Nebraska Ethanol Plant Idled, Cites High Corn Prices
Tuesday, June 19th, 2012
NEDAK Ethanol, LLC has temporarily suspended production of ethanol at the plant it operates in Atkinson, Nebraska in order to conduct its regular spring maintenance and to monitor the corn and ethanol markets.
"We hope to resume production as soon as we have completed our spring maintenance and the crush margins have returned to a level that will enable profitable production."
President and General Manager, Jerome Fagerland, stated that "The early months of the year usually have fewer miles driven by consumers, which reduces the demand for gasoline and ethanol. Normally, consumer driving increases by the Memorial Day holiday, but it has been less so this year. We are also experiencing a much stronger local basis for current corn deliveries, resulting in relatively higher local corn prices." Fagerland also noted that "The surplus of ethanol combined with the increased demand for corn from developing countries has further contributed to the negative crush margins the ethanol industry is currently experiencing."
The Company is still determining the impact the halt in production will have on its workforce and whether it will lay off a portion of its workforce or require the entire workforce to work reduced hours. At a minimum, the Company will need to maintain the staff necessary to conduct its regular spring maintenance and cleaning while the plant is idle.
Fagerland stated "We hope to resume production as soon as we have completed our spring maintenance and the crush margins have returned to a level that will enable profitable production."