WORLD
GRAIN
strong start for exports of
ETHANOL
Seven markets account for 88 percent of U . S . ethanol exports
Courtesy of U . S . Grains Council
Exports of U . S . ethanol are off to a strong start for the first quarter of the 2016 / 2017 marketing year and are at their highest levels during that time frame over the past five years , according to data recently released by the U . S . Department of Agriculture ’ s Global Agricultural Trade System ( GATS ).
Exports totaled 353.2 million gallons for the months of September , October and November 2016 , the first quarter of the 2016 / 2017 marketing year .
Brazil , Canada and China were the top customers for U . S . ethanol , respectively . India , Peru , South Korea and Mexico were the next largest markets with U . S . ethanol exports totaling 62.4 million gallons over the same time period . These seven markets accounted for 88 percent of U . S . ethanol exports in the first quarter and are markets the U . S . Grains Council and its industry partners are either working with currently or will be working with to develop demand for U . S . ethanol .
Exports of U . S . ethanol to Brazil have increased substantially to 111.6 million gallons in the first three months of the current marketing year , representing nearly a third of total U . S . ethanol exports , the second highest volume of U . S . ethanol exports to that country over the last decade . Enforceable government ethanol mandates are driving the increases in Brazilian imports of U . S . ethanol , as Brazilian sugarcane has been diverted to sugar production to capture a price premium . To enforce its mandates , Brazil ramped up imports of price-competitive U . S . ethanol , highlighting the important role of trade in meeting ethanol mandates globally .
U . S . ethanol exports to Canada totaled 87.8 million gallons during the first quarter of the 2016 / 2017 marketing year . This is the highest level of U . S . ethanol imports by Canada during this time frame , with a 26 percent increase in imports over the first quarter of marketing year 2015 / 2016 .
The U . S . Grains Council along with its partners in global ethanol market development , Growth Energy , the Renewable Fuels Association and USDA ’ s Foreign Agricultural Service , conducted technical workshops in Asia and Latin America describing the positive environmental and public health benefits of increased ethanol use . USGC also uses trade missions to target countries , as well as using trade teams to bring stakeholders to the United States and industry working groups to support the development of the global ethanol market .
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