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Demand For Corn Increasing Prices

by 5m Editor
30 April 2007, at 11:56am

US - The corn that is used to produce ethanol is the same corn that makes up a large part of the feed for cattle and hogs, and more importantly, poultry. The increased demand for the corn is resulting in higher feed costs, and in turn, higher meat prices.

Prices of sweet corn should not rise as a result of increased corn demand to make ethanol. Sweet corn is a different type of corn than what is used to make fuel.

So the nation's rush to find alternative fuels is hitting both farmers and shoppers in their pocketbooks.

Even if the price of meat increases, it could mean fewer profits for cattle farmers such as Montgomery County's Mike Henry. He is having trouble adjusting to feed costs he said have risen 35-40 percent in the past six months for his 700 cattle.

Even if the market price for meat rises, those are costs he can't pass on.

"We are price takers -- we don't set the price, unfortunately," Henry said.

Shoppers also are being affected.

They should continue to see moderate increases in prices for meat and poultry products during 2007 because of the higher feed costs, which are being combined with higher energy costs, said Jeff Helms, communications director for the Alabama Farmers Federation.

Source: MontgomeryAdvertiser

5m Editor