U.S. corn growers say higher yields to boost ethanol

Reuters Africa
By Hugh Bronstein
Thu Jan 26, 2012 6:02pm GM

* Corn growers group projects huge yield gains by 2030
* Says corn use for ethanol to plateau, then increase

BUENOS AIRES, Jan 26 (Reuters) - The United States is headed for a corn output boom over the years ahead that will increase supplies available for ethanol production, the head of an industry chamber said on Thursday.

The robust growth of the ethanol sector in recent years has altered the structure of the U.S. corn market and ethanol producers now consume about 40 percent of the crop, sparking criticism that food supplies are at risk.

National Corn Growers Association Chief Executive Rick Tolman said corn use in ethanol will eventually rise from current 5.0 billion bushel although "there will be a plateau for a time."

"We've had reduced (corn) production in the last two years, but as we are able to increase production and work on new technology, I think it will continue to grow," he told reporters in Buenos Aires during a tour of Southern Cone farm areas.

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