October 11, 2006

US pork producers voice concerns over ethanol expansion

The US National Pork Producers Council is concerned that the American ethanol industry, currently expanding at a breakneck pace, would impact on the availability of grain to feed hogs.

US ethanol production is expected to expand 56 percent in the next 6 years, rising from 4.8 billion gallons a year to 7.5 billion gallons by 2012, according to the University of Minnesota

Council President Joy Philippi said he is worried reduced corn stocks would mean prices rising above US$4. If so, it would mean higher production costs and even grain shortages for hog producers.