Ethanol News
United Ethanol • Growing To Meet Your Needs
Ethanol News 1250 Chicago St. • Milton, WI 53563 • (608) 868-5900 • www.unitedethanol.com
November 2017
Greetings from the CEO David Cramer President and CEO Contents Greetings from the CEO
1
Measuring success inside the plant 2 Third-quarter financials insert
Farmers have been busy finishing up a late harvest, and fall fertilization. Yields have been good, despite all the early challenges to the crop this spring and summer with excess moisture. In Wisconsin, 30 percent of the state’s corn crop is devoted to ethanol production. Domestic ethanol usage continues to grow. Nationally, more than 4,000 stations throughout the U.S. offer E85 ethanol blends at the pump; while in Wisconsin, E15 is now available at more pumps than ever before. The U.S. has established itself as a powerhouse in the global ethanol trade. U.S. ethanol exports were at an all-time high for the 2016-2017 year – 1.37 billion gallons (488 million bushels in corn equivalent) – a 34 percent increase year-over-year. Canada and Brazil remained as the U.S. ethanol industry’s top customers, receiving roughly half of total shipments. Shipments to China surged as well, as the country increasingly recognized the value of ethanol as a solution to worsening urban air pollution. India, Peru and South Korea were among other top markets in 2016. The quantity of U.S. exports of distiller’s dried grains with solubles (DDGS) stayed steady with the previous marketing year with 11.09
million tons in exports. The global market for U.S. DDGS diversified significantly with increased purchasing by numerous customers including Mexico, Turkey, South Korea, Canada and even New Zealand. The increases offset a substantial decrease by the top two traditional buyers - China and Vietnam - which faced policy challenges. As of Sept. 30, 2017, United Ethanol produced 38,101,135 gallons of ethanol. The plant also produced 98,158 tons of distiller’s grains, and extracted 9,411,359 pounds of corn oil. Unit numbers are up 1,684,007 gallons of ethanol and 1,032,218 pounds of corn oil from a year ago, while DDGs are up 7,175 tons from last year’s nine month numbers. Have a safe and joyous fall season as we prepare for Thanksgiving and Christmas. Cooperatively Yours,
David Cramer President and CEO
1250 Chicago St. Milton, WI 53563 This newsletter is compliments of United Ethanol, LLC and is distributed to United Ethanol, LLC investors.
Measuring success inside the plant By: Chad Campbell, Chief Operating Officer At United Ethanol we measure just about everything we can count. This last quarter we’ve had a few interesting measurements I thought were worthy of sharing with our investors. First, we are very proud to have celebrated over 100,000 hours worked without an employee injury at the plant. What does this mean? Well, at an average of 33 employees working at United Ethanol, they went 575 days without a recordable incident. I’m proud of the employees for their efforts in maintaining a safe plant, and remaining injury free. The second measurable is that this fall’s turnaround was completed at a faster rate than ever before, without incident. Bringing the United Ethanol plant back to operational quickly after a turnaround is important for continuing production and returning profits. Lastly, light bulbs really make a difference. Not just to light up the spaces where we need light, but also as it relates to efficiency and energy costs. United Ethanol installed LED lighting in office space, distillation and grains. This may seem trivial, but this will save United Ethanol $20,000 per year. This is just one example of how our team is looking at items both big and small to save money for investors. LED prices had been very high in the past, but with technology improvements we could replace bulbs without replacing ballasts. Our maintenance team kept an eye on the LED price and when we hit low enough on the price the purchase was made, which yields a three-month return on investment. This is one of many examples of how the United Ethanol team works week by week to protect and grow your investment. Have a wonderful holiday season.
United Ethanol installed LED lighting in office space, distillation and grains. This may seem trivial, but this will save United Ethanol $20,000 per year.
Ethanol News 1250 Chicago St. • Milton, WI 53563 • (608) 868-5900 • www.unitedethanol.com
November 2017
Greetings from the CEO David Cramer President and CEO Contents Greetings from the CEO
1
Measuring success inside the plant 2 Third-quarter financials insert
Farmers have been busy finishing up a late harvest, and fall fertilization. Yields have been good, despite all the early challenges to the crop this spring and summer with excess moisture. In Wisconsin, 30 percent of the state’s corn crop is devoted to ethanol production. Domestic ethanol usage continues to grow. Nationally, more than 4,000 stations throughout the U.S. offer E85 ethanol blends at the pump; while in Wisconsin, E15 is now available at more pumps than ever before. The U.S. has established itself as a powerhouse in the global ethanol trade. U.S. ethanol exports were at an all-time high for the 2016-2017 year – 1.37 billion gallons (488 million bushels in corn equivalent) – a 34 percent increase year-over-year. Canada and Brazil remained as the U.S. ethanol industry’s top customers, receiving roughly half of total shipments. Shipments to China surged as well, as the country increasingly recognized the value of ethanol as a solution to worsening urban air pollution. India, Peru and South Korea were among other top markets in 2016. The quantity of U.S. exports of distiller’s dried grains with solubles (DDGS) stayed steady with the previous marketing year with 11.09
million tons in exports. The global market for U.S. DDGS diversified significantly with increased purchasing by numerous customers including Mexico, Turkey, South Korea, Canada and even New Zealand. The increases offset a substantial decrease by the top two traditional buyers - China and Vietnam - which faced policy challenges. As of Sept. 30, 2017, United Ethanol produced 38,101,135 gallons of ethanol. The plant also produced 98,158 tons of distiller’s grains, and extracted 9,411,359 pounds of corn oil. Unit numbers are up 1,684,007 gallons of ethanol and 1,032,218 pounds of corn oil from a year ago, while DDGs are up 7,175 tons from last year’s nine month numbers. Have a safe and joyous fall season as we prepare for Thanksgiving and Christmas. Cooperatively Yours,
David Cramer President and CEO
1250 Chicago St. Milton, WI 53563 This newsletter is compliments of United Ethanol, LLC and is distributed to United Ethanol, LLC investors.
Measuring success inside the plant By: Chad Campbell, Chief Operating Officer At United Ethanol we measure just about everything we can count. This last quarter we’ve had a few interesting measurements I thought were worthy of sharing with our investors. First, we are very proud to have celebrated over 100,000 hours worked without an employee injury at the plant. What does this mean? Well, at an average of 33 employees working at United Ethanol, they went 575 days without a recordable incident. I’m proud of the employees for their efforts in maintaining a safe plant, and remaining injury free. The second measurable is that this fall’s turnaround was completed at a faster rate than ever before, without incident. Bringing the United Ethanol plant back to operational quickly after a turnaround is important for continuing production and returning profits. Lastly, light bulbs really make a difference. Not just to light up the spaces where we need light, but also as it relates to efficiency and energy costs. United Ethanol installed LED lighting in office space, distillation and grains. This may seem trivial, but this will save United Ethanol $20,000 per year. This is just one example of how our team is looking at items both big and small to save money for investors. LED prices had been very high in the past, but with technology improvements we could replace bulbs without replacing ballasts. Our maintenance team kept an eye on the LED price and when we hit low enough on the price the purchase was made, which yields a three-month return on investment. This is one of many examples of how the United Ethanol team works week by week to protect and grow your investment. Have a wonderful holiday season.
United Ethanol installed LED lighting in office space, distillation and grains. This may seem trivial, but this will save United Ethanol $20,000 per year.
