The demand problem for feed grains in Europe is pressuring regulators to reconsider at least the residue limits for GMO's in feed. Rumors already are stirring in the market.
Corrêa de Barros warned the EU Farm Council that "The current EU GM policy will cripple the EU livestock industry.
"Livestock producers in third countries will be able to use the GMO crops not yet approved in the EU to feed their animals and will increasingly sell their products of animal origin to EU consumers at a lower price compared with EU operators".
He stressed that the systematic slowdown of GM approvals in the EU combined with a strict 0-tolerance policy for the presence of non EU-approved materials already resulted in the loss of 4 million tonnes of CGF (Corn Gluten Feed) and DDGS (Dried Distillers Grains with Solubles) that the EU used to import for years from the US. [More]
The livestock industry worldwide is slowly rising to battle the huge increase in feed costs. Coupled with concerns about meat consumption in general (at least in developed countries) the tone of complaint is becoming steadily harsher.
As our own Steve Cornett pithily puts it:
This next farm bill will be critical, and the ethanolics could use the support of the environmental lobby, which enjoys the Times’ editorial ear. My money is still with the corn guys, despite the obvious problems delineated by the Times editorial and about a jillion cattle feeders.That this rhetoric ramp-up is occurring right when soy and wheat acres are being bid for makes me nervous about whether the now-standard fall price hike might be front-loading some of our best opportunities for 07 and 08 crops to right now.
More people are beginning to look at the science and wonder if ethanol is really a prudent approach to energy conservation. You get a different answer, of course, from the ethanol folks—but they must be worried about the momentum shift.
It strikes me as a little bit blind like a bat to argue that ethanol production isn’t affecting food prices, much less sport a headline like RFA’s “NEW REPORT: FOOD AND MEAT PROCESSORS USING "ETHANOL SMOKESCREEN"
Of course ethanol has increased corn prices, and of course that increases meat prices. Geez. As sure as the price of water affects the price of ice. As sure as the price of barbers affects the price of haircuts. As sure as How can you argue that? [More]
Matter of fact, I've got a call to make...