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News Link • Food

Study: Corn ethanol may cost foodservice $3.2B a year

• Paul Frumkin, NRN

A new study commissioned by the National Council of Chain Restaurants found that the use of corn as a fuel source potentially could cost U.S. foodservice chains as much as $3.2 billion annually.

The report, which was conducted by PricewaterhouseCoopers, contends that the federal government’s policy of fostering the use of corn — the chief ingredient in U.S. livestock feed — as a source for ethanol in gasoline is artificially inflating corn prices and thereby driving other food chain commodity costs upward.

As a result, chain operators and other restaurateurs must wrestle with historically high food costs at a time when the sputtering U.S. economy continues to prompt many consumers to rein in spending.


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