GoodFuels

Unhappy Reactions to EPA Decision

Within 30 minutes of the EPA announcement that the request for a waiver of the Renewable Fuels Standard had been denied, members of the Big Food coalition held a press conference to express their disappointment.

Representatives from the National Turkey Federation, American Meat Institute, National Chicken Council, Texas Cattle Feeders, American Bakers Association, and American Beverage Association recited a litany of woes that will now befall the country as a result of the decision, predicting that within 2-3 years we will face food shortages and be forced to increase imports to meet our needs.

Once they opened it up for questions, however, reporters seemed less than sympathetic. The first questioner was Matt Wald of the NY Times, who challenged them to explain why they were pushing for a waiver when it seemed evident that demand for ethanol was driving production more than the RFS. This appeared to catch the food group totally off guard, so much so that Scott Faber of the Grocery Manufacturers Association had to jump in from the sidelines to try and cover for them. To really appreciate this, you have to listen to the entire eight minute exchange, complete with pauses, stumbling and mumbling.

Another great question came from Lynn Henderson of Agrimarketing Magazine, who asked “In light of these higher grain prices, why is it that many of the major food companies are reporting record profits?”

Faber answered that the food manufacturers were “finding ways to reduce costs” and are doing “extraordinary things to avoid passing the costs” on to consumers. Riiight - that’s it.

One more thing that I found interesting about the press conference was the opening statement from the American Bakers Association representative, who commented that Kansas now produces more corn per acre than it does wheat. When I checked that out, I discovered he was right. Kansas does produce more corn PER PLANTED ACRE than wheat. Last year, Kansas harvested 518 million bushels of corn from 3.7 million acres of corn - but less than 284 million bushels of wheat from 8.6 million acres. With wheat yields at 33 bushels an acre compared to 140 bushels for corn - every acre of corn produces more bushels compared to an acre of wheat! Point being, that is the kind of misleading rhetoric this group uses to try and make people believe that corn for ethanol is causing the prices for all commodities to go up.

Fashionable to blame ethanol

It has “become fashionable to blame everything from high gas prices to high food prices on the production of ethanol,” says Fred Keeley, a former California State Assemblyman and current treasurer of Santa Cruz County.  “Those arguments, to be generous, are an exaggeration.”

We agree.  Fred lays out the pros and cons of ethanol in a refreshing style, concluding with “Ethanol is a good bridge on the road to a future free of fossil fuels.”  Additionally, “the fact is corn-based ethanol production has a very small impact on food prices.”

“The use of ethanol in the United States is energy efficient, cleaner for the environment, saves Americans money and reduces our dependence on consumption of foreign oil.”

Source: Capitol Weekly
Photo: Steve Laufer

Video: Voters Want More Ethanol

We reported last week that by a 2 to 1 margin, American voters support increasing the use of ethanol in our motor fuel supply, according to a poll released by two top polling firms; the poll shows that 59% of American voters want more ethanol.

The poll results have been resonating with the media since its release:

New York Times Features Cellulosic Ethanol

Nice feature today in the New York Times called, “Gassing up with Garbage” that calls attention to the great strides being made to bring second generation ethanol to reality.

The article begins with a refreshingly optimistic tone, “After years of false starts, a new industry selling motor fuel made from waste is getting a big push in the United States, with the first commercial sales possible within months.”

Prominently featured in the story is KL Process Design Group, with quotes from vice president Tom Slunecka, former executive director of the Ethanol Promotion and Information Council. A number of other companies are mentioned including Range Fuels, Verenium, Blue Fire, and Iogen.

All in all, a pretty impressive piece of reporting and positive to boot.

Great Debate

E&E TV featured a great debate on Tuesday that allowed the ethanol industry the rare opportunity to go head-to-head with the Grocery Manufacturers Association and shoot holes in all their theories.

Panelists include (from left to right) Renewable Fuels Association president Bob Dinneen; Brent Erickson of the Biotechnology Industry Organization; Joel Velasco with the Brazilian Sugar Cane Industry Association; and Scott Faber of the Grocery Manufacturers Association. The panel was moderated by E&ETV host Monica Trauzzi.

Faber was all alone on this panel in his views that US ethanol policy is responsible for higher food prices. Velasco stressed the sustainability of sugarcane ethanol, Erickson led off by saying “We can’t afford for biofuels to fail” and drew parallels to the development of kerosene, the horseless carriage and cell phones, and Dinneen lived up to his nickname “Ethanol Promoter-in-Chief.”

This is some great stuff and fun to watch the other panelists beat up on Faber. Watch it here.