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Looking South for Ethanol

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Food giant Archer Daniels Midland may be looking overseas to feed our domestic energy needs.

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Corn processor ADM calls itself the supermarket to the world.

But lately the Illinois-based company’s acting like the fueling station to the world.

It controls a third of our ethanol market, but a Wall Street Journal report indicates ADM may soon invest in Brazilian ethanol.

Phil Flynn analyzes energy trends for Chicago-based Alaron Trading.

He says US corn farmers can barely keep up with current ethanol mandates, and Congress is heaping on more.

Flynn: It’s going to be very difficult to meet those demand goals. And it’s also going to keep food prices down at the same time, so this is going to be a major challenge. I think ADM is pretty smart in looking into this alternative fuel.

There’s no guarantee ADM will profit from Brazilian imports.

The US currently imposes a 54-cent per gallon tariff on foreign ethanol.

I’m Shawn Allee.

Chicago Public Radio.

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