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US Pork Producers request RFS waiver

The National Pork Producers Council in the US will request that the federally-mandated target for corn-based ethanol production be halved.

EPA Waiver
The NPPC will urge the Environmental Protection Agency that the state of Texas be granted a waiver of the Renewable Fuels Standard and that the amount of biofuels to be produced in 2008 be reduced to 4.5 billion gallons from 9 billion gallons. The EPA has until July 24th to make a decision.

NPPC says pork producers have been feeling the pinch of higher prices for feed, which accounts for 70 percent of the cost of raising a hog. According to NPPC, increased global demand for crops, drought conditions in parts of the world and the RFS requirement have fueled even higher grain prices.

Expected shortfall
Recent flooding has also reduced the estimated average yield per acre. The expected shortfall along with a mandated 38 percent increase in ethanol production over last year has producers very concerned about having physical access to corn to feed their livestock.

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