North Dakota Corn Growers Association blames inflation, not ethanol, for food price hikes

The Minot (N.D.) News reports remarks by the executive director of the North Dakota Corn Growers Association and Utilization Council blaming inflation, not corn, for the recent rise in food prices. “We don’t know where this food (cost comparison) effort is coming from,” Lilja told the News. “Essentially, food prices have risen with inflation. It disproves the anti-ethanol campaign. It’s an insignificant price increase.”
Although food prices have risen 5.5% across the board this year, corn prices have increased more than 50% since August 2006. Most American families purchase corn that has been refined into other products or indirectly through the purchase of corn-fed meat and dairy products, and much of the price increase represents the rising costs of fossil fuels which factor into transportation fuel as well as the cost of plastic packaging. Corn-related product price rises have been an observable phenomenon, although the director is right to point out that fossil fuel related factors have had impact on a broad range of foods.

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