Grains Council Working on Ethanol Exports

usgrainscouncil1The U.S. Grains Council (USGC) is working on promoting exports of U.S. ethanol through a partnership between USDA’s Foreign Agriculture Service, Growth Energy and the Renewable Fuels Association (RFA).

“We’ve been working since late March, early April to determine which markets we’re going to do market assessments in and then next year we’ll shift into market development activities,” said Ashley Kongs, USGC manager of ethanol export program. The Grains Council is planning three regional market assessment programs this year, going to Japan and Korea in September, Latin America in November, and southeast Asia in early December.

Earlier this year, USGC participated in a trade mission to China with USDA Undersecretary Michael Scuse where they were able to discuss the possibility of ethanol exports to that country. “They visited with a Chinese ethanol plant and they had meetings with the National Energy Administration in China,” said Kongs. “Currently ethanol can only be sold in six designated markets in China for blending with fuel, but the group had discussions about the possibility of expanding ethanol use nationwide.” Kongs says while there are challenges in the Chinese market, the Grains Council sees great potential for the future to open the door for U.S. ethanol exports.

USGC continues to build on its success in promoting exports of the ethanol co-product distillers grains and will be again this year joining RFA in hosting the Export Exchange, an international trade conference focused on the export of U.S. coarse grains and ethanol co-products held every two years. Early registration for the event is open until July 31 and USGC and RFA members are eligible for discounted pricing.

Export Exchange 2014 Registration Open

2014-export-exchangeRegistration is now open for Export Exchange 2014™, an international trade conference focused on the export of U.S. coarse grains and ethanol co-products.

Approximately 300 U.S. suppliers and agribusiness representatives and more than 180 international buyers are expected to attend Export Exchange 2014. The conference is being held Oct. 20-22 at the Sheraton Seattle Hotel and is co-sponsored by the U.S. Grains Council (USGC) and the Renewable Fuels Association (RFA).

“Export Exchange brings together a group of U.S. suppliers and international buyers in a unique event focused on the expansion of established export markets and the development of new markets for U.S. coarse grains, distillers dried grains with solubles (DDGS) and other ethanol co-products,” said USGC Chairman Julius Schaaf.

“Over the past decade, the U.S. ethanol industry has emerged as a major producer of high quality animal feeds like DDGS and corn gluten feed,” said Bob Dinneen, RFA president and CEO. “Export Exchange is the premier forum for connecting the producers and marketers of those co-products with customers around the world.”

Export Exchange is held every two years. The 2012 event broke records in attendance and attracted buying teams from 33 countries, including all of the top U.S. international coarse grains and ethanol co-products markets. Attendance at this year’s event is expected to set a new record, creating more opportunities for U.S. merchandisers to connect with buyers and build business.

Early registration discounts end July 31. USGC and RFA members are eligible for discounted pricing and should identify themselves as such at the time of registration.

Ethanol Groups Participate in China Trade Mission

RFANewlogoU.S. Department of Agriculture (USDA) Under Secretary for Farm and Foreign Agricultural Services Michael Scuse led a mission to promote U.S. agricultural exports in northeast China May 5-13. The mission is part of President Obama’s “Made in Rural America” export and investment initiative, designed to help rural businesses and leaders take advantage of new investment opportunities and access new customers and markets abroad.

growth-energy-logoTaking part in the mission to promote U.S. biofuels and co-product exports was Renewable Fuels Association (RFA) Director of Regulatory Affairs Kelly Davis and Jim Miller with Growth Energy.

During a press conference Tuesday to talk about the trade mission, Davis said it was her first trip to China and she was astounded by the number of cars on the roads and sees a great need for both biofuels and distillers grains for livestock feed in that country. Miller added that China provides an excellent market opportunity for the U.S. ethanol industry.

Also taking part in the trip and the press conference was Roger Johnson, president of the National Farmer’s Union. Ethanol Press Conference Opening Remarks

New Record Distillers Grains Exports

Distillers grains exports set a new monthly record in March, while U.S. ethanol exports rebounded from the previous month, according to the latest numbers.

distillers-grainsThe Renewable Fuels Association (RFA) reports that March exports of U.S. distillers grains, which is the animal feed co-product from dry mill ethanol plants, were a record 1.16 million metric tons. March shipments were up 28% from February and topped the one million mark for just the fourth time in history. China accounted for half of the export shipments, with Mexico and South Korea taking the second and third place slots. Year-to-date, distillers grains exports as of March totaled 2.97 million metric tons, a 65% increase over the same period a year ago, putting the U.S. on pace to export a record 11.9 million metric tons this year.

At the same time, total U.S. ethanol exports, including both denatured and undenatured, were 84.0 million gallons in March, up 25% over February and just slightly below the January total of 86.2 million gallons. Canada and Brazil were top destinations in March, with both the Philippines and Nigeria re-entering the market. Meanwhile, U.S. ethanol imports totaled just 5.3 million gallons in March, making the United States a net exporter by a wide margin for the seventh straight month.

Ethanol Exports Start 2014 Higher

Exports of U.S. ethanol started 2014 at the highest level seen in over two years.

rfa-annAccording to U.S. Census Bureau data, ethanol exports in January totaled 86 million gallons, which is the highest monthly volume since December 2011. “Exports were up a third from December 2013, while imports remained sparse, meaning the United States was a net ethanol exporter by the widest margin in over two years,” according to Renewable Fuels Association research analyst Ann Lewis, writing on the E-xchange blog.

Brazil was the top customer for U.S. ethanol, beating out Canada for the number one spot, importing nearly 23.9 million gallons, the largest monthly volume to Brazil in two years. Exports to Canada dropped 36% from December to 18.8 million gallons (mg). Rounding out the top destinations were the United Arab Emirates (12.4 mg), India (10.7 mg), the Philippines (5.5 mg), and Mexico (3.3 mg).

Meanwhile, exports of the ethanol co-product distillers dried grains (DDGs) were lower in January, down 9% to 903,827 metric tons (mt). Lewis notes that China was again the leading destination with 344,147 mt. “However, China’s market share scaled back to 38%, in contrast with its majority stake (56%) of U.S. DDGs exports averaged over the second half of 2013,” writes Lewis. Mexico (140,664 mt), South Korea (77,977 mt), Vietnam (48,514 mt), and Japan (44,505 mt) rounded out the top five DDGS markets in January.

Analysis: Export Market a Bright Spot for US Ethanol

Ethanol producers might be fretting about the government’s proposal to lower the amount of the green fuel to be mixed into the Nation’s fuel supply. But this analysis from the University of Illinois points out that those Renewable Fuel Standard (RFS) numbers don’t matter when it comes to ethanol going over the border and to foreign shores, a bright spot for the American industry.

An important point to note is that ethanol or other biofuels produced in the US and exported for consumption overseas do not count toward the blenders’ RFS obligations. The Renewable Identification Numbers (RINs) associated with exported biofuels are retired and no longer eligible for use towards RFS compliance. Thus, exports are not substituted for domestic consumption but rather represent additional demand. Ultimately, exports provide a path around, rather than through, the ethanol blend wall by allowing the domestic industry to produce greater volumes of ethanol than the blend wall limitation implies for domestic use.
ethanolexports
The analysis goes on to look at markets for American ethanol in Brazil, Canada, the European Union, Mexico and other foreign consumers and how it could take up the amount proposed to be lowered in the RFS.

Ethanol Exports Important to Industry

nec14-patriot-juddExports of both ethanol and the animal feed co-product distillers dried grains (DDGs) are important for Patriot Renewable Fuels, located near the Quad Cities and not far from Chicago.

Patriot commodity manager Judd Hulting attended a trade mission with the U.S. Department of Commerce and the Renewable Fuels Association (RFA) to Brazil last fall. “It’s just another outlet for our 200 or so investors,” he says. “We are actually close to 100% dependent on the export market for our distillers grains so branching out both in the ethanol and the DDG market is very important for our profitability going ahead.” Interview with Judd Hulting, Patriot Renewable Fuels

nec14-hubbardRFA General Counsel Ed Hubbard led that mission to Brazil last fall and talked about it during a panel at the National Ethanol Conference on Expanding the Global Marketplace for U.S. Ethanol.

