Food companies along with Livestock and Poultry groups have called for eliminating the renewable fuel standard because they say higher corn prices have caused food prices to rise. A new study released by the Renewable Fuels Association shows no relation between corn prices and food prices. RFA Senior Vice President Geoff Cooper says their study shows neither the demand for ethanol nor corn has impacted food prices.
Cooper says there are several reasons why there’s no relation between food and corn prices.
He says another factor brought out in their study is that the consumer price index shows virtually no correlation between monthly average corn prices and retail food price changes since 2007.
Cooper adds that the food versus fuel debate also doesn’t hold water because corn prices are now at a four year low, there’s a record corn crop in the fields coming in this harvest season and ending stocks are at their highest level in ten years.