December 27, 2006

US ethanol programme reduces corn exports to agri countries

Countries depending on the US for corn to feed their livestock industries stand to import less volume as the US diverts more of its corn harvest to its ethanol programme.

According to the Philippine Star daily, the expansion of the ethanol fuel industry in the US has mushroomed in the past three years and continues as most of America now mixes 10 percent ethanol with regular gasoline to increase overall fuel supplies.

American farmer James Andrew, speaking on forum dubbed as "Farmer Biotech Outreach: Strengthening the Competitiveness of Small Farmers" held recently at the Inter-Continental Hotel said that the US has invested in a 50-million gallon ethanol plant in 2003 which has returned 250 percent of the country's original investment in cash.

He added that the expansion of ethanol plants can outrun the country's available corn supply and American farmers are now exploring technologies to sustain corn planting, even eliminating the soybean rotation in order to meet the market demand.

In his paper titled "Biotech Crops in US Agriculture - Full Speed Ahead," Andrew emphasised to delegates from the Philippines, Thailand, Indonesia and Malaysia that US corn is becoming more expensive to developing countries, whom he advised "to see your local bids increase to meet the livestock producers and corn processors' needs in your own countries." He added that it is high time for the US to receive a decent return on their labour and investment after years of overproduction and utilisation.

Andrew encouraged farmers to grow genetically modified corn to considerably boost their production and meet their demand for commercial crops.

He said that American corn farmers think the biotechnology revolution will change the face and economics of agriculture worldwide, noting that 80 percent of corn and 90 percent of beans grown in the US are biotech crops.