“We had a very successful mission opening new business for individuals that participated,” said Hubbard. “We are the global leader in ethanol production, producing 57% of the world’s output.”

Hubbard noted that U.S. ethanol exports surged to 82.4 million gallons in November, with large volumes finding their way into new or emerging markets such as China and India, as well as the Philippines, Tunisia, Panama, and Mexico. Ethanol exports totaled 621.5 million gallons in 2013, the third-highest annual total on record. Comments from RFA General Counsel Ed Hubbard

Also on the export panel were:

Eco-Energy CEO Chad Martin – Comments from Chad Martin, Eco-Energy
DATAGRO Consulting president Plinio Nastari – Comments from Plinio Nastari, DATAGRO
U.S. Department of Commerce trade specialist Cora Dickson – Comments from Cora Dickson, US Commerce Dept.

2014 National Ethanol Conference Photo Album

NEC Coverage sponsored by Patriot Renewable Fuels LLC

NEC Global Ethanol Conversation

nec14-globalIt is always interesting to hear the perspectives of different countries during the National Ethanol Conference global panel and to see the similarities as well as differences in viewpoint.

The panel was moderated by Bliss Baker, Global Renewable Fuels Alliance, and included Renewable Fuels Association president Bob Dinneen, as well as (from left to right): Joel Velasco, Senior Advisor to Board of UNICA; Scott Thurlow, President, Canadian Renewable Fuels Association; Jayant Godbole, President and Director PRAJ Americas, Inc.; and Robert Vierhout, Secretary-General, ePURE

nec14-epureA few years ago, it was Brazil and the United States sparring with each other over ethanol trade and tariffs, but now it is the Europeans who are challenging the U.S. ethanol industry in the export arena.

“The real loser in the EU’s nonsensical action is the European consumer, who is being denied access to low cost high performance renewable fuels,” Dinneen said in his state of the industry address. Vierhout challenged that assertion on the panel. “Bob, please wake up,” said Vierhout. “If you would export your ethanol to Europe, who’s going to gain? Not the consumer, it’s the oil companies.”

Even Brazil and Canada fired back at Vierhout over Europe’s policy. “I’ll summarize for Rob,” said Velasco. “He’s never met a gallon, or a liter, or hectoliter, of ethanol imports that he likes.”

Thurlow questioned how this would play in the current European-U.S. trade negotiations. “I don’t see how your position can be tenable, Rob, if you are going to have a dispute resolution mechanism that will basically make it impossible for these types of ‘snap-back tariffs’ to be put on,” he said. To which Vierhout replied, “There’s still a possibility (the trade agreement) will exclude ethanol.”

Listen to the conversation here and watch the European exchange on video below: Growing Global Ethanol Industry Panel Discussion

2014 National Ethanol Conference Photo Album

NEC Coverage sponsored by Patriot Renewable Fuels LLC

Distilers Grains Exports Record High in 2013

Patriot Renewable Fuels DDGsU.S. exports of the ethanol co-product distillers grains set a new record last year and exports of ethanol were lower but still strong.

According to the latest government statistics, exports of distillers dried grains with solubles (DDGS) totaled a record 9.7 million metric tons (mmt) last year, up 31% from 2012 and well above the previous record of 9.0 mmt set in 2010. China was the leading destination for U.S. distillers grains, taking 46% of the total, with Mexico and Canada a distant second and third.

ethanol-tankerU.S. exports of ethanol totaled 621.5 million gallons in 2013, down from the previous year but still the third-highest annual total on record. Canada was by far the leading export market for the year, receiving 52% of the total. The Philippines ranked second, followed by Brazil, the United Arab Emirates, and Mexico. Meanwhile, U.S. ethanol imports were down 27% from 2012, making the United States a net exporter of 226.3 mg in 2013, roughly a 24% increase over 2012 net exports.

“U.S. produced ethanol is the world’s lowest cost liquid transportation fuel. As such, we anticipate that export opportunities will continue to grow as countries across the globe recognize the air quality, high octane and superior performance of renewable ethanol,” said Bob Dinneen, President and CEO of the Renewable Fuels Association.

