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 Association 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.
Tyson Foods has warned 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.

Editor WorldPoultry

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