Banker Says 40 Ethanol Plants In Trouble
November 24, 2008 An Omaha, NE, investment banker predicts as many as 40 ethanol plants could be in bankruptcy by early next year, according to a report in the Des Moines Register.
Mark Lakers of Agribusiness and Food Associates says that 40 figure includes the 16 plants owned by VeraSun Energy, which is currently operating under Chapter 11 bankruptcy. His comments were made at the American Bankers Association’s Agricultural Bankers Conference in Des Moines.
Lakers expects the ethanol industry to go through a consolidation. "We believe that the number of ethanol producers will reduce from 150 to something closer to 50 producers in the next three to five years," says Lakers.
Lakers says the ethanol industry will likely be taken over by investors who are looking for bargains and by existing ethanol companies that have no debt. However, he does not expect ethanol production to decrease. In fact, he expects it to continue to increase.
(Source: BrownfieldAgNews)
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