Feeding Cost of Corn

More then half the corn produced in the U.S. is used to feed poultry and livestock.

"Field corn is the predominant corn type grown in the U.S., and it is primarily used for animal feed. Currently, less than 10 percent of the U.S. field corn crop is used for direct domestic human consumption in corn-based foods such as corn meal, corn starch, and corn flakes, while the remainder is used for animal feed, exports, ethanol production, seed, and industrial uses.

Given that livestock feed rations traditionally contain a large amount of corn, a bigger impact would be expected in meat and poultry prices due to higher feed costs than in other food products. Currently, about 55 percent of corn produced in the U.S. is used as animal feed for livestock and poultry.

Since more than half the corn produced is used to feed poultry and livestock, any increase in demand for corn will increase the cost to feed poultry and livestock. These cost can either be passed onto consumers as an increase in price, which will decrease demand for poultry and livestock, or the extra cost will decrease the potential profit margins for the poultry and livestock business."

Source:http://www.ers.usda.gov/AmberWaves/February08/Features/CornPrices.htm - (edit / improve)