California Poultry Federation
FOR IMMEDIATE RELEASE
Contact: Bill Mattos (209) 576-6355 [email protected]
California Poultry Federation commends Sen. Feinstein on bill lowering tariff on imported ethanol
June 6, 2008 Modesto, CA – – California Poultry Federation President Bill Mattos today commended California Sen. Dianne Feinstein for her introduction of legislation that would reduce the tariff on imported ethanol.
“The California poultry industry is being impacted by the rising cost of feed as over one-quarter of the U.S. corn crop is diverted from feed and food to the production of ethanol,” explained Mattos. “This diversion of corn from feed is raising the cost of production for California poultry producers and those cost increases will be felt by consumers. This legislation is an important first step in getting Congress to revisit food-to-fuel mandates and subsidies.”
The Imported Ethanol Parity Act would require the President to lower the 54-cent per gallon tariff on imported ethanol to a level at or below the per gallon subsidy for blending ethanol into gasoline. “The subsidy is 51-cents per gallon currently, but the recently-passed Farm Bill reduces the subsidy to 45-cents per gallon – a good first step,” said Mattos. “The legislation reduces the real trade barrier on clean and climate-friendly ethanol imports that currently gives gasoline imports a competitive advantage against ethanol imports.”
Mattos added, “It is important to keep in mind that these subsidies were primarily designed to boost the initial development in renewable fuels production. However, feedgrains-based ethanol production is now growing at an astounding pace. Passage of the Imported Ethanol Parity Act, which will reduce the ethanol import tariff by only 9 cents per gallon, certainly will not put the economic health of the ethanol industry in jeopardy. However, it is a welcome beginning toward a more open international market for ethanol.”
The CPF, headquartered in Modesto, is the trade association for California’s meat bird industry, representing chicken, turkey, duck, squab and game bird producers and processors.