August 4, 2008

Soybean Association explores food costs

The American Soybean Association has put together a nice informational resource for those looking for more information on what is behind higher food prices.

ASA said it is important for people o understand the global facors behind the present situation and that, all things considered, the demand for biofuels has played a relatively small role in rising food prices.

Instead, the group notes:

Higher energy prices have greatly added to the costs of transporting, processing, manufacturing, storing and distributing the food we eat. Higher energy prices also have dramatically increased the prices U.S. farmers are paying for the inputs they need to plant, grow and harvest their crops. Compared to just two years ago, farmers today are paying twice as much for the diesel fuel they need to run their tractors, combines and grain trucks. Fertilizer, which requires a great deal of energy to produce, has quadrupled in price.

They also note that biofuels like ethanol and biodiesel are making a contribution to the world’s fuel supply, which is holding gasoline and diesel prices lower at the pump for consumers.

Click here to review the report.

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