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AMI: Reliance on corn-based ethanol links food prices to fuel prices

May 8, 2008

Mandates and subsidies have a "profound impact" on meat and poultry industry


The mandate by Congress to use a key food ingredient as the dominant input for biofuels has inextricably coupled food to fuel prices, driving up costs for consumers and affecting the economy, said AMI President and CEO J. Patrick Boyle in testimony submitted to the House Energy and Commerce Committee Subcommittee on Energy and Air Quality. Boyle said that the goal of energy security is commendable and should be considered in relative context to risk posed to domestic and international food security.  Boyle pointed out that the The Energy Independence and Security Act of 2007 (EISA), its predecessor - the Energy Policy Act of 2005 (EPAC), and existing biofuel subsidies and trade protections have concentrated the adverse impacts on animal agriculture producers and consumers' food budgets.  Boyle pointed out that corn is one of the largest components in the diets of livestock and poultry.  Swine rations often contain about 60-85 percent corn, poultry rations contain about 65-75 percent and beef animals often have diets averaging 35 to 65 percent shell corn - although some producers will feed 100 percent corn to beef animals as either shell corn, flaked, or silage.

 American Meat Institute

Washington, D.C.


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