MEDIA ROOM / MEDIA RELEASES
    July 13, 2012

    False information fueling ethanol’s effect on corn prices during drought

    Contact: Joshua Morby - 414.344.1733

    MILWAUKEE
    – Severe drought conditions and a reduced harvest are likely to drive corn
    prices up in short order, not the fact that a portion of America’s corn crop is
    used for ethanol production.

    Ethanol
    producers are also adjusting their output under these extreme weather
    conditions. According to the Commodity Research Bureau, U.S. ethanol production
    in the past three reporting weeks fell by a total of 6.8 percent to a nine-month
    low at the end of June.

    “More
    of the Wisconsin corn crop is still used for animal feed and consumption than
    for ethanol production,” says Josh Morby, executive director of the Wisconsin
    Bio Industry Alliance. “And what many people fail to realize is that while a
    portion of the corn grown by American farmers is used for ethanol production, a
    co-product of that process is dry distillers grains (DDGs), which is also used
    as a nutrient-rich animal feed.”

    According
    to the University of Minnesota, approximately 3.2 to 3.5 million metric tons of
    DDGs are produced in North America each year, which are in turn sold primarily
    to farmers as livestock feed.

    One
    bushel of corn is equal to 56 pounds. When used for ethanol production, one
    bushel of corn produces 2.8 gallons of ethanol and 11 pounds of distillers
    grains, a feed not only used by American livestock farmers but that is also
    exported to farmers around the world.

    “Ethanol
    production is not to blame for increased corn prices,” says Morby. “This is
    purely a weather-related situation, in which drier-than-normal and
    warmer-than-normal conditions have hit the Corn Belt and many Wisconsin
    farmers.”

    The
    Wisconsin Bio Industry Alliance is a diverse group of businesses, environmental
    groups and statewide and local organizations that have come together to build
    both public and legislative awareness of the Bio Industry in Wisconsin.
     
    For more information about the Alliance, or to find out how to join, please
    visit our website:
    http://www.wisconsinbioindustry.com

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