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DDG and the beef industry
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<blockquote data-quote="somn" data-source="post: 316569" data-attributes="member: 3721"><p>I don't think it is going to help us much. Reduced bean production will surely make for higher meal prices for the poultry and hog industry. But just the same the more ethanol plants we have the more corn gets used. Everyones says yeah but with more ethanol plants come more ddgs for feed. Thats true but these ethanol companies are not as stupid as corn farmers they know what their cost of production is and I'm guessing they will not sell their product below production costs just because that is what the market will bear. They know the corn is to high priced for the feedlot man so that means we will buy those ddgs if they are slightly lower priced by feed value. Unlike the corn farmer who sell it for whatever they can get it for. Double edged sword if you ask me.</p></blockquote><p></p>
[QUOTE="somn, post: 316569, member: 3721"] I don't think it is going to help us much. Reduced bean production will surely make for higher meal prices for the poultry and hog industry. But just the same the more ethanol plants we have the more corn gets used. Everyones says yeah but with more ethanol plants come more ddgs for feed. Thats true but these ethanol companies are not as stupid as corn farmers they know what their cost of production is and I'm guessing they will not sell their product below production costs just because that is what the market will bear. They know the corn is to high priced for the feedlot man so that means we will buy those ddgs if they are slightly lower priced by feed value. Unlike the corn farmer who sell it for whatever they can get it for. Double edged sword if you ask me. [/QUOTE]
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