Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Southwest Georgia Ethanol Idles Mill on Unprofitable Margins

Oct. 24 (Bloomberg) -- Southwest Georgia Ethanol idled its plant in Camilla, Georgia, as higher corn prices made production of the biofuel unprofitable.

The distillery has the capacity to produce 100 million gallons of ethanol annually.

“We idled it due to the corn prices,” Murray Campbell, the company’s president, said in a telephone interview. “We hope to come back up sooner rather than later.”

Southwest Georgia’s move follows Abengoa SA’s Oct. 1 decision to shut its Madison, Illinois, ethanol mill temporarily because of poor margins after the worst U.S. drought in 56 years scorched cornfields and raised production costs for the biofuel.

Denatured ethanol for November delivery declined 0.4 cent to $2.402 a gallon today on the Chicago Board of Trade. Futures have gained 9 percent this year.

Corn for December delivery dropped 1.5 cents to $7.545 a bushel in Chicago. The grain has risen 17 percent this year. One bushel makes at least 2.75 gallons of ethanol in the U.S.

Southwest Georgia has enough liquidity to cover expenses until next year’s corn harvest “but will be ready to ramp up production earlier, given the proper market opportunities,” it said in an e-mailed statement.

To contact the reporter on this story: Mario Parker in Chicago at mparker22@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.