Food and Fuel America.com Weekly Summary - May 31, 2008

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May 31, 2008, 8:45:53 AM5/31/08
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Weekly Summary - May 31, 2008
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Good and Balanced Food and Fuel News!

Saturday, May 31, 2008
Campbell Soup is Hmm Hmm Wrong!

Campbell Soup's CEO Doug Conant spoke with the Wall Street Journal and
shared his management secrets for "leading a transformation" in an
article that appeared this week.

5 Tips From Douglas Conant on Leading a Transformation

* Bring an "all things are possible" attitude to the work.
* Confront the brutal facts and be clear-eyed about the situation.
* Set high standards and make expectations clear, as the ability
to mobilize people is the key to success.
* Give the organization time to do things right.
* Do what you say you will; this is about performance, not
intentions.


We suggest that he adds "telling the truth" to his list.

In the article, Conant claims that the recently-enacted Renewable
Fuels Standard (RFS) is to blame for higher wheat prices because less
wheat is grown in favor of corn:

WSJ: Does Campbell have a position on the food-for-fuel issue and
the government mandate on how much corn should be used to make
ethanol?

Mr. Conant: The world has changed since the ethanol incentives
were put in place and what we're saying is, it has to be re-examined
because it had unintended consequences. The people that enacted it
didn't realize the impact it was going to have -- that by planting
more corn you'd be planting less wheat and that the price of that
wheat was going to go up so much because the demand for wheat globally
is so high.

Campbell Soup, a leader in the Grocery Manufacturers Association,
failed to mention that according to the USDA wheat acres were up in
2007 and also are projected to be up again this year. These facts can
easily be checked on the USDA website.

Wheat All

Year


Planted All Purposes


Harvested


Yield


Production


Price per Unit


Value of production
2007 60,433 1 51,011 1 40.5 2 2,066,722 3

2006 57,344 1 46,810 1 38.7 2 1,812,036 3 4.25 4 7,721,028 5

1 - thousand acres 2 - bushel 3 - thousand bushels 4 - dols / bu 5 -
thousand dollars

The GMA claims to have "the facts on their side" in their smear
campaign against ethanol. But GMA and Campbell Soup apparently don't
need the "facts". They just make them up. And the WSJ just mindlessly
prints the mis-truths.

Campbell Soup...Hmm Hmm Wrong!

Source: WSJ, USDA

READ MORE

* Ethanol is Not Major Factor in Food Cost Increases
* New Texas A&M Study Shows Higher Oil Prices are Impacting
Consumer Prices
* Tell Big Food to Stop Blaming Ethanol
* Food vs. Fuel Is Rhetoric
* Sen. Grassley Responds to Ethanol Smear Campaign
* Biofuel Myths vs Facts

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Posted by Editor at 5:55 AM 0 comment

Categories: Big Food, Food Costs
Friday, May 30, 2008
Texas Senator Blames Corn Ethanol

Texas Senator Kay Bailey Hutchison wants you to know who to blame for
higher food prices: the American farmer.

Announcing Senate bill S. 3031, the senator and other anti-ethanol
lobbyists blame all food cost increases on the price of corn:

“The ethanol mandate is clearly causing unintended consequences on
food prices for American consumers,” said Sen. Hutchison. “Freezing
the mandate is in the best interests of consumers, who cannot afford
the increasing prices at the grocery store due to the mandate
diverting corn from food to fuel.”

Really? Perhaps she hasn't read the report from Texas A&M which looked
at this very issue:

"Relaxing the RFS does not result in significantly lower corn
prices."

Because if she did, she might also learn that higher energy costs are
the true culprit:

"The underlying force driving changes in the agricultural
industry, along with the economy as a whole, is overall higher energy
costs, evidenced by $100 per barrel oil."

Since the report was written just a month ago, oil prices have risen
another $35 a barrel. And they are expected to increase even more.

These misguided efforts to decrease the fuel supply, increase our
dependence on foreign oil and shift blame to American agriculture are
unproductive. America needs to look at all efforts to get off oil.

The oil industry knows that crippling corn ethanol now will stop
biofuel development. So expect to hear even more rhetoric from them
and their supporters in the coming weeks.

Source: Senator Kay Bailey Hutchison, THOMAS

READ MORE

* Texas Shoots at Ethanol
* Ethanol is Not Major Factor in Food Cost Increases
* Biofuel Myths vs Facts
* Food vs. Fuel is Rhetoric
* Economist Explains High Food Costs Caused by Energy Costs

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Posted by Editor at 1:34 AM 0 comments

Categories: Big Oil, Food Costs
Dastardly Treason?

The firestorm set off by the disclosure of a well-funded campaign to
smear ethanol isn't going over well with many in the nation's
heartland.

