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Canada a Bright Spot for US Ethanol Exports

Canada is a bright spot for U.S. ethanol exports, while China, with its tariffs, continues to lag as an ethanol market.

Ethanol exports to Canada continue to soar, despite its barriers to other US farm-related exports, like dairy.

Renewable Fuels Association head Geoff Cooper; “Canada continues to grow, in terms of its imports of U.S. ethanol. It is far and away, the leading destination for ethanol exports leaving this country…and it’s been the most consistent market for U.S. ethanol producers, as well, it’s been very steady, very predictable. And, when you’re talking about export markets, that’s exactly what we’re looking for. We’ve seen so much volatility in some of these other markets, that it’s been great to have a reliable trade partner, in Canada.”

Which has not been the case with China and its continuing large tariff on U.S. ethanol.

“China has maintained that 35 percent tariff on ethanol imports from the U.S., and that’s made it cost-prohibitive to sell into that marketplace. There’ve been a few ‘drips and drabs’ that have gone into China this past year, but nothing significant, and certainly, nothing close to the volumes we saw flow into China several years ago.”

Brazil, meantime, again suspended through the end of this month, its 20 percent ethanol tariff, but still only imported some 60 to 80 million gallons last year, a fraction of pre-tariff levels.

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