Nebraska ethanol exports expanding

Nebraska foreign agricultural exports look to be growing, especially in the area of ethanol and DDGS. In 2009, Nebraska was fourth in the nation, at $4.8 billion, in agricultural exports.

According to the Renewable Fuels Association, "After sliding in three consecutive months, U.S. ethanol exports climbed substantially in July."

Based on the government data released Thursday, denatured and undenatured (non-beverage) ethanol exports totaled 25.2 million gallons, up 57 percent from June.

"In particular, denatured ethanol exports surged, with large volumes being imported once again by Brazil and the United Arab Emirates (UAE). After importing U.S. ethanol early in the spring of 2010, Brazil and UAE did not import any U.S. product in May or June," RFA reported.

Government data also showed, according to RFA, a total of 22.4 million gallons of denatured ethanol was exported in July (more than double the total from June). Canada continued to serve as the top U.S. export destination for denatured ethanol, importing 9.5 million gallons of product. Finland imported its first shipment of U.S. denatured ethanol this year, totaling 4.5 million gallons. Brazil, the Netherlands and UAE rounded out the top five denatured ethanol importers for July.

Exports of undenatured, non-beverage ethanol continued to slide in July, according to government data. Only 2.7 million gallons of undenatured product was exported, down from 5 million gallons in June. Nearly 90 percent of undenatured ethanol exports went to Mexico.

Total year-to-date ethanol exports for 2010 stand at 182.7 million gallons (121.7 million gallons of denatured ethanol and 61 million gallons of undenatured), meaning exports continue at a record pace.

Only once in the last 20 years has the U.S. exported more ethanol than it has through the first seven months of 2010. In 1995, the U.S. exported 197.5 million gallons of denatured and undenatured ethanol, according to RFA.

RFA also said that July marked a new monthly record for exports of distillers dried grains with solubles (DDGS), the livestock feed co-product generated by dry mill ethanol plants.

"In July, 886,300 metric tons of DDGS were exported from the United States. Year-to-date DDGS exports (January-July) now stand at 4.95 million metric tons, compared to 5.65 million metric tons for all of 2009. Notably, more DDGS were exported in the month of July alone than in the entire year of 2004," RFA said.

"The U.S. ethanol industry is on pace to export 8.5 million metric tons of DDGS this year, equivalent to about 28 percent of expected DDGS production," according to RFA.

China was the top destination for U.S. DDGS exports in July, accounting for nearly 40 percent of the total. Mexico, Turkey and Canada were the second-, third- and fourth-leading importers, respectively.

Nebraska is the nation's second-leading producer of ethanol at 2 billion gallons annually, using 600 million bushels of corn. For each bushel of corn used in ethanol production, more than 18 pounds of DDGS is produced.

source: theindependent