Registration is open for the Nebraska Ethanol Emerging Issues Forum April 13-14 in LaVista, Nebraska.
Emerging issues on the agenda this year include Policy Prospects Under the Trump Administration, RINs and the Point of Obligation, Policy Impacts on Exports, Ethanol Marketing Challenges, Protein Formulations and Bio-Products and much more.
Undergraduate and graduate students can apply for a scholarship to cover their registration to the forum. More information and registration here.
A new report from the Renewable Fuels Association (RFA) shows that U.S. exports of the ethanol co-product distillers grains (DG) were lower last year, mainly due to a significant drop in exports to China.
Exports of the high protein co-product of dry mill ethanol production used to feed livestock and poultry totaled 11.48 million metric tons (MMT) in 2016, down 10 percent from 2015’s record-high but still the second-highest on record, according to the report. While China remained the leading destination for U.S. distillers grains, exports to that country dropped 63 percent compared to 2015 as anti-dumping and countervailing duties against U.S. product were implemented.
“Distillers grains and other co-products have become an enormously important component of the global feed market. This report underscores that our co-products are in high demand in every corner of the world,” said Renewable Fuels Association President and CEO Bob Dinneen. “Unfortunately, we saw a slight downturn in total exports in 2016 because of China’s protectionist actions to shut out U.S. distillers grains. Last week, RFA and our partnering organizations sent a letter to President Trump, alerting him to China’s unfair and illegitimate trade barriers, and urging the incoming U.S. Trade Representative to address the issue. We remain concerned with China’s actions and look forward to the administration’s response to ensure free and fair trade between our countries.”
One out of every three tons of DG produced in the United States last year shipped to 50 foreign markets, with Mexico, Vietnam and South Korea, Turkey, and Thailand growing by a combined 2.06 MMT in 2016 — equivalent to the annual DG production of 10 average-sized ethanol plants.
Commentary by Chris Novak, Chief Executive Officer, National Corn Growers Association
Growth Energy and its members met last week in Miami, Florida for their annual leadership conference. Next week, the Renewable Fuels Association (RFA) will gather in San Diego, California for their National Ethanol Conference – and in less than a month, the American Coalition for Ethanol (ACE) will host its annual Fly-In in Washington D.C. Three different ethanol associations, holding three different meetings – each vital to our collective success. In the midst of these meetings, it’s a good time to pause and reflect on corn and ethanol’s shared history – and to consider what opportunities and challenges lie ahead.
For more than twenty years, the National Corn Growers Association (NCGA) and its state affiliates have worked side by side with the ethanol industry to bring ethanol-blended fuels to the marketplace. In so doing, the production of fuel ethanol has contributed significantly to our nation’s economy in terms of job creation, tax revenues and energy independence. At last check, 214 biorefineries in 29 states supported nearly 360,000 jobs and displaced 527 million barrels of foreign oil keeping $26 billion in the U.S. economy. That’s something to celebrate.
Record high production of ethanol and biodiesel in 2016 continued to power the rural Iowa economy engine despite another challenging year, according to the latest economic impact study commissioned by the Iowa Renewable Fuels Association (IRFA).
“The environment facing Iowa’s biodiesel industry was more favorable than that experienced by ethanol producers,” said study author John Urbanchuk, ABF Economics. “Both the ethanol and biodiesel industry continued to benefit from a diversification of feedstocks and co-products. Combined, these activities make a significant contribution to the Iowa economy.”
The study found that biofuels production supported more than 42,000 jobs throughout the entire Iowa economy, generated about $2.3 billion in household income for Iowans, and accounted for roughly $4.7 billion, or 3.5 percent, of Iowa GDP.
Rick Schwarck, Absolute Energy, presents Growth Energy award to Tom Vilsack
“We are thrilled to recognize Secretary Vilsack with the America’s Fuel Award for his remarkable commitment to the nation’s most successful energy policy, the Renewable Fuel Standard. We thank Secretary Vilsack for his unwavering dedication to the growth and success of the American ethanol industry throughout his time as Secretary of Agriculture and Governor of Iowa,” said Emily Skor, Growth Energy CEO.
Past winners include Growth Energy Co-chairman Tom Buis, Gov. Terry Branstad, retired Four Star General, Wesley Clark, and Richard Childress of Richard Childress Racing. The organization held its eighth annual Executive Leadership Conference last week in Miami.
Members of the National Corn Growers Association (NCGA) Ethanol Action Team (ETHAT) were recently in Savannah, Georgia to talk about expanding demand for corn ethanol.