The extent to which the Big Food industry is going to discredit
American farmers, the biofuels industry and the rest of the
agriculture is really quite staggering.

But even we chuckled a bit when we saw this press release come by our
desks.

Extra double points for using "Dastardly" and "Treasonous" in the same
press release!

An Editorial Comment by
Larry Matlack, President
American Agriculture Movement

May 27, 2008

It recently became public that there has been an orchestrated
public relations smear campaign by Grocery Manufacturing Association
(GMA), working in tandem with a highly-paid “K Street” lobbying firm,
to discredit ethanol as a viable alternative renewable fuel. The smear
campaign attempted to blame it for high food prices and causing people
to go hungry. To put the issue in context, we must first remember that
our renewable fuels programs have been initiated to help reduce our
nation’s dependence on foreign oil.

I also have serious questions as to whether this smear campaign
was also a diversionary tactic to misdirect the attention onto farmers
and renewable fuels and away from the fact that many food processors
are making and reporting record profits. Several members of GMA have
reported increased profits of well over 50 percent in the past quarter
when compared to previous quarters and/or the same quarter a year ago.
Some of those reported increases in corporate profits exceed 80
percent at a time America’s working families are struggling with rapid
and debilitating inflationary surges in energy, food and related
living expenses.

It is nothing new for one business group to spread misinformation
about another in order to increase their profits. It is also nothing
new for one group to try to influence congressional legislation or
governmental regulations in order to profit from that influence. What
is very different in this case is the possible consequences of these
most recent acts by some state leaders, members of congress and
business members of the GMA.

For every dollar spent on this smear campaign of misinformation
our nation slips further from domestically produced renewable fuels
and back to our over reliance on imported oil. This dastardly campaign
not only lines the pockets of the food processing executives, it
actually sends more money to countries that do not share America’s
values. Some of that money goes to the countries the 9/11 hijackers
came from. Some of that money goes to countries from which support is
provided for insurgents and terrorists fighting and killing American
solders in Iraq and Afghanistan.

Referring to our dependence and continued purchase of oil from
countries hostile to America, R. James Woolsey, former National
Security Advisor, has stated “we are funding our enemy.”

Article III Section 3 of the United States Constitution lists
three treasonous acts, of which one is providing aid and comfort to
the enemy. I believe providing money is “aid and comfort”. I believe
Benedict Arnold caused fewer American solders to die than will those
attacking renewable, domestic fuels. I would welcome an explanation
from any of the Presidential Candidates or any credible news media
personality why this is not a treasonous act. The real Patriots I know
prefer to advance and promote Midwestern ethanol and biodiesel, not
Middle Eastern oil!

Source: AAM


READ MORE

* Former CIA Director Warns Foreign Oil is a Threat
* Ethanol is Not Major Factor in Food Cost Increases
* Big Food's Big Food Fight Finally Featured
* Sen. Grassley Responds to Ethanol Smear Campaign

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Posted by Editor at 12:14 AM 0 comment

Categories: Food Costs
Wednesday, May 28, 2008
Ethanol is Not Major Factor in Food Cost Increases

While food prices in the U.S. rose in 2007 and early 2008, another new
study shows that ethanol is not the major cause.

Richard K. Perrin, the Jim Roberts Professor of Agricultural Economics
at the University of Nebraska, recently studied the effects of food
prices caused by demand for corn for ethanol.

"The popular press has tended to attribute these food price
increases to demand for corn by the ethanol industry. Grain prices are
one determinant of food prices, but they constitute less than 5% of
food costs in the U.S. (a higher percentage elsewhere.)"

The study finds that ethanol is responsible for no more than 30-40% of
the grain price increases of the last 18 months.

Food prices in the US increased about 16% over the last five years,7%
over the past 18 months, but rising grain prices have contributed only
about a 3% cost increase over these periods.

It is reasonable to conclude that ethanol is responsible for increases
in US food prices about 1% in the last two years – a relatively small
proportion of actual of U.S. food price increases.

Despite the propaganda generated by biofuels critics, the facts back
up that ethanol is not the culprit.

Source: Ethanol and Food Prices, Richard K. Perrin, University of
Nebraska

READ MORE

* New Texas A&M Study Shows Higher Oil Prices are Impacting
Consumer Prices
* Quotes of Note
* Senator Grassley Responds to Ethanol Smear Campaign
* Big Food's Big Food Fight Finally Featured
* USDA Responds to Food and Fuel Critics
* New Report Shows Ethanol Reduces Gas Prices

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Posted by Editor at 2:50 AM 0 comments

Categories: Food Costs
Tuesday, May 27, 2008
As Gas Prices Soar, Americans Driving Less

High gas prices are changing driving habits.

American drove less miles in March 2008 according to estimates
released from the Federal Highway Administration.