Export Exchange 2014 Heads to Seattle, WA

Export Exchange 2014 is heading to Seattle, Washington and will take place on October 20-22, 2014 at the Sheraton Seattle Hotel. The event is sponsored by the Renewable Fuels Association (RFA) and the U.S. Grains Council (USGC). Held every two years the Export Exchange is a premier international trade conference focused on the export of U.S. coarse grains and co-products. Last year’s event attracted buying teams from 33 countries, including all of the top U.S. international markets.

In 2014, approximately 150 foreign buyers of U.S. coarse grains and co-products are expected in Seattle, on hand to meet and build relationships with more than 300 domestic suppliers in attendance. There will also be more than two days of educational sessions and networking opportunities.

2014 Export Exchange logo.jpgExport Exchange 2012 exceeded all expectations,” said USGC Chairman Julius Schaaf, “and many of our foreign guests have already expressed their intent to return in 2014. Buyers will converge in Seattle next October, ready to make contacts and do business. U.S. grains sellers and ethanol producers can expect to rub shoulders with more than 80 percent of the world’s top buyers at Export Exchange. Key stakeholders will surely benefit from attending. We’re really looking forward to this event.”

Export Exchange focuses on bringing international buyers of U.S. coarse grains and distiller’s dried grains with solubles together with U.S. producers and agribusiness professionals. Attendees will also have the opportunity to participate in pre- and post-conference missions to view the U.S. production and export complex and learn more about the capacity, reliability and quality of the United States as a long-term supplier.

“There is an increased global demand for DDGS (distiller’s dried grains with solubles) and Export Exchange connects the dots by bringing interested buyers and sellers together to help grow the international market,” added Bob Dinneen, President and CEO of RFA.

USTR Nominee Answers EU Ethanol Export Question

fromanThe issue of the European Union’s treatment of ethanol imports from the United States came up during a Senate Finance Committee nomination hearing Thursday for U.S. Trade Representative (USTR) nominee Michael Froman.

Sen. John Thune (R-SD) noted that he and a number of other senators sent a letter in April to the Acting USTR asking for an investigation into the anti-dumping decision made by European Union regarding ethanol imports from the United States. “American ethanol producers believe that what the EU has done in imposing a countrywide anti-dumping duty on all U.S. ethanol imports is both unprecedented and unsupported from a legal standpoint,” Senator Thune said.

Forman answered in the affirmative when the senator asked him if he would commit to “carefully reviewing the EU’s action on ethanol” and pursue “every available remedy to ensure that U.S. ethanol exporters are treated fairly by the EU.”

The nominee said he was familiar with the issue and that his understanding is that “USTR is reviewing the methodology that the EU used in that case.”

Froman currently serves as the White House deputy national security advisor for international economic affairs.

Groups Seek to End EU Duty on US Ethanol

The Renewable Fuels Association (RFA) and Growth Energy have filed a complaint with the General Court in Luxembourg challenging the European Union’s (EU) decision to impose a 9.6 percent antidumping duty on all ethanol imported from the United States.

Growth_Energy_logo-1The complaint outlines 10 specific violations of one established trade law committed by the European Commission in its investigation of anti-dumping claims, and the imposition of a country-wide anti-dumping penalty, against all U.S. ethanol. These include errors in the assessment of relevant facts in determining injury and dumping margins as well as violations of the EU’s own rules regarding the implementation of anti-dumping penalties, such as their refusal to calculate individual dumping margins and assign individual dumping duties, their incomplete and inaccurate calculation of an alleged injury margin, and their overstatement of the volume of imports from the U.S. The complaint from RFA and Growth Energy requests the complete and total end of the duty.

RFA-logo-13The RFA and Growth Energy are trying to remedy the situation through other avenues as well. EU’s determination to impose the duty violates various requirements put in place by the World Trade Organization (WTO). Consequently, RFA and Growth Energy are working with appropriate officials in the United States to pursue a challenge before the WTO.

Earlier this month, 14 Senators signed a bipartisan letter to Acting Commerce Secretary Rebecca Blank and Acting US Trade Representative Demetrios Marantis demanding that the Administration carefully evaluate the EU’s decision to impose a duty on imported ethanol and consider challenging the WTO requirements.

