Green Plains to invest $400 million in business model revamp putting ethanol on backburner

In Illinois, Reuters reports that Green Plains has decided to drastically reorganize its business model so that ethanol becomes a low margin byproduct following a three-year, $400 million investment plan meant to change its focus to high-protein animal feed. With the company’s ethanol revenue last year down nearly 20% on the year, the lowest since 2010, its decision to pivot towards high quality rather than lower quality DDGS-based animal feed is meant to follow trends where animal diseases in key producing countries like China are concentrating livestock production. The first of the company’s 13 facilities will start producing the feed in February following a $35 million investment.