The FHWA’s “Traffic Volume Trends” report, produced monthly since
1942, shows that estimated vehicle miles traveled (VMT) on all U.S.
public roads for March 2008 fell 4.3 percent as compared with March
2007 travel.

This is the first time estimated March travel on public roads fell
since 1979. At 11 billion miles less in March 2008 than in the
previous March, this is the sharpest yearly drop for any month in FHWA
history.

Though February 2008 showed a modest 1 billion mile increase over
February 2007, cumulative VMT has fallen by 17.3 billion miles since
November 2006. Total VMT in the United States for 2006, the most
recent year for which such data are available, topped 3 trillion
miles.

Fueling this change was the average price of gasoline which jumped
nearly 15 cents this week to $3.937 per gallon. This is up nearly 73
cents a gallon from a year ago at this same time.

Diesel prices also climbed higher, rising nearly 23 cents to $4.723 a
gallon. This is up $1.906 a gallon from a year ago at this same time.

Despite driving less miles, many expect prices to remain high as crude
oil prices continue to climb higher.

Source: US Department of Transportation, US Department of Energy

READ MORE

* Getting the Most Out of $4.00 Gas
* Quotes of Note
* USDA Responds to Food and Fuel Critics
* Food Price Problem: Outrageous Oil
* Biofuel Myths vs Facts
* Higher Fuel Costs Go Postal
* New Report Shows Ethanol Reduces Gas Prices

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Posted by Editor at 4:16 PM 0 comment

Categories: Energy
Buying American Buys Freedom

Many Americans, shocked by the ever increasing price of foreign oil
and the high level of foreign imports to the country, have begun to
seek out and buy only American-made products.

Some call this "pocketbook patriotism". Others think it's just a good
idea to keep jobs here at home and help the local and national
economies. Many are still concerned with tainted imported food
products, medicines and toys that have entered the country in recent
years. While others don't seem to care at all.

But the reality is that foreign oil fueled a $711.6 billion trade
deficit in 2007 according to the Commerce Department.

It's not easy buying Red, White and Blue. So if you want to buy
American, where do you start?

One new website provides consumers with the information they need when
looking to buy US-made products:

Still Made in the USA
www.stillmadeinusa.com

As the price of foreign oil continues to climb to record levels,
American wealth is transferring to oil-producing countries around the
world. Our national security is at risk with every dollar that leaves
our shores to hostile countries. And most developing nations are
seeing their food money leave the country to pay the higher price for
oil.

American-made biofuels offer motorists an American-made choice for
their fuel too. Check out our lists of where you can buy biofuels in
the US.

READ MORE

* Energy Victory Through Competition
* Consumers Face Soaring Gas Prices
* Oil Imports Fuel Trade Deficit
* US Spy Chief Warns of Oil Threat from Russia, China and OPEC
* Oil Prices Expected to Ripple Through Economy
* Biofuel Myths vs Facts
* Find Alternative Fuel Locations

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Good and Balanced Food and Fuel News!

Posted by Editor at 12:37 AM 0 comment

Categories: Interesting
Monday, May 26, 2008
Tell Big Food to Stop Blaming Ethanol

As first reported by RollCall, the Grocery Manufacturers Association
(GMA) has funded a major campaign against corn ethanol and U.S.
farmers.

Blaming food cost increases solely on ethanol, GMA has aligned itself
with other anti-farmer and ethanol-foes such as the the Earth Policy
Institute and the Environmental Working Group to beat back the efforts
of American farmers to produce both food AND fuel.

All the while, they are raising prices and discounting the tremendous
impact rising energy costs, worldwide supply and demand and weather
have played in food cost increases. Their smear campaign makes it
clear that they will only blame ethanol:

"Corn-based ethanol is directly responsible for major increases in
the costs of not just corn products, but virtually all major food
staples." - Glover Park Group, Campaign Report to GMA, March 6, 2008
(PDF, Page 5 of 21).

Senator Chuck Grassley last week called upon Iowans who work for GMA
companies to voice their opinions against the campaign launched by
their employers.

Now the National Corn Growers Association is asking its members and
supporters to call or e-mail these leading companies of the GMA and
make their voices heard too.

Kraft Foods (847) 646-2000
Kraft...@kraft.com

General Mills (800) 248-7310
Kris....@genmills.com

Lakeside Foods (920) 684-3356
jdq...@lakesidefoods.com

NCGA also has a sample e-mail letter that can be sent online available
HERE. More information regarding the GMA campaign is available HERE
Source: National Corn Growers Association

READ MORE

* Senator Grassley Responds to Ethanol Smear Campaign
* Big Food's Big Food Fight Finally Featured
* USDA Responds to Food and Fuel Critics
* Iowans Urged to Voice Opinions on Smear Campaign Against Ethanol

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Good and Balanced Food and Fuel News!

