Implications of Growing Biofuels Demands on Northeast Livestock Feed Costs

Todd Schmit, Leslie J. Verteramo and William G. Tomek

No 127011, Working Papers from Cornell University, Department of Applied Economics and Management

Abstract: The relationship between complete-feed prices and ingredient prices are estimated to analyze the effect of higher commodity prices on feed costs, with particular attention to the substitutability of corn distillers dried grains with solubles (DDGS). Using an historical positive price correlation between corn and DDGS, each $1/ton increase in the price of corn increases feed costs between $0.45 and $0.59 per ton across livestock sectors. Assuming a negative long-run price correlation reduces these marginal feed costs to between $0.11 and $0.36. Overall, DDGS cost savings are relatively limited and insufficient to offset the impact of other higher-priced feedstocks.

Keywords: Livestock Production/Industries; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Pages: 31
Date: 2007
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https://ageconsearch.umn.edu/record/127011/files/Cornell_Dyson_wp0710.pdf (application/pdf)

Related works:
Journal Article: Implications of Growing Biofuel Demands on Northeast Livestock Feed Costs (2009)
Journal Article: Implications of Growing Biofuel Demands on Northeast Livestock Feed Costs (2009)
Working Paper: Implications of Growing Biofuels Demands on Northeast Livestock Feed Costs (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:cudawp:127011

DOI: 10.22004/ag.econ.127011

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