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News and analysis on the global poultry
and animal feed industries.
on May 22, 2008

Ethanol to have protracted effect

High demand for corn and soybeans keeps prices high

Demand from the growing ethanol industry will keep corn and soybean prices at high levels for years to come, depressing livestock production and increasing consumer prices, the chief economist at the US department of agriculture has told the American Congress. Joseph Glauber said corn prices were likely to rise again in 2008-09. Demand is expected to remain strong, supported by expanding use for ethanol. Continued expansion of biofuel production will probably maintain corn and soybean prices at historically high levels. Livestock producers will adjust to the increase in feed costs by reducing production, leading to higher retail prices for beef and pork in the longer term.
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