Examination of Ethanol Marketing and Input Procurement Practices of the U.S. Ethanol Producers

Growing concerns about the dependence on foreign oil and high prices of gasoline have led to rapid growth in ethanol production in the past decade. Unlike earlier development of the ethanol industry which was highly concentrated in a few large corporations, recent ownership of the ethanol plants has been by farmer-owned cooperatives. Not much is known about the marketing and purchasing practices and plants’ flexibility with respect to adapting new technologies. The purpose of this research is to fill the gap in knowledge on these practices and to test whether the practices differ with the size and type of ownership.