Hasta La Creative!

Earlier this week Kraft – which makes its namesake cheese singles, Philadelphia cream cheese and Oscar Mayer meats – posted a 13% drop in first- quarter net income amid surging costs for dairy, wheat and other commodities.

According to Dow Jones, food manufacturers like Kraft Foods are blaming ethanol producers for cost increases.

Kraft’s Chief Executive Irene Rosenfeld has been in Washington in recent weeks to talk to key decision makers on the diversion of corn for biofuels. “This was a policy that was well intentioned but has had some unintended consequences that have exacerbated commodity increases in certain parts of the world causing people to go hungry,” she said.

People are going hungry? Or companies aren’t making their numbers and “people” aren’t getting their bonuses? Either way, it’s bad news.