Friday, August 7, 2009

GAO Report Shows Food Prices Increased Higher than Farm Prices

GAO Government Accounting Office Higher Food Prices
A new report by the Government Accountability Office (GAO) found that supermarket prices for food have climbed by 128 percent since 1982 – four times the increase in crop prices for farmers.

The new GAO report found that since 1982, farmers have generally received higher monthly prices for their commodities, but these prices have increased less than food prices and inflation in the broader economy.

So exactly how does ethanol lead to higher food prices?

It doesn't.

As we've long said here, consumer food prices are largely driven by costs after the farm costs---labor, energy, transportations, marketing AND profits.

And a Senate committee found earlier this summer that recent higher commodity costs were driven by speculators. Again, not by ethanol policy or farmers.

But the Grocery Manufacturers Association continues to stir up hatred for the renewable fuel.

Big Food companies like Kraft Foods continue to record record high profits.

All thanks to their higher food prices and "let's blame the farmers" strategy.

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