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USA - Rise in ethanol production hits animal feed prices

23 Dec 2009

Ethanol production more than doubled feed costs for livestock producers in the U.S. between 2006 and 2008, according to a soon-to-be released report from the Government Accountability Office (GAO). An article in the Times-News of Twin Falls, Idaho, said the report shows that up to 60 percent of corn grown in the U.S. before 2006 was used in beef, pork, poultry and dairy production but that by 2008 more than one-third of corn in the U.S. was diverted to ethanol production. The report supports livestock producers' claims that ethanol has been undercutting agricultural sectors. It also found that livestock producers face reductions in land available for grazing.

NPPC has insisted that the Obama administration and the U.S. Environmental Protection Agency study the impact that ethanol production has on feed prices for livestock producers. While the U.S. pork industry has not opposed the use of ethanol and the country’s goal of reducing its dependence on foreign oil, U.S. pork producers have paid a price, literally, in the form of much higher feed costs. Due mostly to those higher costs, pork producers since October 2007 have lost nearly $24 on each hog marketed, and the pork industry has lost more than $6 billion.

nppc.org

Source: newsroom - meattradenewsdaily.co.uk

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