Just what are the current market conditions affecting the ethanol industry today? To answer this question, Chuck Zimmerman needed to go no further than the Novozymes booth during this year’s Fuel Ethanol Workshop where he had a conversation with Jack Rogers about current industry challenges. Rogers is the global marketing manager in charge of Novozymes bioenzymes portfolio. He noted that one of the challenges the ethanol industry is facing today includes a big dip in commodity prices so oil, corn and ethanol prices have come down dramatically.
“We also see the supply demand balance. It’s very delicate at this point so margins for the producers are certainly compressed. As we look toward the near term outlook, margins are going to be tight. There will be a big emphasis on efficiency for the plants,” explained Rogers.
Like a great company should, Novozymes is responding to the market changes with keeping their customers’ needs top of mind. One way Novozymes is doing business during this time of lower commodity prices is working the different channels whether it be governmental or straight talk with the consumer.
“Novozymes is certainly very active and dedicated in promoting the good messages we have with ethanol,” Rogers said. “So one of the key things we do want to do with ethanol is make sure that consumers understand the benefits. And when they do, we can actually grow the market. We’ve got a great product and the more we can grow the market the more room we can create for everyone and what we’re doing here.”
Novozymes is continually innovating the ethanol market. Rogers noted that going back to the aforementioned conditions, producers really have to find new ways to optimize using technologies and tools that weren’t before available. “What we’ve done is broaden our product portfolio to make sure we have products that are finetuned to whatever process conditions, to whatever performance and cost targets that our customers have.”
Learn more about how Novozymes is helping their customers stay profitable during all market conditions by listening to Chuck’s interview with Jack Rogers here: Interview with Jack Rogers, Novozymes
You can find photos from the 2016 FEW here: 2016 FEW Photo Album