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July 17, 2012 | By Elise Schafer
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Feed Industry Demands Ethanol Policy Flexibility

Corn supply tightens while EPA gives higher ethanol blends the green light

Phil Greene of Foster Farms gave his testimony on behalf of AFIA in September 2011. Since then with ethanol they've removed the tariff and the subsidies but they maintained the mandates and the situations we were concerned with last year as far as feed shortages, it occurred last year making it a very difficult year for the livestock industry, but this year looks like it'll be a total disaster for the livestock industry.

It's this dependency we have, the drought is a naturally occurring event that will happen periodically, but the government has set up a situation where all of the first corn has to go to ethanol and whatever's leftover has to go to feeding livestock and people.

Foster Farms and the livestock industry now has to compete against a very speculative marketplace, where 10 years ago you may have seen a price range of $1.80 to 2.50 in a year for corn, and last week alone corn went from 6.79 to 7.76, so we saw almost a dollar movement in one week. We didn't used to see that in a year and this is at significantly higher levels, so what that does is make it virtually impossible for all but the luckiest or best to work their ways through this market. The commodity markets are moving so fast and they're so volatile, and the dairy, poultry, beef and pork markets are not nearly as

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