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Impact of the Ethanol Boom on Livestock and Dairy Industries: What Are They Going to Eat?

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  • Anderson, David
  • Anderson, John D.
  • Sawyer, Jason

Abstract

Increased demand for corn for ethanol production has helped push grain prices to record levels. This has increased livestock production costs, and producers have responded with changes to production systems. This paper explores the degree to which costs can be mitigated with alternative feeds, the effect this might have on physical performance, and the impact of alternative feeds on the competitive position of different species.

Suggested Citation

  • Anderson, David & Anderson, John D. & Sawyer, Jason, 2008. "Impact of the Ethanol Boom on Livestock and Dairy Industries: What Are They Going to Eat?," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(2), pages 573-579, August.
    • Handle: RePEc:cup:jagaec:v:40:y:2008:i:02:p:573-579_02
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    References listed on IDEAS

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    1. Anderson, John D. & Zeuli, Kimberly A., 2001. "The Revenue Risk Of Value-Based Pricing For Fed Cattle: A Simulation Of Grid Vs. Average Pricing," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 4(3), pages 1-12.
    2. Richardson, James W. & Outlaw, Joe L. & Anderson, David P. & Sartwelle, James D., III & Feldman, Paul A. & Schumann, Keith D. & Klose, Steven L. & Schwart, Robert B., Jr. & Womack, Abner W., 2001. "Representative Farms Economic Outlook for the December 2003 FAPRI/AFPC Baseline," Working Papers 42720, Texas A&M University, Agricultural and Food Policy Center.
    3. Richardson, James W. & Outlaw, Joe L. & Knapek, George M. & Raulston, J. Marc & Herbst, Brian K. & Fumasi, Roland J. & Anderson, David P. & Bryant, Henry L. & Klose, Steven L. & Zimmel, Peter, 2007. "Representative Farms Economic Outlook for the December 2007 FAPRI/AFPC Baseline," Working Papers 37977, Texas A&M University, Agricultural and Food Policy Center.
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    Citations

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    Cited by:

    1. Mallory, Mindy L. & Irwin, Scott H. & Hayes, Dermot J., 2012. "How market efficiency and the theory of storage link corn and ethanol markets," Energy Economics, Elsevier, vol. 34(6), pages 2157-2166.
    2. da Silveira, Rodrigo Lanna F. & Mattos, Fabio L., 2015. "Price And Volatility Transmission In Livestock And Grain Markets: Examining The Effect Of Increasing Ethanol Production Across Countries," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205684, Agricultural and Applied Economics Association.
    3. Zhu, Xueqin & Yan, Shiyu & Smeets, Edward & van Berkum, Siemen, 2017. "How to measure greenhouse gas emissions by fuel type for binary sustainability standards: Average or Marginal emissions? An example of fertilizer use and corn ethanol," Discussion Papers 2017/3, Norwegian School of Economics, Department of Business and Management Science.
    4. Zhou, Wei & Babcock, Bruce A., 2014. "Pricing RINs and Corn in a Competitive Storage Model," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170581, Agricultural and Applied Economics Association.
    5. Anna Andersone & Sarmite Janceva & Liga Lauberte & Natalija Zaharova & Mihail Chervenkov & Vilhelmine Jurkjane & Lilija Jashina & Gints Rieksts & Galina Telysheva, 2023. "Granulated Animal Feed and Fuel Based on Sea Buckthorn Agro-Waste Biomass for Sustainable Berry Production," Sustainability, MDPI, vol. 15(14), pages 1-19, July.
    6. Tejeda, Hernan A., 2012. "Time-Varying Price Interactions and Risk Management in Livestock Feed Markets – Determining the Ethanol Surge Effect," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124956, Agricultural and Applied Economics Association.
    7. Bhattacharya, Suparna & Azzam, Azzeddine M. & Mark, Darrell R., 2009. "Ethanol and Meat in the U.S.: A Multi-Market Analysis," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49371, Agricultural and Applied Economics Association.
    8. Bastianin, Andrea & Galeotti, Marzio & Manera, Matteo, 2016. "Ethanol and field crops: Is there a price connection?," Food Policy, Elsevier, vol. 63(C), pages 53-61.
    9. Lemus, David Magaña & Bessler, David A., 2014. "Price Dynamics in Agricultural Markets: Relationships between the U.S. and Mexico," 88th Annual Conference, April 9-11, 2014, AgroParisTech, Paris, France 169736, Agricultural Economics Society.
    10. Johnson, Matthew & Yu, T. Edward & Griffith, Andrew P. & Jensen, Kimberly L. & Cho, Seong-Hoon, 2015. "Regional Dynamic Price Relationships between Distillers Dried Grains and Feed Grains," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196900, Southern Agricultural Economics Association.
    11. Wright, Andrew P. & Mitchell, Donna & Hudson, Darren, 2012. "An Estimation of the Demand for Dried Distiller Grains by the Cattle Feeding Industry: A Combination of Survey Methods and Market Projections," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119947, Southern Agricultural Economics Association.
    12. Pozo, Veronica F. & Schroeder, Ted C., 2012. "Price and Volatility Spillover between Livestock and Related Commodity Markets," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124798, Agricultural and Applied Economics Association.
    13. Hao, Na & Colson, Gregory & Seong, Byeongchan & Park, Cheolwoo & Wetzstein, Michael, 2015. "Drought, ethanol, and livestock," Energy Economics, Elsevier, vol. 49(C), pages 301-307.
    14. Mallory, Mindy L. & Irwin, Scott H. & Hayes, Dermot J., 2012. "How Market Efficiency and the Theory of Storage Link Corn and Ethanol Markets Energy Economics," ISU General Staff Papers 201211010700001537, Iowa State University, Department of Economics.

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    More about this item

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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