Ethanol Production and Feed Ingredient Prices Update

Beginning in 2002 the United States government encouraged the production of ethanol and other bio-fuels through a combination of tax benefits and direct subsidies. The Renewable Fuels legislation of 2005 required that gasoline in the U.S. contain increasing volumes of ethanol beginning in 2006. These volumes were required to increase from 4 billion gallons in 2006 to 7.5billion in 2012. As a result of these programs, ethanol production in the last 6 years has soared from 3.9 billion gallons in 2...005 to 13.2 billion gallons in 2010. It is possible that we will be producing 15.0 billion gallons by 2012.