US Surge Into Biofuels Opens Opportunity For Aust Beef

AUSTRALIA - The United States push into ethanol production, in lifting US corn prices, could create opportunities for Australia’s red meat industry says Rabobank's senior analyst Animal Proteins, Wendy Voss.
calendar icon 2 August 2007
clock icon 2 minute read
Higher meat prices and a larger than expected US herd sell-off have been two consequences of the US government’s commitment to the biofuel revolution as their fuel and feed industries go head to head for corn.

The US push into ethanol production, forcing up US feed grain prices, could create opportunities for Australia’s red meat industry Rabobank's senior analyst Animal Proteins, Wendy Voss, says.

She believes this push towards US ethanol production is driven by:
  • The US desire to have a “clean, green energy source
  • Their desire to be more self-sustainable instead of dependent on oil from politically unstable countries, and also
  • There is a general feeling of support for rural America.
The US Government is one of the world’s biggest supporters of the alternative fuel, committing 14.5 billion US dollars in a decade to support the burgeoning industry.

This includes an excise tax rebate of 51 US cents a gallon, conversion of petrol stations to biofuel and protection against cheaper South American sugar-cane based biofuel imports.

Ms Voss said there was a mandate for US consumers to use 7.5 billion gallons of biofuel annually by 2012, requiring 66 million tonnes of grain.

Source: North Queensland Register

The Emerging Threat Of Ethanol

Each year the world's dependance on energy grows and every second of it our energy sources are being depleted. The future is bio-diesel, only it has arrived too soon. The prescense of corn is beginning to dominate the farmers market as it's value sky-rockets. But what effects is this having on animal producers? Get the lo-down on the debate by clicking on our previous news items below.

2007-07-13 Synergy Between Livestock Producers and Ethanol Plants Needed
2007-07-10 Corn Prices Have Small Impact on Higher Food Costs, says AFB
2007-07-05 Growing bio-fuel demand underpinning higher agriculture prices
2007-07-02 Ethanol Co-Products: A Livestock Dish Of The Day
2007-06-25 Cattle Producers Urge Equal Opportunity Energy Policy
2007-06-15 NFU: Demand For Land To Remain Strong As Corn Fares Better Than Horn
2007-06-12 AMI Launch Web Site Calling for Balanced Food and Fuel Policy
2007-05-18 Study: Ethanol raises food costs

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