Implications of Growing Biofuels Demands on Northeast Livestock Feed Costs

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

No 37595, 2008 Conference, April 21-22, 2008, St. Louis, Missouri from NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management

Abstract: The relationship between complete-feed prices and commodity feedstock prices are estimated to analyze the effect of higher commodity prices on feed costs, with particular attention towards the price effects and substitutability of corn distillers dried grains with solubles (DDGS). Assuming the historical positive correlation between corn and DDGS prices, each $1/ton increase in the price of corn increases per ton feed costs between $0.45 and $0.67 across livestock sectors. A negative price correlation would offset some of the cost increases, but under most scenarios feed costs are expected to be at or above those experienced in 2007.

Keywords: Agricultural; Finance (search for similar items in EconPapers)
Pages: 19
Date: 2008-04
New Economics Papers: this item is included in nep-agr
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Citations: View citations in EconPapers (1)

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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 (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:nccest:37595

DOI: 10.22004/ag.econ.37595

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