Before a capacity audience, two agricultural economists discussed the Renewable Fuels Standard waiver for ethanol and the outlook for chicken and competing meats at the National Chicken Council’s 58th Annual Conference held this week in Washington, D.C.
Dr. Wallace E. Tyner, professor, department of agricultural economics at Purdue University, spoke on the impact of the drought on the agricultural sector; other sectors, such as the food sector that uses corn starch, corn flour, or corn directly; and the economy as a whole. He also discussed in detail the possible impact of a partial waiver of the Renewable Fuel Standard for corn ethanol.
Corn prices are substantially higher than a normal year and losses are mounting to tens of billions of dollars, Tyner said. As livestock producers face these substantially higher feed costs, Tyner pointed out that much of those increased costs cannot be passed onto consumers in the short run. However, ultimately, consumers will face higher prices for livestock products and other products that use corn as well as higher fuel costs.
Dr. Ronald L. Plain, professor and extension economist, department of agricultural and applied economics, University of Missouri-Columbia, presented information on the production, price, and consumption outlook for the broiler, turkey, beef, and pork situation as affected by the recent drought and higher feed prices.
PowerPoint presentations for Drs. Tyner and Plain are available here.
