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US Industry Backs Petition to Relax Ethanol Mandate

by 5m Editor
28 April 2008, at 11:42am

US – The US poultry industry has backed a call from Texas Governor Rick Perry for a 50 per cent waiver from the federal renewable fuel standard (RFS) mandate for ethanol produced from grain.

The support comes from leading poultry producers and processors, Tyson Foods and Pilgrim's Pride.

Tyson Foods President and CEO Richard L. Bond said: "We applaud Governor Perry for his decision to petition the EPA for a partial waiver from the ethanol mandate.

"Something has to be done to address corn-based ethanol's detrimental impact on food prices and this is a good first step.

"As a major employer in Texas, with more than 10,000 Team Members, we appreciate Governor Perry’s efforts and hope other states will follow his lead.

"In addition, we hope Congress will also do the right thing by removing the tariff on imported, sugar-based ethanol and by reducing or eliminating the 51 cent per gallon federal tax credit for ethanol produced from corn in the US."

Lonnie 'Bo' Pilgrim from Pilgrim's Pride said: "I am proud to support Gov. Perry in his request for a 50 per cent waiver of the renewable fuel standard. Soaring feed-ingredient costs fueled by the federal government's ethanol mandate has created a crisis in our industry, the true effects of which are only just now beginning to be felt by consumers in Texas and other states in the form of higher food prices.

"These unprecedented increases for corn and soybean meal are expected to add billions of dollars of cost to our industry this year. We applaud Gov. Perry for his leadership on this critical issue and encourage other leaders in the public and private sectors to join in support."

5m Editor