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2015 was a difficult one for US ethanol producers, prices came down from an eight year high in 2014 to a near-eleven year low in January of 2016. As with any market, when times are hard, it’s essential that players can adapt and evolve to keep business alive. So, eyes turn to export opportunities and to five countries in particular. Traditionally, once supplies reach around 20 million gallons, cargoes start getting booked. Supplies are currently at around 23 million gallons. With sustained record high production levels putting downwards pressure on domestic prices, at the most recent National Ethanol Conference in New Orleans, US ethanol industry participants were readily eyeing export opportunities to provide the market with a much-needed boost in the form of buyers, and ultimately, revenue. For both ethanol and biodiesel, rhetoric around the industry has shifted from a nearly one-sided focus on the Environmental Protection Agency (EPA) and Renewable Fuel Standard (RFS) to now touting the benefits of other biofuels. For biodiesel, it was touting its ability to reduce carbon emissions; for ethanol, it’s the benefits for octane-boosting. The change is due, partly, to the fact that the new blending mandates are in place now, giving some stability and allowing both industries to focus on other aspects. However, the change in sentiment is also due to the fact that both fuels are at a disadvantage economically compared to fossil fuels. So, as a way to address this evolving landscape, the industry is lining up five countries as key to the US export market: Brazil, the Philippines, China, India and Mexico. As the largest buyer of US product, Canada is already a well-established market, requiring less business development. Blog entry continues below:

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