20/10/2006
Farmers are trying to avoid being unfairly blamed for higher food prices. The American Corn Growers Association says it's warning consumers to be on the alert for what it calls "possible price gouging by food processors."
The U-S Department of Agriculture has said it expects corn prices to rise. The head of the corn growers group says some companies have indicated they may have to charge more for their products because of that.
He says he wants consumers to be aware of the relationship between the price of corn and the price of cereal.
Larry Mitchell, American Corn Growers Association Chief Executive, says, "We at the American Corn Growers just want people to understand that a 25-cent increase in a bushel of corn, which is 56-pounds of food, would result in less than a half-cent increase in a box of corn flakes."
In response, Craig Henry, Senior Vice President of the Food Products Association says, "The marketplace for food is very competitive, and consumers look for value as well as for good taste, nutrition and safety. While the cost of ingredients can affect the price of food products, food processors do all they can to keep their prices to consumers competitive."
