Food versus Biofuels

Sustainability

                           

            

Caught Between Substitutes

FoodEdible oils ($2.40/gal)

Meal

FuelPetroleum Diesel

($2.23/gal w/tax)

Biodiesel

($3.30/gal ?)

                           

            

GMA Homepage

GMA

SEARCH

February 9, 2009

GMA Names Pam Bailey President and CEO GMA has named Pamela G. Bailey, president and CEO of the Personal Care Products Council, its new president and CEO. Click here to read the announcement by GMA Chairman Doug Conant of Campbell Soup Company.

GMA and Deloitte Release New Shopper Marketing Study Download Delivering the Promise of Shopper Marketing: Mastering Execution for Competitive Advantage.

GMA Food Safety Site Visit www.keepfoodsafe.org for the latest food safety policy news and to learn what Congress and federal

agencies should do to strengthen America’s food safety net.

GMA Science Policy Paper Series Click here to learn about Bisphenol A, high fructose corn syrup and more.

GMA Calls on Congress to Rethink Food to Fuel Mandates Visit the Food before Fuel Campaign Web site at

www.foodbeforefuel.org.

GMA Career Center Employers and J ob Seekers Click Here for CPG industry Career Resources.

The CPG Award for I nnovation and Creativity

2/24/2009 Food Claims and Litigation Conference Rancho Mirage, CA more » 4/5/2009 I nformation Systems/ Logistics Distribution Conference Miami, FL more » 4/14/2009 Science Forum Arlington, VA more »

                           

            

Did you know? In crop year 2008-2009, it is estimated that ethanol will consume one-third of our annual corn crop.

What is the Food Before Fuel Campaign?

The Food Before Fuel Campaign was created to urge public officials to revisit and restructure policies that have increased our reliance on food as an energy source, and to carefully address how to develop alternative fuels that do not pit our energy needs against affordable food and environmental sustainability.

Learn More.

Click here to learn more about how food-to-fuel policies are impacting food prices and the environment.

Members

FOOD FOR ALL FORMICA BROTHERS BAKERY

GLOBAL COLD CHAIN ALLIANCE GROCERY MANUFACTURERS ASSOCIATION

VIEW ALL MEMBERS »

Food Before Fuel Site

                           

            

National Biodiesel Board Site

                           

            

BiodieselBiodiesel is made from sustainable renewable resources that are abundant and available right here in the United States. It is made from plant oils, animal fats and even recycled grease and works in conventional diesel engines, with one major exception - biodiesel significantly reducesharmful emissions.A proven alternativeReplaces tens of millions of barrels of petroleumAdded $4 billion the U.S. economy last yearReduces carbon monoxide, hydrocarbons and other harmful emissionsLearn more about one of the fastest growing alternative fuels that wecan make right here at home while making our environment cleaner andhelping to grow the economy. The Future of Fuel is here.

Biodiesel Benefits

                           

            

Meeting today's needs for environmental stewardship, economic prosperity, and quality of life without compromising future generations' ability to meet these needs for themselves.

Sustainable Biodiesel: Demonstrates environmental stewardship across its lifecycle by maximizing net energy balance and minimizing negative impacts on natural ecosystems, globally and locally; Adds value, creates wealth, and enhances quality of life for the entire community of stakeholders.

Sustainability defined:

                           

            

Environmental Working Group

“Corn-based ethanol production, spurred by federal subsidies and mandates, is polluting our nation’s water, eroding our soil and plowing up precious wildlife habitat -- and worst of all is likely contributing to global warming,” Cox said. “As the polluting ethanol industry gets fat at taxpayer expense, proven clean technologies such as solar, wind and geothermal are fighting for support. America needs a truly renewable energy portfolio, and the evidence is mounting that corn-based ethanol will not get us where we need to go.”Go here for the full report - http://www.ewg.org/node/27498

                           

            

Ethanol: FoodPriceTruth.org

Did you know:There are 56 pounds of corn in a bushel. When corn is $4.00 per bushel, a pound of corn is worth 7.1 cents. According to the Beef Checkoff, it takes 2.6 pounds of corn to produce one pound of beef. This equates to 18.6 cents worth of corn when corn is $4.00 per bushel. The National Pork Board says it takes 3.6 pounds of corn to produce one pound of pork. This equates to 25.7 cents worth of corn when corn is $4.00 per bushel. It takes 2.0 pounds of corn to produce one pound of chicken, according to the National Chicken Council. This equates to 14.3 cents worth of corn when corn is $4.00 per bushel.

