NPPC concerned about ethanol fever

The NPPC emphasised its concerns at an energy meeting sponsored by the 25x’25
Alliance, a group of mostly agriculture organisations, hoping to get 25% of the
nation’s energy from renewable resources by 2025.

Maize
availability
The council raised the issue of maize availability for
livestock feed, pointing out that the ethanol industry is projected to use more
than 5 billion bushels of maize once ethanol plants now under construction come
online. Speaking to those present, Joy Philippi, immediate past president of
NPPC, said, “Pork producers continue to have the jitters over the rapid
expansion of the maize-based ethanol industry and the challenges that expansion
presents to maintaining our competitiveness with domestic and international meat
protein competitors.” “Additionally, we are concerned about not having an
adequate transition period to adjust to the rapid expansion of the ethanol
industry.”

High demand
Also, said NPPC, the high
demand for maize has pushed the per-bushel price up to $4 from $2 last summer,
raising pork producers’ feed input costs to $65 per pig from $35.
With that
increase, pork production may need to decline by as much as 15% to allow the
industry to recoup higher production costs, according to a November 2006 study
by Iowa State University’s Center for Agricultural and Rural Development.

Related websites:
National Pork Producers Council (NPPC)

Iowa State University’s Center for Agricultural and Rural Development
(CARD)
25 x ’25 Alliance


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