11/19/08 More Melamine Problems & Ethanol Squeeze

More Melamine Problems & Ethanol Squeeze plus Food Forethought. I'm Greg Martin with today's Northwest Report. The use of melamine as a food additive may have been going on for some time now in China. And even if there has not been a cover-up, it appears to have been kept a secret. The Hong Kong government now admits that melamine has seeped into large parts of China's food and feed industry  posing health hazards to consumers. Just this past week, a brand of chicken eggs from China's leading egg processor was removed from the shelves in some stores after Hong Kong food safety regulators found excessive levels of melamine in the eggs. There have been no reports of illness from the new contamination. Ethanol industry consolidation could accelerate next year as the industry is squeezed by falling fuel prices and volatile futures markets. Midwest ag bankers are starting to predict more ethanol plant bankruptcies next year. Renewable Fuels Association spokesman Matt Hartwig says predictions of as many as 40 plants may be overstated, but adds. HARTWIG: Obviously demand for fuel is down and when demand for gasoline is down, demand for ethanol will be down as well again because we are largely constrained by that arbitrary cap of 10% ethanol in every gallon. Now with today's Food Forethought, here's Lacy Gray. The future of biofuels sometimes reminds me of a chapter from the "Back to the Future" movie series; with Doc Brown taking off into the sunset in his byproduct fueled car. A byproduct fueled vehicle isn't farfetched anymore; in fact, it's downright plausible and inevitable. Researchers and scientists have been working diligently to encompass the full capacity and benefits of biotechnologies in regards to biofuels. Biocatalysts, which include yeasts and bacteria produced using biotechnology should soon make it possible to make ethanol from nearly any organic matter. The expansion of raw material use could then include an even larger variety of plants, grasses and even agricultural byproducts such as cornstalks. The result will be a new and improved biofuel that offers a better performance and fuel economy. America's farmers are working hand in hand with our nation's top companies and scientists to alleviate the world's fuel shortage. Thanks Lacy. That's today's Northwest Report. I'm Greg Martin on the Northwest Ag Information Network.