Corn products for fuel can have contributed to a 200% rise in the price of corn since January, 2007. That gain translates to an increase of 75% in the price of gasoline, 115% in the price of oil, 20% in overall food prices and even an increase of up to 30% in insurance rates.
New York, NY, May 03, 2008 -- Capital Earnings & Research are experts in national polling and targeting consumer language for TV and radio advertisements, conference earnings calls and public relations by using focus groups and "dial-testing" technology for Wall Street and Fortune 5000 companies
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When is it time to call corn and corn products, NUTS? -- When we use them for fuel products.
After conducting a nationwide poll** during April 29-30, 2008 of 483 random consumers, our results revealed that 64% of the respondents thought it’s just plain nuts to put our food supply in the gas tanks of cars and trucks. Our poll question was open-ended and simple - ‘In one sentence – why would anyone put a gallon of milk in their vehicle’s gas tank?’ The responses varied after the sample population was explained that, including efficiencies, subsidies, manufacturing and transportation, costs to add ethanol to gasoline were approximately $6/per gallon.
As we followed up with a question line, our consumers left us with the opinion that they thought ethanol was directly responsible for at least some of the costs of food rising and certainly saw how ethanol could increase the cost of gasoline at the pump. Our most notable response came from a lady at the Mall of America in Minnesota. The consumer stated that, “ethanol has to be another of those experiments coming out of Washington;” She added, ‘those are the same people who are raising the price of stamps in the next few days that will represent about a 10% increase over the last 2 years. If they can’t keep something as simple as the stamp program under control, why should we expect them to do any better with Social Security, Medicare and a proposed Health Care Program.’
So what can consumers expect? As the price of corn and corn products continues to increase, ethanol manufacturers will pass the increases along to the consumer raising the price of gasoline even more. As food prices increase, so will all food related costs including a night out at a favorite restaurant.
Looking out for the consumers interest are U.S. Senator Kay Bailey Hutchison (TX) and Texas Governor, Rick Perry. Both have stepped ahead of their colleagues and asked for some method of relief for consumers. Perry has petitioned a 50% waiver on the renewable fuel standard of ethanol produced from grain since it has already demonstrated a negative impact on the overall economy. Hutchison feels that ethanol, as it is currently mandated, is a mistake according to her article prefaced in ‘Capitol Comment’ and is requesting a freeze on the bio-fuel mandate. She also has introduced an energy bill that already has numerous co-sponsors.
Corn products for fuel can have contributed to a 200% rise in the price of corn since January, 2007. That gain translates to an increase of 75% in the price of gasoline, 115% in the price of oil, 20% in overall food prices and even an increase of up to 30% in insurance rates. The alternatives are to tap the available energy in the U.S. and harvest our energy for domestic consumption if only for the ‘Green Effect.’ The use of corn for fuel is one of the greatest pollutants to the Gulf of Mexico that creates larger aquatic dead zones caused by fertilizer runoff.
Our consumers who participated in this poll got it right. The corn for fuel mandate appears to add threats to human existence in some parts of the world. We need to realize that modifying this mandate can produce enough food to feed over 100 million people in the world for the next year. So when is it time to call corn and corn products really “NUTS?” When we use food to fuel our gas tanks! --- contribution by H. Richard Oprinski, Chief Investment Officer all actual poll data are available on request Press Release Distribution By PressReleasePoint
Contact: H. Richard Oprinski Capital Earnings & Research New York, NY 256-738-2200 info@earningsresearch.com http://www.earningsresearch.com
