A coalition of food and retail industry groups including the American Beverage Association, Grocery Manufacturers Association, International Foodservice Distributors Association (IFDA), National Council of Chain Restaurants, National Restaurant Association, National Retail Federation and the Snack Food Association have joined together to send a letter to the U.S. Environmental Protection Agency (EPA) urging it to revise the food-to-fuel mandates included in the Energy Independence and Security Act of 2007.
According to the correspondence: "Although there are many factors contributing to the sharp increase in US and global food prices - including increasing global food demand, export restrictions, adverse weather and higher energy prices - a significant new factor, and the only factor affecting food and feed prices that is under the control of the Administration, is the federal food-to-fuel mandate diverting food into fuel production. We urge the Administrator to freeze federal food-to-fuel mandates for 2008 and 2009 at the US production level for 2007."
Demand for corn ethanol and biodiesel has led to a dramatic increase in commodities including soybeans and wheat and the effect can be felt throughout the food chain. Food prices in the U.S. rose nearly five percent in 2007 and studies predict that food price inflation will grow nine percent annually between 2008 and 2012, according to the letter.
Freezing the food-to-fuel mandate would lead to immediate reductions in the price of corn. The groups cited a recent study by FAPRI, which estimated that corn prices have risen 19 percent due to the mandate. Freezing the program at 2007 levels would help to moderate prices and end the upward spiral of food and fuel prices.
While moving away from food stocks to produce bio-fuels, the groups are asking the government "to accelerate the development of bio-fuels that do not pit our energy needs against the needs of the hungry or the environment. In particular, Congress should accelerate the development of cellulosic and advanced bio-fuels derived from fuel feedstocks that do not increase food or fiber prices, hold significantly greater promise to displace traditional sources of gasoline, and improve the environment."
Discussion Questions: Is it time for the government to change the food-to-fuel mandates in the Energy Independence and Security Act of 2007? Are there other bio-fuel alternatives that the government and industry could be exploring that would not create a choice between using crops for either food or fuel?
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