Thursday, November 29, 2012

Restaurant chains join lobby vs. ethanol


The National Council of Chain Restaurants has joined the meat industry in the United States in opposing continuation of the mandatory blending of ethanol with gasoline.

The council commissioned a study that indicates the ethanol mandate is costing the restaurant owners $3.2 billion a year because it increases the cost of corn and related foods.

“The use of corn-based ethanol required by the federal Renewable Fuel Standard mandate has dramatically distorted the market and increased costs throughout the food supply chain,” said NCCR Executive Director Rob Green.

The U.S. Environmental Protection Agency recently said after reviewing the policy that it won’t change the mandates which are scheduled to increase to at least 15 per cent ethanol in gasoline.

Canada’s basic standard is five per cent ethanol and there has been nothing as strident as the U.S. lobby against ethanol in Canada.