New U.S. group defends ethanol in food vs fuel fight

By Lisa Shumaker

CHICAGO (Reuters) - A new group is adding its voice to the debate on using crops to produce alternative fuels such as ethanol amid rising food prices and shortages in some countries.

The Alliance for Abundant Food and Energy in Washington D.C. was created by Archer Daniels Midland Co, DuPont Co, Deere & Co, Monsanto Co and the Renewable Fuels Association (www.foodandenergy.org).

"There are critics who are trying to create an either-or decision between food and fuel," said Mark Kornblau, the alliance's executive director. "We believe this is a false choice. Today, more than 90 percent of crops in the United States and around the world are used exclusively for food."

The group believes that agricultural innovation -- such as genetically modified crops -- is the best way to address global hunger, not reducing biofuel production.

Decatur, Illinois-based ADM is one of the world's largest producers of biofuels, and Monsanto is a leading producer of GMO seeds.

Kornblau did not say exactly how much money the founding members contributed but said "the initial budget is in the multimillions."

The food versus fuel debate heated up as U.S. food prices last year saw their biggest increase in 15 years and are forecast to rise by 5 percent this year.

World food prices rose by 40 percent last year, causing food riots, hoarding and bread lines in some countries.