July 31 – The cost of beef, poultry and pork is largely affected by two things: the cost of oil and the cost of feed.
In 2005, Congress passed the Energy Policy Act, creating the Renewable Fuel Standard (RFS) program. The program is designed to reduce America’s reliance on foreign oil and instead, turn to a renewable resource, in this case, corn, to help meet the US’ growing energy needs. The original RFS program required “7.5 billion gallons of renewable-fuel to be blended into gasoline by 2012.” The program was later expanded and now requires “36 billion gallons by 2022.”
Despite helping alleviate the cost of gas, the cost of a bushel of corn has skyrocketed—driving up feed prices for farms and ranches producing beef, pork, and poultry.
These costs are are passed on through the food industry and are eventually dumped on the consumer.
Lisa Ingram, the president of the White Castle fast food chain, recently said “it’s harder every day to offer great value because our costs are skyrocketing…In fact, since the RFS became law our cost for beef has increased by forty-seven percent,” according to a recent Fox News article.