Thursday, August 28, 2008

Controversy in US bio-fuel policy

With the rising crude oil price, US bio-fuel development entered the hyper-growth 'golden period'. However this energy replacement policy has been drawing controversy with the Texas state government who showed strong unhappiness recently.

According to Bush administration government's plan, bio-fuel usage this year must reach 34 billion liters and should increase yearly. But Texas state government strongly points out that the strong push for bio-fuel development is a big mistake because one third of America's bio-fuel comes from the transformation of cereal products. Vigorous development of bio-fuel will led to a big increment in grain prices directly impacting the Texas state livestock and poultry industry. US largest chicken meat producer Pilgrim's Pride says that poultry feed expenditure has increased by 900 million US dollars this year.

In response to the Texas government statement, United States Environmental Protection Agency says that developing bio-fuel will not cause economic harm to other industries manufacturing, the US government energy plan will not change. But Texas state governor Rick Perry says that the argument is not acceptable and some of the Texas state livestock and poultry industry people will continue with their petition with the congress and the next government to urge the correction of the irresponsible policy.

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