Food processors smear ethanol while raking in record profits

In a recent editorial column by Larry Matlack, president of American Agriculture Movement, he said he has serious questions about the attack mounted by the Grocery Manufacturing Association 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," Matlack said. "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." Matlack suspects that this smear campaign is nothing more than 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." He said 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," Matlack said.

Matlack said it's 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," he said. "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." Matlack said that for every dollar spent on this "smear campaign of misinformation" the 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," Matlack said. "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, Matlack said former National Security Advisor, has stated "we are funding our enemy." Matlack points to Article III Section 3 of the United States Constitution that lists three treasonous acts, of which one is providing aid and comfort to the enemy. "I believe providing money is Œaid and comfort'," he said. "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." Bob Dinneen, CEO of the Renewable Fuels Association, said that as oil and gas prices continue to set new record highs every day, "it is beyond disingenuous for these groups to ignore the enormous impact escalating prices for oil and gasoline have on the price of food." "Rather than work with biofuel producers to develop alternatives to oil to lower the price at the pump and thereby reduce the price of food, these groups prefer to manufacture fear and hysteria about food prices." he said.

"This is a contrived and thoroughly misleading PR campaign attempting to link biofuels and food prices. These groups have chosen to deliberately mask the devastating impact of skyrocketing oil, gasoline and diesel prices while fostering a climate conducive to rampant speculation that has driven all commodities higher. Everyone ought to be asking why?" Dinneen said that calling for the removal of ethanol from the marketplace would do precious little to reduce the price of food, but would send prices at the pump even higher by more than $1 per gallon.

"Ultimately, this deliberate smear campaign is aimed at destroying the base upon which the next generation of biofuels will be built," he said.

Dinneen said that if this country were to jettison the starch-based ethanol industry, the development of cellulosic ethanol technologies and other biofuel advancements would be set back by decades, "something those in OPEC and the oil industry would clearly welcome." "It is extremely curious at a time when companies are laying off employees and cutting back on production due to the high price of oil, gasoline, and diesel fuel, the nation's largest food companies are spending millions of dollars to attack ethanol and completely ignoring prices at the pump," Dinneen said.