Ethanol Production, Corn Gluten Feed, and EC Trade

摘要

The profitability of ethanol depends not only on sales of ethanol, but on salesof several coproducts of corn wet-milling such as corn gluten feed (CGF). CGF demand and supply are affected by several European Community (EC) and U.S. policies, such as EC grain price supports and U.S. energy policies. Changes in existing policies and programs could have a significant effect on the CGF market and, consequently, on the profitability of ethanol production. The report examines the implications of several policy options on demand, supply, and price of CGF and on the profitability of ethanol production. The policy changes examined include: (1) the effect of proposed changes in EC farm and trade policies, and (2) the effect of increased ethanol production due to proposed U.S. environmental policies, such as the reauthorization of the Clean Air Act.