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Corn prices concern livestock industry

by 5m Editor
13 February 2007, at 12:03pm

US - Not everyone is excited about rising corn prices. "Livestock producers have some concerns about the high prices. Last year corn was selling for $2 (a bushel). This year, it's $4," said Patrick Kirchhofer, manager of the Peoria County Farm Bureau.

The reason for corn's rise is the booming ethanol market. With 111 ethanol plants now operating in the United States and another 75 planned, there's a record amount of corn-based ethanol being produced, said the Washington, D.C-based Renewable Fuels Association.

Hog producers that rely on corn-based feeds are definitely feeling the pinch, said Tim Maiers, spokesman for the Illinois Pork Producers Association in Springfield.

"People anticipated corn prices would rise when more ethanol plants came online, but I don't think they realized it would happen so fast and that prices would stay up," he said.

Source: PJ Star

5m Editor