02/06/07 Biofuels worry livestock industry

American Rancher February 6, 2007 Several major livestock organizations have asked USDA to create a special group to study the impact of the biofuels industry on the livestock sector. Chris Galen, Vice President of Communications for the National Milk Producers Federation, says his group was one of those signing on to a letter sent to the USDA last month. Galen: "This is the recognition on the part of the livestock industry that the ethanol mandate and calls for expanding the use of corn based biofuels needs to examined from the livestock perspective and from what the cost is going to be not only for dairy producers and pork and beef producers, poultry producers, but ultimately there will be a cost to consumers when food prices go up, which they will, because of so much corn going into ethanol." The National Cattlemen's Beef Association also signed on to that letter to the USDA. At the NCBA convention this past week, it members called for transition to a market based approach to renewable energy production, which would help level the playing field for cattle producers and other feed grain users. For example the NCBA resolution supports "sunsetting" of fuel blending tax credits and tariffs on imported ethanol. The cattlemen also called for an emphasis on cellulosic fuel production which does not rely on feed grains. I'm Bob Hoff.