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PR - The Economic Impact Of Ethanol Production On The South African Animal Feed Industry

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  • Strydom, D.B.
  • Taljaard, P.R.
  • Willemse, B.J.
  • Meyer, F.
  • Strauss, P.G.

Abstract

Biofuels are becoming an increasingly important source of energy globally. The international biofuels industry experienced tremendous industry growth mainly driven by: increased energy demand and more specific petroleum prices, reliability of traditional crude oil exporters along with political motives, adverse pollution affects (Methyl tertiary butyl ether - MTBE) and more specific, emission gases from fossil fuels leading to environmental pressure for the use of cleaner burning fuels. By-products such as Distillers Grains from ethanol production can be a substitute for numerous protein rich raw materials such as oilcakes in animal feed rations which result in relative price changes and changes in consumption patterns of these raw materials. The possible impact on the animal feed industry is analyzed by using the BFAP and APR models. The results indicate that numerous relative price changes take place along with various changes in raw material consumption and that the total animal feed costs decrease with 2%.

Suggested Citation

  • Strydom, D.B. & Taljaard, P.R. & Willemse, B.J. & Meyer, F. & Strauss, P.G., 2009. "PR - The Economic Impact Of Ethanol Production On The South African Animal Feed Industry," 17th Congress, Illinois State University, USA, July 19-24, 2009 345527, International Farm Management Association.
    • Handle: RePEc:ags:ifma09:345527
    DOI: 10.22004/ag.econ.345527
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    References listed on IDEAS

    as
    1. Hertel, Thomas W. & Tyner, Wallace E. & Birur, Dileep K., 2008. "Biofuels for all? Understanding the Global Impacts of Multinational Mandates," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6526, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Hertel, Thomas W. & Tyner, Wallace E. & Birur, Dileep K., 2008. "Biofuels for all? Understanding the Global Impacts of Multinational Mandates," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6526, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Meyer, Ferdinand H. & Strauss, P.G. & Funke, Thomas, 2008. "Modelling the impacts of macro-economic variables on the South African biofuels industry," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 47(3), pages 1-19, September.
    4. Birur, Dileep & Hertel, Thomas & Tyner, Wally, 2008. "Impact of Biofuel Production on World Agricultural Markets: A Computable General Equilibrium Analysis," GTAP Working Papers 2413, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
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