Impact of produced bio-fuel on poultry feed market
2009
Hamed, A.F. | Soliman, I | Amer, M,G | Noreldeen, A.M.E.
Whereas Poultry feed represents around 65-70% of the operating costs of such industry, yellow corn soybean meal represent 60-70% and 15-20% of the feed components. In addition Most of yellow corn and soybean consumed for poultry feeding are imported. Therefore, the poultry feed mix and consequently the poultry feed products suppose to he highly affected by the world market price of both ingredients. Accordingly the objective of the study focuses upon the impact of the newly growing demand for yellow corn and soybean to produce excess quantities of ethanol and diesel fuel on the world market prices of both crops. The major results showed that the annual growth in the production of both concerned crops were world-wide slow and was mainly due to slightly growing crop area, rather than the yield. On other hand there was excess increase in consumption of bio-fuel. The result was rapid growth in price of both yellow corn and soybean. More than 90% of the increase in the world price of yellow corn was due to expansion in ethanol production and about 40% of the increase in soybean world price was due to expansion in diesel fuel production. Expansion in bio-fuel consumption is mainly due to the subsidy provided to its price by the major produced countries, i.e USA, P.R. China and Brazil. It is recommended that the developing countries, in particular the Arab countries should cooperate in preventing the bio-fuel price subsidy policy which is practiced by the major countries production bio-fuel. This policy violates the WTO legislations Economic integration among Arab countries that have comparative advantage in such crops, particularly, Sudan.
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