Ethanol Production May Shift Livestock Production

September 6, 2006 — 

Douglas Tiffany, research economist and research fellow in the Department of Applied Economics at the University of Minnesota, predicts that the rapid upsurge in the development of the biofuel industry will lead to a redistribution of livestock production in North America.

Promotion of the biofuels industry as a result of recent U.S. energy policies has resulted in concentration of production facilities in close proximity to large grain production areas in the U.S. and Canada. Tiffany speculates that this may lead to increases in corn prices and decreases in stocks available for use in livestock feeds.

Nebraska Governor Dave Heineman has proclaimed September Renewable Fuels Awareness Month in recognition of the rapid growth of that state's ethanol production industry. There are currently 12 ethanol plants operating in the state with an additional 10 under construction. Gov. Heineman estimates that two-thirds of the state's corn crop could be used in ethanol production within the next five years.

Sources:
Brownfield, Ag News for America

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