SC36

http://www.msnbc.msn.com/id/16876643/

Tyson warns on food versus fuel conflict

Tyson, the world's largest protein producer, on Monday warned that boosting US ethanol production would spill over into higher global food prices.

The US group said consumers would bear the brunt of domestic price increases being pushed through to compensate for the near-doubling of corn costs last year, spurred in part by the competing claim on the crop to make ethanol.

Food producers have expressed concern about the effect of ethanol-driven corn prices for months but calls for a food-versus-fuel debate have grown louder in the wake of last week's White House plan for a five-fold rise in renewable fuel production over the next decade.

However, Tyson executives said "this was not just a US phenomenon", with animal-feed prices being "reset throughout the world" to reflect higher demand.

Dick Bond, Tyson's president and chief executive, has already called on Washington to recognise the competing claims of the food and energy sectors when drawing up a proposed new farm bill. "If left unaddressed, the bigger long-term issue will be the availability of US and global grain for protein and other foods," he said on Monday.

"We fully support efforts toward renewable energy; however, as the food-versus-fuel debate unfolds, we must carefully consider the negative and unintended consequences of over-using grains."..............