As commodity prices like corn and oil continue to drop, many are wondering why grocery prices are still so high, said Todd Sneller, administrator for the Nebraska Ethanol Board.

After peaking earlier this year, Sneller said corn prices dipped below $3 last month. But grocery manufacturers, he said, are still charging high prices for food products while raking in big profits—and blaming biofuels.

According to Sneller, the Grocery Manufacturers Association started a $300 million disinformation campaign blaming ethanol for high grocery prices.

“But now that corn prices have plummeted, can consumers count on the GMA members to lower their prices?,” he said.

The truth, Sneller said, is that biofuels like ethanol save consumers money by lowering gas and oil prices and will play a key role in leading the U.S. toward greater energy security.

“OPEC pushes up oil prices to the brink then drops them to keep the U.S. hooked on foreign oil,” Sneller said. “Investing in alternative, renewable fuels like ethanol are the only real long-term solution to volatile fuel prices.”

As the ethanol industry evolves, some plants are returning to more locally-based ownership models. Locally owned plants create a significant economic impact on the communities and states in which they operate.

“We are seeing a few plants move back to local control and ownership, which demonstrates the strength of Nebraska’s agricultural sector,’ Sneller said. “In many cases this makes it easier for an ethanol plant to adjust quickly to changes in the market.”

The American Corn Growers Association (ACGA) is calling for support for federal policy reforms to protect American farmers, consumers and investors from the negative impacts of radical market fluctuations caused by natural disasters, economic downturns, and the growing worldwide demand for food and biofuels.

According to Keith Bolin, President of the American Corn Growers Association (www.acga.org), “Our policy recommendations will help protect against radical market shifts and help stabilize and ensure returns for farmers, consumers and investors. We want to help temper market swings triggered by climatic, speculative and increasing new market demands such as with the Ethanol and Alcohol Fuel industry. The recent VeraSun bankruptcy filing underscores a need for Federal market stabilization policies that will prevent further setbacks to the fledgling American farmer-driven renewable energy industry by enforcing contract commitments and providing food and fuel reserves. Clearly good policy decisions now can help ensure healthy stable growth across the board.”

Should court rulings in the VeraSun filing be used to establish economic and business precedence, food, grain and fuel feed producers will have no assurance that when they deliver to an ethanol facility (or granary supplying biofuel plants), that their signed contracts will be honored and paid as agreed, on a timely basis.

ACGA is strongly urging its members, American farmers and local, state and Federal legislators to support the following policy recommendations:
Forward contracts held by buyers of farm commodities to be treated no differently than delivered goods or services in a court of law
Federal credit guarantees to be given to struggling ethanol companies
Transparency be increased on speculative positions in futures trading
Minimum prices be set on ethanol through a price support mechanism and a strategic ethanol reserve
Realistic price supports be enacted for grains and oilseeds
Strategic grain reserves be enacted to ensure adequate feed stocks and allow for supply buffers

Bolin (a corn and hog farmer from Bureau County, Ill.) added, “Congress has the power and the new administration has the authority to rapidly adopt these recommendations. The policies are necessary to protect and reward the investment America’s farmers are making in developing sustainable solutions for food, fuel and renewable energy production. This should be viewed as the very core of homeland security. Increasing job opportunities, improving yields and guaranteeing fair market values will invigorate and sustain our rural economy making it possible for farmers to continue providing for the needs of our great nation.”

Tom Johnson of meatingplace.com reports that JBS S.A., National Beef Packing Co. and the U.S. Department of Justice have agreed to stay court proceedings intended to block the Brazilian company’s acquisition of the Kansas City, Mo.-based packer amid an apparent effort to settle the case.

Johnson writes that according to documents filed Tuesday in the U.S. District Court in Chicago, a settlement opportunity “that arose within the past few days” could come by way of the two meatpackers selling plants to enhance competition in certain geographical areas.

“Plaintiffs will need to investigate any serious settlement proposal to determine whether it would adequately restore the competition that would be lost if JBS S.A. acquires National Beef,” the DOJ filing states. “Plaintiffs must ensure that any divestiture proposal includes all of the assets necessary for a purchaser to be an effective, independent, long-term competitor, including the tangible and intangible assets necessary for purchasing, production, distribution, and sales.”

Judge Elaine E. Bucklo granted a stay of two weeks to allow the parties time to continue discussions.

Brand Republic (brandrepublic.com) has posted an article saying that fast-food chain Burger King has launched a meat-scented cologne in the US for under $4 called “Flame”.

Brand Republic says that the men’s fragrance, which is being sold at a New York retailer and online, is being touted as “the scent of seduction, with a hint of flame-broiled meat”.

Meat-loving consumers can buy a bottle of the scent for just $3.99, according to Brand Republic.

Burger King has also launched a website called FireMeetsDesire.com to accompany the cologne.

According to Brand Republic, the site reads: “The Whopper sandwich is America’s favourite burger. Flame by BK captures the essence of that love and gives it to you.”

Users are also greeted with the caption: “Now you can set the mood for whatever you’re in the mood for,” the Website says.