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May 14, 2008

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Dear Subscriber,

Today the Snack Food Industry made its case in US congress for changes in the US biofuel policy, in light of the dramatic increase of food prices and the environmental costs.

Daryl Thomas, chairman of the Snack Food Association, spoke to the House Small Business Committee during a hearing on the impact of food prices on small business.
He told the committee members that congress should revisit federal food-to-fuel mandates and subsidies. Daryl Thomas, also Senior VP Sales and Marketing for Herr’s Foods Inc. told the committee that snack food manufacturers such as Herr’s have seen production costs rise by at least 15% due to skyrocketing costs of commodities. Farm level corn prices have increased more than 150% and soybean prices have jumped more than 100%, he said.

With these statements the Snack Food Association joins a growing chorus of voices, consisting of environmental groups, Non Governmental Organisations such as FAO and many others increasingly critical of the biofuel policies in the US, Canada and many other countries.

So what is the impact of biofuels on the food prices? Although biofuels are not the only factor driving up the prices - just consider gas prices, with oil close to 125 USD/barrel - it diverts significant amounts of potential food into energy production: last year, anywhere between 20 – 40 % of all corn in the US was used for energy production.

The unfortunate aspect is that some biofuels hardly contribute to actual savings: use of ethanol from corn instead of gasoline saves only 15%. Biodiesel from soybean offers more perspective with about 40% savings. Ethanol produced from sugar cane in Brazil comes out best, with 80% saving in energy input. But this is only true for established production locations. If forest is destroyed to create the land to grow the sugar cane, the net energy effect is negative for many, many years (I have read somewhere up to 20 years). And high food prices and food shortages obviously drive deforestation.

So is there no future at all for biofuels? Actually there is… Daryl Thomas: “In particular we should accelerate development of cellulosic ethanol derived from crop wastes, grasses and other materials that do not increase food prices, hold significantly greater promise to displace traditional sources of gasoline, and could have less impact on the environment.”

Use of potato waste for the production of ethanol also falls in this category.

Enjoy reading,

Paul van Eijck

Featured Event

Hope to see you at the NRA annual exhibition or the All Candy Expo 2008!

National Restaurant Association (NRA) restaurant hotel-motel show, May 17-20, 2008, McCormick Place, Chicago

You will be able to meet a whole range of manufacturers of (frozen) potato products, including Aviko, Basic American Foods, Conagra (Lamb Weston)and Keystone Potato Products.

The All Candy Expo 2008, May 20-22, 2008 McCormick Place, Chicago

In the same venue as the NRA, so easy to combine, you can meet with several snack manufacturers: exhibitors include Herr's, Kraft, Proctor and Gamble, The Inventure Group and Utz. And of course, the Snack Food Association (SFA) is represented as one of the partners in the organisation of this exhibition.

More Events... 

Featured Market Research Report

 

Premium Company Profile: Yum! Brands, Inc.

YUM! Brands intend to improve the brand appeal of Long John Silver's and A&W All American Food as a part of its multibrand expansion strategy. The company expects to register strong growth by building its existing markets and expanding into new markets.

Read more...

Premium Company Profile: McDonald’s Corporation

McDonald's Corporation (McDonald's) is the world's largest foodservice retailing chain, known for its burgers and fries, which it sells through its 31,370 fast-food restaurants in more than 118 countries. In 2008, it plans to leverage upon its key consumer insights and global experience, while developing and implementing initiatives surrounding convenience, branded affordability and menu variety.
Read more...

More Market Research Reports

Featured Book

Handbook of Alternative Fuel Technologies

Handbook of alternative fuel technologiesIn addition to enabling a clean and energy efficient future, alternative fuel sources are fast becoming a necessity for meeting today's growing demands for low-cost and convenient energy. The Handbook of Alternative Fuel Technologies offers a thorough guide to the science and available technologies for developing alternatives to petroleum fuel sources and petrochemical feed stocks.

Read more...

More Books

Featured Product

PW2050 digital weigher

Digital Balance for Weight in Water Assessment

  • Any weight of potatoes can be measured
  • Depth of water required is only 40cm
  • Use in the QC laboratory or in the field
  • Portable, simple to use and robust

On the push of one button the PW-2050 weigher automatically calculates percentage dry matter and specific gravity of a potato sample. The PW-2050 can store up to 5000 individual weights in its memory and can download data to a PC or printer. The time and date of each weighing is recorded and printed and will remain in the memory until cleared.

Read more...

More products

News

French Fries and Potato Specialties

New Zealand More shareholders agree to accept takeover offer Mr Chips by Simplot
Canada McCain Foods Canada relocates Marketing department from Florenceville to Toronto
More News on French Fries and Potato Specialties

Chips and Snacks

- SFA Installs New Chairman at SNAXPO
United States Snack Foods Association (SFA) urges US Congress to reconsider Food-to-Fuel Policies due to skyrocketing Food & Commodity Prices
United States SunChips Brand Donates to Sustainable Re-Build Efforts in Greensburg, Kansas
United States York County, Pa., refers to itself as the Snack Food Capital of the World
Mexico No hay relación entre Sabritas y obesidad. La empresa no colocará advertencias a sus productos
More News on Chips and Snacks
 

Dehydrated Potato Products

United States United States: NPC urges passage of food aid funding
More News on Dehydrated Potato Products

Potato Starch

European Union EU delays decision on licensing to grow new biotech crops
More news on Potato Starch


Ingredients for Potato Processing

United States Snack Foods Association (SFA) urges US Congress to reconsider Food-to-Fuel Policies due to skyrocketing Food & Commodity Prices
European Union Gain Report: Discussion Paper of German Ag-Industry about EU Biotech Policy Implications
Canada Gain Report: Oilseeds and Products Canada 2008
Argentina Gain report: Oilseeds and Products Argentina 2008
More News on Ingredients for Potato Processing

Processing Equipment

- Managing Spiking Metals Prices
More News on Processing Equipment

Potato Supply Chain

Netherlands Erwinia in pootgoedaardappelen kost handel 5 miljoen per jaar
Bangladesh Bangladesh tells its people to “Think potato, grow potato and eat potato,”
United Kingdom UK minister gives go-ahead for new GM potato trial
Canada P.E.I. donates spuds to Boston food bank despite hard times
More News on Potato Supply Chain

QSR Restaurants

United States Senator and Republican presidential candidate John McCain to address NRA Show attendees
- New Frymaster Protector fryers win Kitchen Innovations award at NRA 2008
United States Triarc Reports First Quarter 2008 Results
More News on QSR Restaurants

Health and Nutrition

- Acrylamide may raise kidney cancer risk
More News on Health and Nutrition

Energy and Environment

United States Snack Foods Association (SFA) urges US Congress to reconsider Food-to-Fuel Policies due to skyrocketing Food & Commodity Prices
United States SunChips Brand Donates to Sustainable Re-Build Efforts in Greensburg, Kansas
More News on Energy and Environment


New Companies

Morton Salt United States
Morton is a supplier of salt and mixtures of salt designed for food processing industry.
Jantar Ltd Stolon Poland
Jantar Ltd. Z.P.Z. STOLON is a Polish producer of potato flakes since 1889.
NatuBer, Transformados de patata de Alava s.l. Spain
Spanish manufacturer of fresh, peeled and cut potato products.