WASHINGTON — Inflation is quickly spreading from the energy market into the broader economy, and the situation may be even more challenging for meat and poultry producers, which faced a 41.8% increase in prepared animal feeds during the 12 months ending in July, according to a release from the National Turkey Federation, the American Meat Institute and the National Chicken Council. Representatives from those groups issued another call to Congress to reduce or eliminate ethanol mandates, which have helped push corn prices to record levels.
“Today's Producer Price Index increase once again confirms that the government's decision to convert a third of our corn crop into ethanol continues to drive up production costs for meat and poultry products and is foisting a greater burden on the pocketbooks of consumers,” said J. Patrick Boyle, president and chief executive officer of AMI. “Ethanol policies have already contributed to prepared animal feed prices climbing a whopping [41.8%] over the past year. Consumers should be forewarned that this is just the beginning of higher prices for meat and poultry, unless Congress changes the law.”
Wholesale prices paid by American businesses rose 1.2% in July, according to a report issued last week by the U.S. Department of Labor, and the annual Producer Price Index for finished goods rose 9.8% in the 12 months ending in July, representing the sharpest increase in 27 years.