Our northern neighbors are the leading destination for U.S. ethanol exports

U.S. ethanol exports to Canada continue to climb. The Renewable Fuels Association says our northern neighbors are the leading destination.

“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 and very predictable. 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,” said Geoff Cooper.

But Cooper says that has not been the case with China, which has a 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 have 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,” said Cooper.

Brazil recently suspended its 20 percent tariff through January, but experts say they only imported between 60 and 80 million gallons last year, which is a fraction of pre-tariff levels.