World Perspectives
biofuel

WASDE Ethanol Margin Forecast and EIA Projections

Ethanol production nameplate capacity has exceeded 16 billion gallons, growing more than 700 million gallons or 5 percent from 2017 to 2018. The increase in the U.S. Energy Information Administration‘s (EIA’s) official capacity estimate has been due to expansions in plant capacity and also more efficient processing. Of course, the bulk of the capacity remains in the Corn Belt. 14.8 billion gallons of that total capacity are located in the Midwest with approximately 8.4 billion gallons in three states: Iowa, Illinois and Nebraska. This year’s ethanol production is forecast to hit 15.9 billion gallons, up from 15.8 billion gallons last year, and run at 98 percent of capacity. The EIA also indicates daily production was at...

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From WPI Consulting

Weighing in on strategic realignment

WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.

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