Restaurants Fatten Profits While Denying Energy Costs Supersize Food Costs

June 20, 2013

Restaurants Fatten Profits While Denying Energy Costs Supersize Food Costs

(June 20, 2013) Washington, D.C. – There they go again. The National Council of Chain Restaurants (NCCR) is rolling out yet another campaign of scare tactics and half-truths about the Renewable Fuels Standard (RFS). Big Oil and Big Food, including fast food restaurants, are desperate to protect their profits at the expense of American consumers.

Commenting on NCCR’s attack on the RFS, Bob Dinneen, President and CEO of the Renewable Fuels Association, said, “Seriously, the chain restaurants should put a sign up saying ‘1 Billion Half-Truths Served’. It is a well-documented fact that there is a near perfect correlation between food prices and energy costs. The World Bank recently concluded that almost two-thirds of the post-2004 food price increase is attributable to the price of oil. Conversely, when corn is seven dollars a bushel, there is only eight cents worth of corn in a box of corn flakes. However, that same box of cereal has to be processed, packaged, and shipped which requires oil - expensive oil. The average trip from farm to grocer, or perhaps a drive-thru, is 1,500 miles.”

“Here’s a hot, heaping serving of the truth: Chain Restaurants, livestock producers, and grocery manufacturers are trying to protect cheap, government subsidized corn which allows them to keep more profit in their pockets. They should instead be praising the RFS which has helped lower gas prices by $1.09 a gallon in 2011 thus allowing more Americans the disposable income to eat out regularly and cruise through drive-thru windows when hungry. “

Please see RFA Infographic: “Ethanol Feeds and Fuels the World”

Facts worth noting:

• Ethanol is not produced from the sweet corn that humans consume. It is made from field corn, which is used for livestock feed and industrial purposes.

• One-third of every bushel of grain used in the ethanol process is returned to the market as nutrient-dense livestock and poultry feed.

• Less than 3% of the global grain supply was used by the U.S. ethanol industry in 2012.

• 34.4 million metric tons of animal feed were produced by ethanol plants in 2012.

• 7 hamburgers per person worldwide could have been produced from the ethanol industry’s 2012 animal feed output. That is 50 billion hamburgers.

• Only 16 cents of every dollar spent on food is related to agricultural ingredients. The remaining 84 cents goes to energy, packaging, food processing and other costs.

• Oil prices have virtually doubled since 2005 – the year the RFS was adopted – putting pressure on all raw commodities and consumer goods and services. Still, while oil prices have climbed an average of 10% per year since 2005, retail food prices have increased an average of just 2.9%.

• There is a near perfect correlation between U.N. food price index & World Crude Oil prices, highlighting the fact that energy costs drive food prices.

 

 

(June 20, 2013)  Washington, D.C. –   There they go again.  The National Council of Chain Restaurants (NCCR) is rolling out yet another campaign of scare tactics and half-truths about the Renewable Fuels Standard (RFS).  Big Oil and Big Food, including fast food restaurants, are desperate to protect their profits at the expense of American consumers. 

Commenting on NCCR’s attack on the RFS, Bob Dinneen, President and CEO of the Renewable Fuels Association, said, “Seriously, the chain restaurants should put a sign up saying ‘1 Billion Half-Truths Served’.  It is a well-documented fact that there is a near perfect correlation between food prices and energy costs. The World Bank recently concluded that almost two-thirds of the post-2004 food price increase is attributable to the price of oil.  Conversely, when corn is seven dollars a bushel, there is only eight cents worth of corn in a box of corn flakes.  However, that same box of cereal has to be processed, packaged, and shipped which requires oil - expensive oil.  The average trip from farm to grocer, or perhaps a drive-thru, is 1,500 miles.”

“Here’s a hot, heaping serving of the truth:  Chain Restaurants, livestock producers, and grocery manufacturers are trying to protect cheap, government subsidized corn which allows them to keep more profit in their pockets.  They should instead be praising the RFS which has helped lower gas prices by $1.09 a gallon in 2011 thus allowing more Americans the disposable income to eat out regularly and cruise through drive-thru windows when hungry. “

Please see RFA Infographic: “Ethanol Feeds and Fuels the World” (HYPERLINK)

Facts worth noting:

·         Ethanol is not produced from the sweet corn that humans consume. It is made from field corn, which is used for livestock feed and industrial purposes.

 

·         One-third of every bushel of grain used in the ethanol process is returned to the market as nutrient-dense livestock and poultry feed.

·         Less than 3% of the global grain supply was used by the U.S. ethanol industry in 2012.

 

·         34.4 million metric tons of animal feed were produced by ethanol plants in 2012.

 

·         7 hamburgers per person worldwide could have been produced from the ethanol industry’s 2012 animal feed output. That is 50 billion hamburgers.

 

·          Only 16 cents of every dollar spent on food is related to agricultural ingredients. The remaining 84 cents goes to energy, packaging, food processing and other costs.

 

·         Oil prices have virtually doubled since 2005 – the year the RFS was adopted – putting pressure on all raw commodities and consumer goods and services.  Still, while oil prices have climbed an average of 10% per year since 2005, retail food prices have increased an average of just 2.9%.

 

There is a near perfect correlation between U.N. food price index & World Crude Oil prices, highlighting the fact that energy costs drive food prices.