While reading the news over the past few days, I have seen a trend that I find very alarming. The price of poultry is on the rise. The push for Ethanol fuels is raising the prices for corn [Source: Gas 7 Grain prices plunge…]. And the rise in corn prices has caused several big, and not so big poultry farms to close their doors or file for bankruptcy.
The latest is Pilgrim’s pride. It is now lining up to do a $450 million Chapter 11 exit. They site raising grain costs as the reason for profit losses and the need to file Chapter 11 bankruptcy.
A New Oxford, Pennsylvania turkey processing owner, sold his business to Hain Clestial Group Inc, and was quoted as saying. “The current operating environment is among the most difficult I’ve seen in my 27 years in this business,” Rivers said on a May 5 conference call with analysts. “The federal government has helped spark a growing worldwide food crisis by mandating corn-based ethanol production at the expense of affordable food.” [Source: Pilgrim’s Pride Seeks Bankruptcy…]
On a local level, a Utah turkey plant closed it doors until March of 2009, laying off 400 employees. The reason for the closure was stated as being the rise of a bushel of corn from $2.25 to $8.00.
On a side note, one of the companies that is using the corn to produce ethanol (Verasun Energy) has also filed for bankruptcy.
In my opinion, this is a perfect example of how the federal government can mess up an industry and the lives of its citizens. Because of the push (and subsidies) for producing Ethanol Fuels the demand for corn exceeded the supply. Making it hard for poultry farmers to keep in business. This is just one example of when the fight to save the Earth becomes more important than the people who are currently living on it.
Lets give three cheers for Government regulation…. Lets see how funny it is when poultry is only affordable to the upper class (those being taxed for the poor), and those who are on government welfare programs (those getting free money from the upper class). Bottom line, the middle class will be left out.
As an interesting side now. Did you know that Ethanol uses 29% more energy to produce, than is generated?