11/08/06 Cattle and Ethanol

With all the hype about ethanol powered fuels with all the hoop-la over how bio fuel will revolutionize farming communities there is one segment of agriculture that remains skeptical, and for a good reason. The livestock industry, notably beef and pork are dependant on corn to feed their animals and could be seriously impacted if ethanol ever becomes as mainstream as predicated. Cattle feeders in particular are frowning on the effects that ethanol production has already had on the price of feeder corn. Corn prices are still high despite a boomer crop, and when coupled with the .51 cent a gallon government subsidies it doesn't bode well to be a cattle feeder competing with ethanol. In fact Biodiesel could forever change the relationship between feeder calves and corn prices. Troy Marshall in a recent article in BEEF cow calf weekly stated that "it will be intriguing to see how the cow-calf segment adjust it's nutritional program" . Midwest cattlemen would say it is down right frightening, as they scramble to find with ethanol by products and other crops as a cost effective replacement feed . Meanwhile Brazil and China's beef industry continues to grow timed ironically with the uncertain future of US beef. .