CoBank report says ethanol industry will soon face worsening margins that could lead to consolidation

August 17, 2017 |

In Colorado, 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.

The report, “Ethanol’s Growth Path: Output and Export Uncertainties Both Rising,” outlines how an ethanol market fueled by corn prices at multi-year lows coupled with reinvestment into production capacity will push supply past demand growth.

Category: Fuels

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