Years ago, at a trade conference, I asked a top DDGS marketer why the industry worried more about exports than domestic sales. It may have been a dumb question, but I asked it anyway. It simply didn’t make sense to me that so much emphasis was placed on non-U.S. coproduct markets, which consumed less than a fourth of our total output. The ethanol side was even more lopsided, with less than 10 percent of total U.S. volume leaving the country as an export. And still, those foreign shipments seemed to be regarded as equal in importance to vastly larger domestic volumes. What the marketer told me, while sort of obvious now, was enlightening at the time. He said our industry pays inordinate attention to exports—even when they represent a fraction of the total market—because they are “outlets that can totally dictate” what happens here at home. “That outside 10 percent,” he said, “sometimes determines everything about the 90 percent we sell here.”I don’t know if that was sage advice on trade economics, but it stuck with me, and I couldn’t help but reflect on it while reading this month’s cover story, “Boundless: Exporting to More Places,” on page 14. I’ve been around the ethanol industry long enough to have experienced the boom-and-bust, on-and-off trade cycles we’ve had with China—which is currently off—and the decades-long, back-and-forth, often sparring relationship we’ve had with Brazil—also currently turned down. What we’ve learned by losing those big markets is that overreliance on a few huge, foreign buyers is a bad idea. So today, destination diversity is our top trade priority, and it’s working. The industry is building new ethanol and coproduct markets (for both distillers grains and hi-pro) around the world, replacing those once huge but never really friendly destinations with myriad small and medium-sized takers, along with strong overland markets in bordering Canada and Mexico. The idea is that it’s better to have a bunch of small, consistent and receptive buyers than a couple of huge, hostile ones.Ideally, markets for ethanol will simultaneously expand both domestically and abroad. While all the hype around sustainable aviation fuel is very well deserved, SAF isn’t the only exciting thing on the horizon for ethanol. In “A Clear Road Ahead,” on page 24, we give readers an update on the progress of ClearFlame Engine Technologies, which is logging more hours on both ethanol-powered diesel trucks and stationary gensets, the former being part of the hard-to-decarbonize segment and the latter being a sustainable EV-charging solution. The story’s biggest takeaway: Every 40,000 semi-trucks using ethanol (E98) in the future—just 1 percent of the total diesel market—will increase ethanol demand by 1 billion gallons. That’s a figure worth contemplating.With so much emphasis on clean fuels, we sometimes forget that it all starts with clean plants—literally. In “Watching Over Plant Hygiene,” on page 30, we get impeccable advice from two leading purveyors of antimicrobial products and plant hygiene solutions. We learn that healthy fermentations are as much about monitoring the process as treating it. Fortunately, we have specialists that help producers create customized blueprints for implementing hygiene strategies that work throughout the plant. From auditing, sampling and SOP adherence to tried-and-true product application, CIP and automated dosing, developing a top-tier ethanol plant cleaning program has never been more in reach. &nbsp; &nbsp; &nbsp; &nbsp;Enjoy the read.Author: Tom Bryan&nbsp; President and Editor&nbsp; BBI International

2023-12-06 - Diversifying Outlets, Near and Far (Ethanol Producer Magazine)

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The January issue of Ethanol Producer Magazine addresses the importance of export markets to the U.S. ethanol industry. The issue also provides an update on Clear Flame Engine Technologies and discussion of plant hygiene solutions.  

Diversifying Outlets, Near and Far

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