Thursday, July 14, 2011

Just in--

Study: Evidence Doesn’t Link Ethanol to High Food Prices

Washington--There is no statistical evidence to support the argument that growth in ethanol production is driving consumer food prices higher, according to a comprehensive study released Monday by Informa Economics.

Rather, the report concludes that retail food prices are determined by a complex set of interrelated factors, including supply chain costs for energy, labor, transportation, packaging and other market-related expenses.

The new study, titled “Analysis of Corn, Commodity and Consumer Food Prices,” concludes that “the statistical evidence does not support a conclusion that there is a strict ‘food-versus-fuel’ tradeoff that is automatically driving consumer food prices higher.”

“Ethanol is not the only driver influencing corn prices, and corn prices have not been the only factor driving consumer food prices,” said Bruce Scherr, CEO and chairman of Informa Economics. “Rather, there is a complex and interrelated set of factors that contribute to corn and food prices. Further, the farm share of the retail food dollar is relatively small. Increases in other marketing bill component prices are contributing to food price increases.”

Renewable Fuels Association news release

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