Earlier this week Kraft – which makes its namesake cheese singles, Philadelphia cream cheese and Oscar Mayer meats – posted a 13% drop in first- quarter net income amid surging costs for dairy, wheat and other commodities.
According to Dow Jones, food manufacturers like Kraft Foods are blaming ethanol producers for cost increases.
Kraft’s Chief Executive Irene Rosenfeld has been in Washington in recent weeks to talk to key decision makers on the diversion of corn for biofuels. “This was a policy that was well intentioned but has had some unintended consequences that have exacerbated commodity increases in certain parts of the world causing people to go hungry,” she said.
People are going hungry? Or companies aren’t making their numbers and “people” aren’t getting their bonuses? Either way, it’s bad news.
Meanwhile, corn growers are in Washinton defending their position.
“While we do have some role in higher corn prices, we’re closer to a Little Bo Peep than an ax murderer,” said Rick Tolman, President of the National Corn Growers Association at the National Press Club.
Archer Daniels Midland Co. is a big ethanol producer, so it’s ADM vs. Kraft. I’m a big fan of clean energy, so I want to side with ADM and the corn growers who supply them. But the better idea is clearly to buy locally at farmer’s markets, grow a garden, buy a fishing pole, clean the shotgun, etc.
When’s the last time you went hunting and/or gathering?