The demand side of the Ontario corn balance sheet is poised to grow with the provincial government proposing to double its ethanol mandate for gasoline from five percent to 10 percent by 2020.
“We currently have the five percent mandate in place and it takes at least about a third of the corn production in Ontario. With the doubling of that, that is going to double the requirement to almost six million tonnes needed for ethanol,” says Barry Senft, CEO of Grain Farmers of Ontario, in the interview below. “It is a big jump, there’s no question about it,”
With yields increasing, and some corn currently being exported, he says he doesn’t see corn supply being a problem.
“I think the issue will be that of capacity to turn it into ethanol,” says Senft.
Senft joined Shaun Haney on RealAg Radio last week to discuss ethanol demand, business risk management, and trade priorities in Ontario: