WASHINGTON, DC – Growth Energy, the leading voice for U.S. ethanol supporters, released the following statement in response a “Growing a Better Future” report from Oxfam that calls for nations to take steps to stabilize food prices, which the organization claims could double within 20 years.
“Oxfam is partly correct in identifying the role that high oil prices and international trade have on the price of corn, and we join them in urging nations to curtail excessive commodity speculation. When China can send the price of grain up by 10 percent in one day with a single purchase, then there is no denying the role that global trade and speculators have on commodity costs,” said Growth Energy President Jim Nussle.
“But Oxfam is wrong to propose ending the Renewable Fuel Standard or the biofuels tax credit, as these are the most effective policies we have to displace oil – a primary driver of rising grocery prices. It is unfair and erroneous to single out ethanol for high food prices, especially because the U.S. ethanol industry uses just three percent of the global grain supply on a net basis.”
Take a look at Growth Energy’s two page Food vs. Fuel Fallacies report which outlines the real reasons why grocery prices are on the rise today.