The Real Tie Between Food, Fuel Prices

By Mike Bryan | November 03, 2008
An interesting phenomenon has occurred. While U.S. ethanol production continues to rise, the price of corn and other commodities followed oil's downward trend in the wake of Wall Street's marked October setback. Meanwhile, food prices haven't budged.

This is more proof that the allegation about corn-based ethanol driving up the price of food has been nothing more than a hoax of gigantic proportion promoted by the Grocery Manufacturers Association.

It's all been a farce, a marketing strategy of criminal proportion that has allowed the greed of the GMA to encourage grocers across the country to raise consumer prices and blame fuel-grade ethanol. Farmers have always been somewhat trapped between rising fuel/fertilizer costs and the greedy grocers who spend millions on packaging, marketing and transportation and then blame commodity prices. This has been one of the few times in American history that the farmers have actually been able to make a decent return on their investment, and the GMA has portrayed them as villains

While grocery prices remain high, we have ships loaded with grain for export backed up in harbors because many of the importing countries don't have the ability to pay. We have always had more than enough grain. This year's corn crop will be the second-largest in history. Countries around the world are anxious to produce corn and other crops, but need to have high-enough market prices to be able to effectively do so. They have the land, labor and technology, but the market price is too low.

The grocery industry was able to convince Congress and others that higher commodity prices were starving people and causing human catastrophes of epidemic proportion. The true fact is that those high commodity prices were the only global bright spot for agriculture. It's an opportunity lost for countries around the world to improve their self-sufficiency by cultivating millions of acres of arable land that now lies fallow because of low prices.

Perhaps a good slogan for the GMA would be, "Why do you need farmers when you have all these grocery stores?"

That's the way I see it!

Mike Bryan
Publisher & CEO
mbryan@bbibiofuels.com