WBIA BLOG

Big Oil’s misinformation

The long stated myth that ethanol is to blame for higher food prices has been most recently debunked by new data from the Food and Agriculture Organization of the United Nations’ international food price index.

According to the FAO, in the past year, domestic grain prices have gone down about 9 percent, but meat prices are over 20 percent higher – all of this in a time when national ethanol production has risen slightly in the US.

Big Oil is spending millions of dollars trying to con American consumers into believing that ethanol production raises the price of their food. They are basing their campaigns on lies and misinformation in an effort to limit consumer choices at the pump.

Domestic prices for corn and other grains are dropping quickly while meat prices for consumers are up 11.6 percent in the same time period. Clearly, grain pricing has little to do with what consumers end up paying as food prices in most of the US are up 2.5 percent compared to last year while farmers are struggling to make a profit.

“Corn prices are below the cost of production for most farmers, and ethanol is selling approximately $1 per gallon less than the gasoline on the wholesale marketplace,” said Tom Buis, CEO of Growth Energy. “The unrelenting deception coming from these trade associations to continue to perpetuate this lie to mask their growing profits at the expense of the American consumer is deplorable. Their greed and deception knows no boundaries. It’s time for Big Oil and its Big Food allies to begin telling the truth.”

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