'Kernals of Truth' Campaign: Ethanol Not Raising Food Prices

By DIRK LAMMERS Associated Press Writer
© 2007 The Associated Press

SIOUX FALLS, S.D. — The South Dakota Corn Utilization Council is embarking on a public relations campaign to defend corn and its role as an alternative fuel source.

Lisa Richardson, executive director of the South Dakota Corn Utilization Council, said there's no question that food prices have gone up in recent years, but corn's growing use as an ethanol feedstock is taking a disproportionate share of the blame.

The ongoing food-versus-fuel debate has prompted the council to launch its "Kernals of Truth" campaign, which says that food inputs such as grains and oilseeds account for about 19 cents of every dollar spent at the grocery store. Energy, labor, transportation, packaging and other factors accounting for the other 81 cents, Richardson said.

The Associated Press, Oct 10, 2007

"We'll take credit for our piece of it, but a lot of people are blaming us for all of it, and that's really unfair," she said.

The corn council's campaign estimates that with corn prices at around $4 a bushel, corn accounts for about 6 cents of the cost of a liter of pop, 18.6 cents per pound of beef and 2.2 cents of each box of corn flakes.

Richardson said $80-a-barrel oil is more responsible for higher food costs than ethanol.

Those sentiments were echoed last week by Chuck Conner, the acting head of the U.S. Agriculture Department.