12%) and
beef (up 10%).
·
Adding corn
ethanol to
gasoline reduces
gas mileage and
increases the
cost of filling
our car’s fuel
tanks. Other
non-food ethanol
burns more
efficiently.
·
Food-to-fuel
policies have
led to expanded
corn planting,
changing land
use and
threatening
crucial
ecosystems.
·
The increased
chemical
fertilizer use
associated with
expanded corn
and soybean
production will
increase the
amount of
nitrogen and
phosphorous
being washed
into rivers and
the Chesapeake Bay.
“We can move toward energy independence without driving up food prices,
with fact-based
policies that
take into
account science
and economics.
There are
sustainable
answers to our
energy needs
that protect
consumers,
family farmers
and our
environment.
And our
coalition
intends to
contribute to
finding better
solutions,” said
Faber.
The Food Before Fuel Campaign’s website, containing studies, fact sheets
and statements
from experts is:
www.foodbeforefuel.org.
Organizations
that have signed
on to the
campaign
include:
American Bakers Association MANA, A
National Latina
Organization
American Beverage Association National
Cattleman’s Beef
Association
American Conservative Union National
Chicken Council
American Frozen Food Institute National
Association of
Chain
Restaurants
American Meat Institute
National
Restaurant
Association
Competitive Enterprise Institute
National Retail
Federation
Earth Policy Institute
National Turkey
Federation
Environmental Working Group Pilgrim’s
Pride
Corporation
Food For All
Popeye’s Chicken
& Biscuits
Grocery Manufacturers Association Snack Food
Association
The Hispanic Institute
Third Way
International Dairy Foods Association Tortilla
Industry
Association
International Foodservice Distributors Association Women Impacting
Public Policy
Maryland-Delaware-DC Beverage Association
Maryland Restaurant Association
Maryland
Retailers
Association
Phillips Foods
UFCW Local 27
