POLITICS

Chain Restaurants: Ethanol mandates driving up cost of food

By |
Politics,Beltway Confidential,Charlie Spiering

National Council of Chain Restaurants is protesting the EPA’s ethanol mandate, warning that it is directly affecting the higher cost of food.

According to the New York Times, nearly half of the nation’s corn crop is now being used for ethanol, in spite of a devastating drought that hit the Midwest this summer.

Earlier this month the E.P.A. announced that they would not waive the corn based ethanol requirements even though the supply of corn had been affected by the drought.

The decision angered livestock producers who are suffering from high feed costs as the supply of corn is dwindling while corn producers are enjoying record prices.

According to a PricewaterhouseCoopers study commissioned for the National Council of Chain Restaurants, corn prices are expected to rise by 27 percent by the time the mandates 2015 goals are met.

“The chain-restaurant industry isn’t anti-ethanol,” wrote Director Rob Green in the Wall Street Journal this morning. “We simply believe it is time for the ethanol industry to stand on its own, as restaurant owners and operators do every day.”

View article comments Leave a comment