The agenda covered topics ranging from fuel dispenser infrastructure to sports marketing sponsorships, according to ETHAT Chair Paul Jeschke, who noted that there is a lot of excitement over the Trump administration’s stated support for the RFS.
Chuck Studer of John Deere reported to the committee about the Ag Auto Ethanol Working Group’s latest efforts to find common ground on octane with automakers under the Trump Administration. They also heard an update on Growth Energy’s E15 branding research process and Prime the Pump’s efforts to promote E15 and higher ethanol blended fuels in local markets.
Since ETHAT is assuming oversight of NCGA’s sports marketing programs, the group also received an update on NASCAR and NCGA’s newly launched sponsorship with the Renewable Fuels Association of the Crappie Masters Tournament Trail.
USDA’s February World Agricultural Supply and Demand Estimates (WASDE) report shows an increase in corn use for ethanol this marketing year.
This month’s 2016/17 U.S. corn outlook is for increased food, seed and industrial (FSI) use and reduced stocks. Corn used to produce ethanol is raised 25 million bushels to 5,350 million based on the most recent data from the Grain Crushings and Co-Products Production report, and strong pace of weekly ethanol production during January as indicated by Energy Information Administration (EIA) data. Non-ethanol FSI is raised 10 million bushels. Corn ending stocks are lowered 35 million bushels from last month. The projected range for the season-average corn price received by producers is narrowed 10 cents on each end to $3.20 to $3.60 per bushel, with the midpoint unchanged at $3.40.
The crushings and co-products report released last week showed corn for ethanol production in December 2016 was up six percent from both the previous month and the previous year. Dry mill co-product production of distillers dried grains with solubles (DDGS) was 2.10 million tons during December 2016, up 5 percent from November 2016 and up 8 percent from December 2015.
Ethanol exports are in the news this week. First we heard about record net ethanol exports for 2016 in a new report from the Renewable Fuels Association (RFA), followed quickly by an industry letter to President Trump drawing attention to China’s trade barriers that are shutting out U.S. exports of ethanol and distillers feed co-products.
In this Ethanol Report, RFA CEO Bob Dinneen talks about the export situation for the industry and how the upcoming National Ethanol Conference will be focused on growing markets. Ethanol Report on Exports
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Ethanol and grain trade organizations are urging President Donald Trump to put America first and address “China’s recent implementation of protectionist trade barriers that are shutting out U.S. exports of ethanol and distillers dried grains (DDGS).”
The U.S. Grains Council (USGC), Renewable Fuels Association (RFA) and Growth Energy sent a letter to the president this week calling his attention to China’s recent imposition of anti-dumping duties and tariffs on U.S. ethanol and distillers feed co-products, which have had a negative impact on prices for both. “It is widely believed that raising these tariffs will put an immediate end to ethanol exports to China, erasing the significant progress our industry made in developing that market over the past several years,” wrote the groups to Trump. “[W]e respectfully ask that reform of these punitive ethanol tariff rates be included in any potential upcoming trade negotiations with China.”
China has grown to be a top export market for both U.S. DDGS and ethanol, accounting for over half of total U.S. DDGS exports in 2015, and ranking as U.S. ethanol industry’s third-largest export market at the end of 2016. Ethanol prices have fallen 15 percent since mid-December 2016 while DDGS prices are currently approximately 40 percent lower than in June 2016.
Net U.S. ethanol exports topped a billion gallons last year to set a new record, according to a summary of 2016 ethanol trade just published by the Renewable Fuels Association (RFA).
Net ethanol exports totaled 1.01 billion gallons in 2016, while gross U.S. ethanol exports totaled 1.05 billion gallons, second only to 2011’s record of 1.19 billion gallons. U.S. ethanol exports were valued at $2.02 billion in 2016, up 13 percent from 2015 and the third-highest on record.
Meanwhile, ethanol imports were only 34 million gallons last year, the lowest since 2010. Brazil was the leading destination for U.S. ethanol exports, followed by Canada and China. Together, the three countries accounted for 68 percent of total ethanol exports.
“Our industry produced 15.2 billion gallons of ethanol last year, and while we continue to meet our domestic needs, ethanol exports are essential for future growth,” said RFA President and CEO Bob Dinneen. “Just a few years ago, the U.S. was a net importer of Brazilian ethanol, but as U.S. producers have become more efficient and world sugar prices have risen, Brazil is now the top recipient of our domestic product.”
Printed copies of the analysis will available to attendees at the upcoming National Ethanol Conference, Feb. 20–22 in San Diego. The conference will also serve as host to the U.S. Department of Commerce’s International Buyer Program (IBP).
