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Ethanol aid has feedlot farmers up in arms
25 Jul 2003
The Australian Lot Feeders Association has attacked the Federal Government's subsidies for ethanol production, arguing they will hurt rural beef and pork producers by driving up the price of feed grains. ALFA's Rob Sewell says the ethanol industry will be competing directly against the livestock industry for wheat and other grains.
A report commissioned by ALFA says the 38 cents-a-litre ethanol production grant is equivalent to a subsidy on the industry's grain and molasses inputs of $152 per tonne of sorghum and $98 per tonne of molasses. The livestock industry's demand for feedlot grains already outstrips supply.
Australian Pork Ltd said pork producers have already been hard hit by the drought's impact on grain prices and the subsidy will generate further competition for grain.
The feedlot industry argues that by helping one rural sector - wheat and sugarcane growers - the Government is distorting markets and hurting other rural producers.
Australian Financial Review, 25/7/03.
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