Center for Advanced BioEnergy Research, University of Illinois at Urbana-Champaign

Monday, December 21, 2009

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Dec 15, 2009 (The Times-News - McClatchy-Tribune Information Services via COMTEX) -- Ethanol production more than doubled feed costs for livestock producers in the United States between 2006 and 2008, according to a report released Monday by the Government Accountability Office.

Dairymen and beef producers have long argued that skyrocketing feed costs were largely attributed to increased ethanol production. However, the report by the accountability office is the first government report to support livestock producers' allegations that ethanol was undercutting other agricultural sectors.

"It's been one of the assumptions we have always had that ethanol has negatively impacted feed prices for our producers," said Bob Naerebout, executive director of the Idaho Dairymen's Association. "Anytime you create false demand for a product there is going to be negative impacts on other markets."

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