Ethanol production to have further impact on poultry industry
The poultry industry may feel further impact from
increased production of ethanol next year, particularly in the US, as more corn
is diverted away from feed production.
Speakers at the recent Grain Forecast and Economic Outlook Conference,
sponsored by the US
Poultry & Egg Association
, commented that growth in the ethanol industry
would have repercussions for animal agriculture.
The Renewable Fuel
reports that there are 97 ethanol plants across the US, with
another 62 under construction and yet another 135 proposed. Current ethanol
production capacity is 5.08 billion gallons a year, which may increase to 8.7
billion gallons a year with the capacity under construction.
At the conference, Kurt Collins of Brock Associates
pointed out that ethanol now accounts for
nearly 21 percent of corn production, whereas five years ago it accounted for
only 7 percent.
Increased demand for corn for use in ethanol production has also led to an
increase in the price of corn, which has reached a 10-year high.
Collins said the profit per acre for corn in 2006 is at $175 per acre,
versus around $48 per acre for soybeans.
that the rising cost of corn, which is used in feed, may also trigger an
increase in price of various agricultural commodities, including poultry, beef,
pork and dairy products.
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