Senators Urge Probe in EU Ethanol Duty Decision

A bipartisan group of senators are asking for an investigation into a recent anti-dumping decision made by European Union regarding ethanol imports from the United States.

wtoFourteen Democratic and Republican Senators have joined together to sign a letter sent to the Acting United States Trade Representative (USTR), Demetrios Manatos and Acting Secretary of Commerce, Rebecca Blank, calling on them to review and consider a World Trade Organization (WTO) challenge to the European Union’s controversial and unprecedented anti-dumping duty recently imposed on U.S. ethanol producers.

The letter was co-authored by Senators John Thune (R-SD) and Amy Klobuchar (D-MN), and cosponsored by Senators Tom Harkin (D-IA), Chuck Grassley (R-IA), Al Franken (D-MN), Mike Johanns (R-NE), Heidi Heitkamp (D-ND), Deb Fischer (R-NE), Tim Johnson (D-SD), John Hoeven (R-ND), Claire McCaskill (D-MO), Pat Roberts (R-KS), Richard Durbin (D-IL) and Roy Blunt (R-MO).

In a joint statement, Renewable Fuels Association CEO Bob Dinneen and Growth Energy CEO Tom Buis said they are pleased to see the senators take action in the matter.

“The EU Commission failed to make any particular finding of dumping by any producer or marketer investigated in connection with the case,” said Dinneen and Buis. “The EU’s recent actions are unprecedented and we believe that the World Trade Organization (WTO) will nullify this blatantly protectionist country-wide anti-dumping duty on exports of ethanol from the United States.”

Read more here.

EC Proposes Duties on Imported Ethanol

Following an investigation that concluded U.S. exporters sell ethanol to Europe at illegally low prices after receiving subsidies, The European Commission (EC) has proposed a rare duty on all U.S. producers of ethanol. In response, the U.S. Trade Representative’s office expressed its disappointment in the EC proposal, seeking anti-dumping duties of 9.5 percent on American ethanol. The EC distributed a proposal to member states with a request that the regulation is adopted by February 22, 2013.

Ethanol ExportsThe American ethanol industry has been vocal on the issue and the Renewable Fuels Association (RFA) and Growth Energy, jointly released a statement. “America’s producers and marketers of ethanol are outraged by the news that the European Commission has proposed to the European Council an anti-dumping duty equivalent to 62.3 Euro per tonne on all ethanol produced in the United States, regardless of who produces the product or who sells it. This decision is unprecedented. Not only does it fly in the face of over 30 years of consistent practice by the EC, but it also violates numerous provisions of the World Trade Organization’s Agreement on Antidumping.”

Bob Dinneen, president of RFA added, “This proposal is legally vulnerable on numerous grounds. They selected six producers for investigation and none were found to be dumping; nonetheless, duties are being imposed. In addition, all those producers not selected for review are also being penalized, again with no dumping having been found.”

“We are exploring every option to overturn this decision. Our producers and trading companies cooperated fully with the Commission’s requests for information. In the end, it was all ignored in favor of what can only be described as a political decision to erect an artificial trade barrier,” concluded Growth Energy CEO Tom Buis.

According to an article in Reuters, shipments of ethanol from the United States to the EU are worth more than $930 million, or 700 million euros, a year.

European Committee Proposes US Ethanol Tax

rfa-logo-09The Antidumping Advisory Committee, composed of representatives from member states of the European Union, has reportedly endorsed a 9.6 percent penalty on U.S. ethanol exports to Europe.

In response to the announcement, a joint Growth_Energy_logo (1)statement was released by Growth Energy and the Renewable Fuels Association.

“This is simply one step in an ongoing process. While the Antidumping Advisory Committee has voted in favor of imposing an anti-subsidy duty on U.S. ethanol exports, this is one committee making a recommendation to a larger body and the matter is not final. While we are troubled by the Commission’s preliminary decision, we remain convinced that this matter lacks the merit necessary for imposing such a duty and that, when all the facts are considered, the European Union will rightly decide not to impose any antidumping duties on imports of ethanol produced in the United States.”