Posted by Editor at 12:13 AM 0 comment

Categories: Food Costs
Sunday, May 25, 2008
Beer Fuels Democrats

Democrats will drive with ethanol fuel made from beer at their
national convention in Denver this summer.

The Denver 2008 Convention Host Committee announced last week that
Molson Coors Brewing Company will be the Official E85 Ethanol Producer
for the 2008 Democratic National Convention.

Molson Coors is donating all the clean-burning ethanol fuel for the
fleet of General Motors flex-fuel vehicles to be used for Convention
transportation needs.

"From fueling a national conversation about sustainability to
fueling convention vehicles, we're working toward a green convention
on every front," said Denver Mayor John Hickenlooper. "We are grateful
for Molson Coors' donation of cleaner-burning fuel to ensure we host
the greenest national political convention to date."

Coors is the nation's first major brewer to convert its waste beer
into ethanol. The company began recycling waste beer - beer lost
during packaging or deemed below quality standards - and converting it
to ethanol in 1996. Today the Golden ethanol facility produces about
three million gallons of ethanol per year.

Source: Denver 2008 Convention Host Committee

READ MORE

* Ethanol from Beer
* There's Barley Truth to the Story
* Why Beer Prices are Higher
* Gasoline Prices Rise and So Does Everything Else

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Posted by Editor at 12:18 AM 0 comment

Categories: e85, Ethanol, POTUS08
***Food and Fuel Quiz, 5-25-08***
food vs fuel debateFood and Fuel in The News
Weekly Trivia Quiz, May 25, 2008

How good are you at Food and Fuel trivia for the week? Try our new
weekly trivia quiz. Answers and scoring below the questions. Post your
scores in the comments. Good luck!

1. Name at least 3 ways you can drive your vehicle more efficiently to
save gas.

2. USDA Secretary Ed Schafer spoke about efforts to repeal the RFS.
Did he say a change in the renewable fuel standard, WOULD or WOULD NOT
affect food prices?

3. Senator Grassley is urging employees of the Grocery Manufacturers
Association to do what?

4. Was the average price of gasoline HIGHER or LOWER than $3.78 a
gallon this week?

5. The average price of gasoline is up 57 cents a gallon from last
year. About how many Subway footlong sandwiches would that buy for
someone who buys 20 gallons of gas a week during a year?

6. During grilling by Congress, Oil executives were unable to explain
what according to Sen. Patrick Leahy? a) why gas prices are so high b)
they justify special tax breals and subsidies c) "a disconnect"
between normal supply and demand and skyrocketing prices.

7. The Dairy Farmers of America co-op faces federal investigation for
what two things?

8. Raising consumer prices was good for Hormel. How much did their
profits rise this past quarter?

9. Oprah has a new diet. Again. Name three things she is going to give
up for 21 days.

10. The Kansas City Star blames ethanol for raising popcorn prices by
25 cents and ticket prices by $1.00. If field corn was popcorn at
$5.00 a bushel, would the total price of a pound of corn be more or
less than the 25 cent increase?


BONUS QUESTION: (also worth 10 points)

B1. According to the beef checkoff, how many pounds of corn is
required for 1 pound of beef?

SCORE

Earn 10 points for each correct answer.

100 points : Food and Fuel Champ
80-90 points : Great! Keep it up.
60-70 points : Good, but you can do better.
10 - 50 points : Need to visit the site more often
0 points : Are you working for Big Oil?

ANSWERS

1. Stay within posted speed limits. Stop aggressive driving. Avoid
unnecessary idling. Combine errands. Use overdrive gears and cruise
control when appropriate. Remove excess weight from the trunk. Avoid
packing items on top of your car.
2. Would Not
3. To protest the Grocery Manufacturers Associations' target and
tactics against ethanol.
4. Higher, $3.791 a gallon
5. 120 (.57 x 20 x 52)
6. c) "a disconnect" between normal supply and demand and skyrocketing
prices
7. Alledged price fixing and a money transfer.
8. 14%
9. Caffeine, Sugar, Alcohol, Gluten, Animal products
10. Less. Far less. Field corn contains 56 pounds per bushel. At $5.00
a bushell, a pound of corn would cost less than 9 cents. A theatre tub
of popcorn would certainly use less than even one pound of kernels.
And field corn is not popcorn.

BONUS
B1. 2.6 pounds of corn. At $5.00 per bushell, that's about 23 cents
per pound ($5. / 56 x 2.6)

READ MORE

* Previous Quizes
* Biofuel Myths vs Facts
* Big Oil's War on Ethanol
* Find Alternative Fuel Locations

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Posted by Editor at 12:06 AM 0 comments

Categories: Quiz




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