Report shows COVID-19 impact on ethanol industry
The Renewable Fuel Association (RFA) released a year-end white paper documenting the impact of the COVID-19 pandemic on the ethanol industry as demand sharply decreased beginning in April and never rebounded to pre-pandemic levels. The report is an eye-opening look at the fallout that has caused many ethanol plants to idle or operate at reduced capacity over the last nine months.
The low point came in April when ethanol production and consumption was nearly cut in half compared to averages three years prior. From March to November, the RFA reports a cumulative decline in ethanol production of two billion gallons. Subsequently, the ethanol industry’s corn usage has been reduced by 700 million bushels.
With reduced demand, the price of ethanol took a substantial hit during the pandemic, reduced by as much as 30 cents per gallon in March and April and 22 cents per gallon in November.
The volume and price reduction resulted in a reduction of industry revenues by $3.8 billion to date. Unfortunately, COVID-19’s impact to the ethanol industry is expected to continue until late spring at the earliest when vaccinations increase.
You can view the full RFA report by clicking here.
