WINNIPEG, Manitoba (Reuters) - Ethanol production has boosted the prices of grains that Canadian farmers buy to raise cattle and pigs, and Ottawa should curb or eliminate its support for the industry, an agriculture research organization said on Tuesday.
But a leading biofuels group said the report wildly overstated ethanol's impact on grain prices.
The report conducted by the George Morris Centre and paid for by livestock and meat groups said while many factors influence grain and livestock prices, Canadian ethanol production has boosted feed grains by C$15 to C$20 per ton in eastern Canada and C$5 to C$10 per ton in western Canada.