WASHINGTON – Senator Chuck Grassley today made clear his disappointment in the decision of the National Retail Federation and National Restaurant Association to participate in an ethanol smear campaign promoted by the Grocery Manufacturers Association.
“This unprecedented attack on another member of the food chain has been littered with misleading information that has been passed on by the Grocery Manufacturers Association. We can’t sit idly by and watch a group devastate an industry with misinformation and half-truths,” Grassley said. “The fact is that ethanol keeps gas prices lower and accounts for only a small percentage of the increase in food costs. Just imagine the transportation costs without biofuels.”
Grassley has been the leading congressional voice for ethanol. He was the first to voice opposition to the smear campaign mounted by the Grocery Manufacturers. He has since sent letters to Iowa members of the Grocery Manufacturers Association as well as the Iowa Retail Federation and the Iowa Restaurant Association. Grassley has also revealed information in speeches on the Senate floor. All of these documents can be found on Grassley’s website, http://grassley.senate.gov.
Here’s a copy of the text of Grassley’s letters sent today.
June 5, 2008
Ms. Tracy Mullin, President and CEO
National Retail Federation
325 7th Street, NW
Washington, DC 20036
Dear Ms. Mullin:
I’m writing to express my disappointment and bewilderment with your organization’s participation in a press conference call hosted by the Grocery Manufacturers Association to blame ethanol and our biofuels policies for the increasing cost of food.
I’ve been pleased to work with you and your association in the past on issues of mutual concern. I recognize the significant contribution that retailers add to our economy and our society, and for that reason I’ve worked cooperatively with you and your members on policies such as class action and bankruptcy reform, opening foreign markets to U.S. products, and relief from the alternative minimum tax. Because of our past cooperation on these issues, it’s particularly troubling to me that you’ve decided to participate and support the Grocery Manufacturers Association’s misleading and disingenuous assault on ethanol.
The fact is, the biggest culprit behind the increase in food and groceries is the increase in crude oil and energy costs. Many economists also point to the worldwide economic growth and demand for grains and meat, global weather problems and the weak U.S. dollar as having a bigger impact on the price of food than biofuels. Ethanol and biofuels are extending our fuel supply and actually lowering gas prices. Your members should know that the farm value of every food dollar is only 19 cents. Perhaps the National Retail Federation would be better served by asking GMA’s member companies to reduce their portion of the remaining 81 cents of the food dollar by lowering transportation or packaging costs or lowering their profits. The GMA’s efforts to undermine our biofuels policies won’t lower food prices, but it will increase prices at the pump, and in turn drive food prices even higher.
I’m disappointed by your decision to participate in this misleading campaign that is undermining and denigrating the patriotic achievements of American farmers and small businesses in the agriculture industry to reduce our dependence on foreign oil while also providing a safe, abundant and reliable food supply. I therefore strongly encourage you to no longer participate in this anti-ethanol coalition and ask that you call on the Grocery Manufacturers Association to put an end to this smear campaign. I look forward to hearing from you soon.
Sincerely,
Charles E. Grassley
United States Senator
June 5, 2008
Ms. Dawn Sweeney, President and CEO
National Restaurant Association
1200 17th Street, NW
Washington, DC 20036
Dear Ms. Sweeney:
I’m writing to express my disappointment and bewilderment with your organization’s participation in a press conference call hosted by the Grocery Manufacturers Association to blame ethanol and our biofuels policies for the increasing cost of food.
I’ve been pleased to work with you and your association in the past on issues of mutual concern. I recognize the significant contribution that restaurants add to our economy and our society, and for that reason I’ve worked cooperatively with you and your members on policies such as minimum wage increases, restaurant depreciation, and the repeal of the estate tax. Because of our past cooperation on these issues it’s particularly troubling to me that you’ve decided to participate and support the Grocery Manufacturers Association’s misleading and disingenuous assault on ethanol.
The fact is, the biggest culprit behind the increase in food and groceries is the increase in crude oil and energy costs. Many economists also point to the worldwide economic growth and demand for grains and meat, global weather problems and the weak U.S. dollar as having a bigger impact on the price of food than biofuels. Ethanol and biofuels are extending our fuel supply and actually lowering gas prices. Restaurant owners should know that the farm value of every food dollar is only 19 cents. Perhaps the National Restaurant Association would be better served by asking GMA’s member companies to reduce their portion of the remaining 81 cents of the food dollar by lowering transportation or packaging costs or lowering their profits. The GMA’s efforts to undermine our biofuels policies won’t lower food prices, but it will increase prices at the pump, and in turn drive food prices even higher.
I’m disappointed by your decision to participate in this misleading campaign that is undermining and denigrating the patriotic achievements of American farmers and small businesses in the agriculture industry to reduce our dependence on foreign oil while also providing a safe, abundant and reliable food supply. I therefore strongly encourage you to no longer participate in this anti-ethanol coalition and ask that you call on the Grocery Manufacturers Association to put an end to this smear campaign. I look forward to hearing from you soon.
Sincerely,
Charles E. Grassley
United States Senator