As U.S. Ethanol Plants Shutter, Brazilian Imports Increase

WASHINGTON, DC – Roughly 30 percent of the nation’s ethanol plants are offline as the industry deals with rapid demand destruction due to the COVID-19 pandemic and deep drop in gasoline demand. Dr. Todd Hubbs, a University of Illinois Ag Economist, suggests that demand could fall by one billion gallons in 2020 based upon a 46 percent drop in demand since early March. The U.S. Energy Information Administration (EIA) says global demand has dried up as well with U.S. exports falling for the first time in four years. While domestic ethanol continues to flow to Brazil and Canada. Brazilian demand is down 34 percent and Canadian demand is off another 5 percent. Adding to the pain of domestic producers, Brazilian sugarcane ethanol imports to the U.S. have increased more than threefold and primarily serve the West Coast and California’s Low Carbon Fuel Standard.