(Omaha World-Herald) — The U.S. Department of Agriculture revved up its defense of ethanol and other biofuels Monday. Secretary of Agriculture Ed Schafer and other top USDA brass said ethanol has played a relatively minor role in rising food prices. Bigger factors include skyrocketing gas prices, increased global consumption of meat and dairy products, and significant droughts in several areas around the world, they said. However, Scott Openshaw, Grocery Manufacturers Association spokesman, points to sharply rising food prices in their fight against ethanol requirements. The USDA says the increase last year for all foods was about 4%, while the projection for 2008 increases in food prices is 4.5% to 5.5%. "A very significant driving force behind that has been corn being diverted into fuel," Openshaw said. Schafer and others have pointed to droughts in Australia, Europe and the U.S. as having a significant effect on commodity prices worldwide. They also cited increased demand for meat and dairy products among the expanding middle class of India and China, meaning more feed is being consumed by more livestock.
