The biofuels boom will pose an important challenge for livestock producers by driving up the cost of feed grains. But the long-term implications of this ethanol emphasis are far from certain and how livestock producers fare will depend heavily on the mindset they adopt. That was the perspective of Larry Martin, CEO of the George Morris Centre, and Brian Knudson, brand manager with Cargill, in a feed competitiveness session at the 2007 Banff Pork Seminar. Many important questions are unanswered, including whether ethanol production from corn and other feedgrains will be sustainable. Unknown breakthroughs could also shake-up the dynamics says Martin. He also states that byproducts from ethanol production have been touted as an alternative feed source, but that potential is limited. Also Martin says that many factors point to a sustained increase in biofuel production, including US government policies aimed at reducing reliance on foreign oil and reducing greenhouse gas emissions. Cargill’s Brian Knudson says that the emergence of biofuels is a dramatic paradigm shift for agriculture. Biofuels will have a huge impact on pork category and mindset will be critical for producers to recognize and prosper in the new environment. Focusing on nutrients has helped Cargill teams make better and faster decisions by having a clearer understanding of value, says Knudson. “Tomorrow there will be a new value base and the opportunities once again will lie in recognizing that.”