2007 Conference Sessions
Impact of Ethanol on the Hereford Industry
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| Audio | |||
|---|---|---|---|
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| Presentation Slides | |||
| Kevin Good | 2.98 MB | Download | |
| Ron Plain | 1.60 MB | Download | |
| Kelly Bruns | 1.65 MB | Download | |
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Synopsis
Economists kicked off the third Young Guns Conference Aug. 23, 2007, at Harrah’s Hotel and Casino in North Kansas City, Mo., by discussing the impact ethanol production is having and is going to have on the cattle industry.
The discussion began with the presentation “The Cattle Industry…Now and Down the Road” by Kevin Good, Cattle-Faxmarket analyst and manager of corporate accounts. Good said the main difference in cattle prices today is corn.
Good showed how weather conditions and drought have changed during the last couple of years and explained how these elements have affected the amounts of corn produced. “We have to have some cooperation from Mother Nature,” Good said.
Good explained that every 30-35 years corn prices go into a new trading range that causes the corn prices to increase. “We believe that this is what has happened.”
Another economist who discussed the ethanol impact was Ron Plain, University of Missouri-Columbia Extension . “What is really driving the growth in ethanol is that gas is not cheap,” Plain said.
Plain described ethanol and corn production separately and explained what kind of effect the production of ethanol has on the livestock industry. “All ethanol does is a little bit of tinkering to the fuel supply, but it has a huge impact on the livestock industry.”
“As long as energy prices remain high, ethanol plants can outbid livestock for corn,” Plain said. “That’s going to present a challenge for the livestock industry.” As more and more corn is being used for ethanol production, there will be less and less to feed to livestock.
Kelly Bruns, South Dakota State University, explained how to understand by-product feeds and their management to ensure maximum quality grade and performance. Some of the benefits and concerns that were discussed included improved mixing and bunk management, and the variability of the by-product.
Bruns also explained marbling development and ways that growth has changed dramatically in the last 20 years. “The priority of tissue, marbling and back fat is important,” Bruns said. “We probably don’t manage cattle to the potential that they can be.”
The presentations were followed by a panel discussion with questions from attendees. The topics discussed ranged from the government’s role in ethanol production and the probability of importing corn from other countries, if there is a shortage, to branded beef and the Choice-Select spread.
For questions or more information, contact Amy Cowan at (816) 842-3757 or