Australian feedlot operators claim E3 artificially pushing up grain prices

In Australia, cattle feedlot operators are concerned that Queensland’s 3% ethanol mandate will push up prices for feed during years of poor cereals harvests considering the inelastic demand for grain to produce fuel. The industry’s association has referred to “artificial inflationary pressures” on grain prices due to demand from ethanol producers which it says is unfair competition for grain because of the mandated market. Feed inputs are the most expensive part of the cattle feeding industry.