Iowa Senator Charles Grassley sent a letter October 28 to the interim president and CEO of the Grocery Manufacturers Association (GMA) - asking Mr. Molpus when he could expect GMA's member companies to "reduce food prices commensurate with lower input costs."
Grassley reminded the head of the Grocery Gang that GMA and its segregates blamed high corn prices for higher food prices for much of this year, yet now that corn prices are half what they were then, food prices have remained high. Click here for a FoodPriceTruth blog post that links to the letter.
Grassley said GMA did "everything it could" to make ethanol a scapegoat for the rise in commodity and food prices. "Subsequent events clearly prove that ethanol was not the primary driver of those corn prices," he wrote.
He also called out one of GMA's spokesmen, who has recently been quoted in a couple of papers continuing his ill-conceived mantra.
Grassley told DTN's Chris Clayton that an apology from GMA - or lower food prices - would be nice.
On Wednesday, almost on cue and providing Grassley with more ammunition, Kraft Foods reported that it's third-quarter net income of $1.4 billion was more than double last year's income - thanks to price increases and cost cuts.
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