Pork council concerned about ethanol blend rate decision
The United States National Pork Producers Council (NPPC) has issued a press release voicing its concern about the effecton America's pork producers of raising to 15% the amount of corn ethanol that can be blended into gasoline.
The decision to increase the corn ethanol amount was made public on Wednesday, October 14, and was communicated by the US Environmental Protection Agency.
The NPPC said it is “withholding comment on raising the blend rate to E15 from its current E10 until we can consult with our economists. But any upward pressure on corn prices will have a negative effect on producers.”
Corn and hog raising prices up
The press release continued: “Given that the US Department of Agriculture's Oct. 8 crop report revised down the expected yield and ending stocks of corn, we're already seeing corn prices and the cost of raising a hog heading up.
The NPPC said not to want a repeat of a couple of years ago when, due mostly to high feed-grain prices, pork producers lost an average of almost $24 a hog from October 2007 through March 2010, and the industry lost nearly $6 billion.
According to the council, “family hog farms went out of business during that time, and many producers reduced the size of their herds.”
• National Pork Producers Council (NPPC)
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