Butterball cites ethanol policy in local job cuts
By Joanne Kelley, Rocky Mountain News (Contact)
Published June 24, 2008 at 9:10 p.m.
Butterball LLC said it will cut more than 200 jobs in Colorado this summer in response to the rising cost of turkey feed and government policies that promote corn- based ethanol as a fuel alternative.
The work force reduction will take effect in late August, with most of the jobs being eliminated at the processor's Longmont turkey plant and the others at its turkey-growing operations in the Weld County vicinity, the company said.
"We've been dealing with the rising cost of grain since 2007," said Michael Bliss, a vice president of processing operations for Raleigh, N.C.-based Butterball. "It's important Congress go back and re-evaluate ethanol mandates that were put in place."
The company said its feed costs have jumped $200 million in the past year because of government policies on ethanol production.
"Reducing placement and slaughter operations at the Longmont facility is, sadly, the most economically viable measure our company can take," Butterball CEO Keith Shoemaker said in a statement.
Butterball and other poultry processors have singled out ethanol policy as a culprit, saying it has driven up the price of livestock feed to levels that have eroded profit margins.
The Colorado Corn Growers Association's Mark Sponsler acknowledged that livestock producers face challenges in controlling their costs, particularly after decades of becoming "accustomed to an extremely cheap feed supply."
"There is no doubt it is an uncomfortable time for livestock operators who normally rely on corn for a chief feed ingredient," Sponsler said. "It's important to keep in mind that this (ethanol) is an infant industry. For the most part it's having a very positive effect."
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June 25, 2008
3:02 p.m.
Suggest removal
SacramentoE85 writes:
Wow, I thought that costs were up due to energy (particularly petroleum) costs! Instead, they have determined to put the blame squarely on ethanol? The addition of up to 9 billion gallons of ethanol in 2008 is keeping gasoline 50 cents LESS expensive per gallon. That reduction in energy costs should also be keeping food prices down (transport, delivery). Food companies are experiencing a temporary increase in feed costs, while farmers most of the time experience long-term low prices for their corn. Shame on the food companies and GMA for this blatant smear. These people are losing their jobs due to high energy costs, which ethanol is helping to offset.
June 27, 2008
7:31 a.m.
Suggest removal
rusty1351 writes:
If you are not sure if oil is the problem, how about this fact. In 1947 corn sold for $2.17 a bushel and oil sold for $2.17 a barrel. Now corn is $7 and bushel and oil $135 a barrel. An increase of 322% for corn and 6220% increase for oil. Who is causing the biggest problem oil industry or ethanol?