Ethanol Woes Spur New Feed Focus for Green Plains: CEO
Company will invest $400M to make animal feeds its new flagship product
Green Plains Inc, one of the biggest U.S. ethanol producers, is planning to flip its business model upside down to survive a crash in prices for the corn-based fuel, reports Successful Farming.
The company will invest some $400 million in the next two to three years at its 13 plants to make high-protein, corn-based animal feeds its new flagship product, relegating ethanol to a low-margin byproduct.
The plan upends the company's years-long strategy of pumping out the fuel and selling off the remnants as a low-quality feed known as distillers dried grains (DDGS) for cows and pigs.
Green Plains' ethanol revenue fell 19.8% to $1.701 billion in 2019, its annual report released on Monday showed, the lowest since 2010.
Green Plains will start production of its new feed in February at a plant in Shenandoah, IA.