AFBF TAKES ISSUES WITH COMMENTS BY KRAFT CEO

AFBF is taking issue with comments made by Kraft Foods CEO Irene Rosenfeld in an interview in the December 11, 2008 issue of USA Today. Rosenfeld claims that 40 percent of the nation’s food supply is being diverted for use in fuel. 

According to Bob Young, AFBF’s chief economist, this figure is way off the mark. AFBF is preparing a response to set the record straight. AFBF also encourages state Farm Bureaus to post comments refuting the claims on the USA Today Web site. 

Rosenfeld responded in the interview as follows on the issue of biofuels: 

Q: Like most companies, you have lobbyists in Washington. What’s their agenda with the new administration coming in? 

A: One of the most important agenda items for us is the whole biofuels phenomenon. Forty percent of the food supply is being diverted for use in fuel. There's not a lot of indication that it has a beneficial impact on the environment. Corn-to-ethanol has had a very difficult impact on the cost of food, and I'd like to see the administration take that challenge on. 

Q: Can you put a number on how much your costs have gone up? 

A: Our costs have gone up significantly in 2006 to 2007 and again in 2008. The particular impact of our biofuels policy is hard to tease out. But there’s no question that those policies have had some unintended consequences. We need an administration that is willing to talk about the facts and science as opposed to bending to political pressure to address some of these issues.