Co-Products Help Keep Ethanol Producers Profitable in Lean Times
by Holly Jessen (Ethanol Producer Magazine) Coproducts are becoming an increasingly important factor in ethanol plant profitability, according to the third annual benchmarking report released Sept. 18 by Christianson & Associates PLLP.
Coproduct revenue had remained relatively constant, at an average of about 15 to 16 percent of total revenue since 2008, according to the report. After gaining ground throughout 2011 and 2012, it accounted for 18 percent of total revenue in 2011 and 23 percent in the first two quarters of 2012. “By aggressively seeking out additional co-product revenue streams, plants can continue to remain profitable despite leaner margins,” said John Christianson, managing partner. READ MORE