Fuel for thought

Over the past few weeks, I’ve noticed several news stories which focus on shortages in the world food supply, and global increases in food costs. And in many of these stories, alternative fuels are implicated, if not accused, of aggravating the problem. (As an example, see how the issue was raised in a NY Times story last Friday.)

People have been asking for more ethanol production and other bio-fuel alternatives for years (or at least, they’ve been asking for ways of mitigating high gas prices). Recently, petroleum prices have risen to a point where the production of alternative fuel seems to make financial sense. But there is increasing global scrutiny over a market in which bio-fuels are competing for the same crops and commodities which were previously devoted to the food supply.

Implications: It is not my intent to express a personal position on this issue, one way or the other. But I think it’s important for us to anticipate that consumers will have an opinion. It is reasonable to expect increasing media attention focused on BOTH high petroleum costs and world hunger, two topics which can impact consumer sentiment with great force. Just as consumers might be interested in where you company stands on charitable giving, global warming, or fair trade, don’t be surprised if this issue joins the list of hotly debated topics.

For example, some people might be delighted that your company’s delivery trucks use alternative “bio-fuels,” because “the energy comes from here at home and helps our farmers.” Other people might be offended, in response to their belief that bio-fuels might be tapping commodities which are already in short supply in a world that is hungry. Again, I intend no subjective editorial viewpoint here; but as news coverage gives this topic a higher profile, expect it to stimulate passionate and polarized opinions.

Mike Anderson