                           

            

Farm and ethanol groups say biofuels have become a scapegoat for higher food prices, claiming the real culprit issurging oil prices. In their corner: data supplied by the Bush administration.Livestock and food companies want the U.S. to step off the biofuels accelerator by rolling back governmentmandates that will require the oil industry to use 9 billion gallons of ethanol this year. In their corner: KeithCollins, Mr. Glauber’s predecessor, who recently released a study funded by Kraft Foods Inc. showing that ethanol is having a bigger impact than the government has acknowledged.

Biofuel Bean Counters Forget to Count the BeansWSJ on line 6/25/2008

Wall Street Journal

                           

            

Consumer Price Indices (CPI)Food at Home

Fats & OilsGasoline

Food Away From Home

                           

            

Producer Price Indices (PPI)

Wheat Corn

Oilseeds Soybeans

                           

            

Dry Peas & Lentils (PPI)

Dry Peas Dry Lentils

                           

            

Soybean Oil (BO, CBOT)Weekly Price Chart

                           

            

Food vs Fuel

Indirect Land Use Change (iLUC)

                           

            

Searchinger et al. Journal of Science, Feb 2008

                           

            

Corn Ethanol vs Gasoline: GHG & iLUC

                           

            

Later Refinements in iLUC & GHG Impact Models

“… cropping management is a key factor in estimating greenhouse gas emissions associated with land use change. Sustainable cropping management practices (no-till and no-till plus cover crops) reduce the payback period to 3 years for the grassland conversion case and to 14 years for the forest conversion case.”

                           

            

Greenhouse gases, Regulated Emissions, and Energy use in Transportation (GREET)1 developed by Argonne National Laboratory, CA ARB, LCFS Program

                           

            

Biodiesel Well to WheelCA no iLUC

                           

            

Biodiesel Well to Wheel Energy & GHGCA no iLUC

                           

            

Diesel Well to WheelCA no iLUC

                           

            

Diesel Well to Wheel Energy & GHGCA no iLUC

                           

            

Ethanol Well to WheelCA no iLUC

                           

            

Ethanol Well to Wheel Energy & GHGCA no iLUC

                           

            

Biodiesel is not Ethanol

Soybean meal vs distillers grain Alternative market for soy oil Well to tank energy

(363,058 vs 1,657,651 Btu/mmBtu) Well to tank ghg

(26.93, 68-74 gCO2e/MJ)

iLUC (100-110 gCO2e/MJ) dwarfs differences, the carbon offset benefits of both sets of feedstock (and the 95.3 gCO2e/MJ

                           

            

Government Support

                           

            

Energy Independence & Security Act of 2007Renewable Fuel Standards

RFS-2: Must reduce ghg by 50%, EPA may adjust to 40%EPA must consider “significant indirect emissions”

                           

            

Fuel Mandates

California Low Carbon Fuel Standard (LCFS)

Carbon intensityGasoline: 95.85Diesel: 94.71Biodiesel: 26.93

MinnesotaWashingtonOregonCaliforniaMissouriMontana

States with or considering mandates:

New MexicoFloridaConnecticutMississippiArkansas

                           

            

Support and Subsidies

$1.00 per gallon blenders tax credit $0.10 per gallon producer’s credit

(less than 60MM gallons capacity)

                           

            

Food versus Fuel

Alternative liquid fuel Alternative use of feedstock Energy Policy Implications Climate Change- Environmental Policy

Implications Farm Policy Implications