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Ethanol producers feel pain of low oil price

Todd Becker

Todd Becker

The ethanol industry has faced many challenges over the years.  The latest is the sharp drop in the oil price, which has lowered the price that ethanol producers receive for their product.

“It’s making it more challenging than it ever has in the past,” says Todd Becker, president and CEO of Omaha-based ethanol producer Green Plains. “We just have to show that we can compete and it’s the job of the agricultural markets to go down to a level that can compete head-to-head with oil again. We’re not doing it right now.

“It’s definitely a tighter margin structure than we’ve seen in quite a while. But I believe that markets are very reactive and I think it’s coming.”

Becker thinks the industry will adjust by cutting back on production in the coming weeks.

We spoke with Becker at the recent Iowa Renewable Fuels Summit in Altoona, Iowa.

AUDIO: Todd Becker

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