U.S. Grains Council Ethanol Export Promotion Efforts Ethanol Leaders

Summit

The Mission of the Council: The U.S. Grains Council develops export markets for U.S. barley, corn, grain sorghum and related products (corn co-products, ethanol). The Council believes exports are vital to global economic development and to U.S. agriculture's profitability.

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Council Members: A Unique Partnership

26 State Checkoff Boards Corn Barley Sorghum

1 National Checkoff Board United Sorghum Checkoff Program

22 Grower Associations County, State & National

Council Members: Diverse & Dedicated

125 Agribusinesses Life Science Seed Providers Equipment, Storage and Handling Marketing, Commodity Traders Transportation Ethanol Plants

2 State Non-Checkoff Entities State Departments of Agriculture

Your Global Marketing Arm

…How this Funding is Leveraged

Why Ethanol Exports?

• U.S. Industry Capacity

• Competitive Advantages

• Potential for Overseas Market Growth

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US Ethanol Exports 2013

Country million gal. Canada 322.0 Philippines 51.5 Brazil 43.9 UAE 39.5 Mexico 23.6 TOTAL 621.5

Total value $1.5 billion in 2013

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Source: Renewable Fuels Association; U.S. Department of Commerce

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US Ethanol Exports 2013

Canada 52%

Philippines 8%

Brazil 8%

UAE 6%

Mexico 5%

Peru 5%

Norway 2%

India 2%

Netherlands 2%

Jamaica 2%

UK 1%

Other 7%

Top US Ethanol Export Markets (Without Brazil or EU)

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50

100

150

200

250

300

350

400

450

2010 2011 2012 2013

OtherJamaicaIndiaPeruMexicoUAEPhilippinesCanada

Top Potential Export Markets

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Source: ProExporter

Brazil, 1098

Canada, 570

Japan, 459

United Kingdom, 304.75

India, 250

Nigeria, 240

Mexico, 236

Australia, 220

Philippines, 90

Netherlands, 86.25 Other, 393.45

Constraints to Ethanol Exports

1. Lack of fuel mandates OR poor enforcement of existing mandates

2. Preference for other oxygenates 3. Regulatory issues 4. Limits to industry capabilities 5. Public opinion 6. Alternative suppliers 7. Market access issues 8. Sustainability issues

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Marketing vs. Market Development

Marketing: Attempting to sell a product into a market. Market Development: Long term thinking, evaluating constraints, developing strategies, building demand.

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Ethanol Exports Steering Committee

• U.S. Grains Council

• Growth Energy

• Renewable Fuels Association

• Foreign Agricultural Service (USDA)

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Plans for 2014

• Sponsored participation in USDA trade mission to China

• Market assessment missions to three key

regions: • Japan and Korea • Southeast Asia • Latin America

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Highlights of 2014 Activities

• Japan has a limited ethanol project in place, with about 100 filling stations in Okinawa offering 3% blends

• Peru imports a significant volume of ethanol from the United States to fulfill its 7.8% blend mandate

• Travel to Southeast Asia offers an opportunity to meet with regional traders in a major transportation and trade hub

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2015 Plans

• Request of $420,000 for 2015

• Target four markets for market development activities

• Continue market assessments as resources allow

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APEC

APEC accounts for around 60 percent of world energy demand while the APEC region is a net energy importer and its demand for energy is on the rise. APEC endorsed a new APEC wide goal of doubling the share of renewables in the APEC energy mix from 2010 levels by 2030.

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21 APEC

Thank you!