Increase in Ethanol Production Likely to Outpace Near-Term Demand

Output growth expected to exceed domestic and export demand for U.S. ethanol as producers reinvest strong 2016 profits into facilities and additional production capacity

DENVER (August 17, 2017) — According to a new report from CoBank’s Knowledge Exchange Division, the ethanol market will soon face worsening slim-to-negative profit margins, which could potentially push the industry toward consolidation. However, producers that are well-capitalized with strong balance sheets and cash reserves will be in the best position to weather the softening market. 

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Media Contacts

Julie Davis

Dave Harding
Knowledge Exchange