Monday, October 1, 2007

"Kernels of Truth" Spreads Truth About Food Costs

A new effort helps answer the question "Is the price of corn the cause for higher food costs?"

The answer appears to be "No".

The new effort by the South Dakota Corn Utilization Council dispels the myths surrounding the "food vs fuel" debate and intends to reach consumers, retailers, and media about the positive effect corn has on the economy.

The Kernels of Truth initiative presents the facts concerning the role corn plays in food and fuel prices. Examples show that corn costs represents only a small fraction of the final retail price of food:
  • 6 cents of corn in a gallon of milk
  • 19 cents of corn in a steak
  • 26 cents in a pork chop
  • 6 cents of corn sweetener in a liter of soda
  • 4 cents of corn in a box of corn flakes
  • Cereal, snack products and beverages use less than 3% of the US corn supply
  • Ethanol production reduced gasoline prices by 45 cents per gallon
  • Without ethanol, food prices would go up
As we've shown here on Food and Fuel, higher energy, marketing and labor costs are the biggest drivers in increased food costs and consumer goods.

The American Petroleum Institute (API), often critical of efforts to promote renewable fuels, apparently now agrees that the high price of oil is the chief cause. In this media quote from the Argus Leader, their chief economists appears to confirm it:
Rayola Dougher, senior economic analyst for API, echoes Martin that corn is no longer the culprit. "This year, it's $80-a-barrel crude oil. That's what's moving the market today."

More information on the "Kernels of Truth" corn food facts can be found HERE.

Source: South Dakota Corn Utilization Council

READ MORE AddThis Social Bookmark Button

Food and Fuel

Good and Balanced Food and Fuel News!

No comments: