As the debate on whether more ethanol use is sending food prices skyrocketing rages, the ethanol industry is positioning itself to set the record straight.

Four major players in the ethanol industry – Hawkeye, ICM, POET, and Green Plains Renewable Energy, Inc. (GPRE) – yesterday launched an organization called Growth Energy to promote the use of ethanol in a sustainable way. GrowthEnergy also plans to take head on “Big Food” for blaming the ethanol industry for high food prices.

In a press statement issued at the launch of GrowthEnergy, the heads of the four companies argued there was no link between ethanol use and food prices. “Big Food and their Washington lobbyists have been trying to blame the rising cost of food on American ethanol producers and the cost of corn. Well, now that the price of corn has dropped more than fifty percent since the summer, we ask the Big Food industry to explain to the American people why food prices are still so high,” said Jeff Broin, CEO of POET.

Dave Vander Griend, CEO of ICM pointed out that the price of corn had gone down by almost 50 per cent over the last few months yet food prices had not followed suit. “Our current low-priced corn, high-priced food economic situation shows that the experts were right - biofuels production does not lead to increased food costs,” said Griend.

With the launch of GrowthEnergy, it seems the war of words between ethanol producers and the food industry is likely ratchet up. GrowthEnergy is vowing to wage an intensive grassroots campaign to fight disinformation that more ethanol use leads to high food prices. It has already prepared a policy brief (PDF) on the issue, to bolster its argument.