US Ethanol Production and Exports Continue to Rise

According to the USDA Grain Transportation Report (GTR) on June 12, U.S. ethanol production is up 2% year-to-date compared to the same period last year, while exports are up 6%.

The production volume, which topped 4 billion gallons, was also 7% above the five-year average. Amid the production growth, Class 1 ethanol shipments by rail were up 5% year-over-year and 12% above the five-year average. Of the total ethanol produced, 71% was shipped by rail from the Midwest.

Of those rail shipments:

• 41% went to the East Coast,
• 29% to the Gulf Coast,
• 19% to the West Coast,
• 2% to the Rocky Mountains,
• 4% to Canada,
• 5% to other destinations.

Gulf Coast shipments grew 12% and West Coast shipments grew 17%, matching the increase in exports, GTR said.

Exports as a share of total demand reached a record 12% in 2024. In the first three months of 2025, exports have reached 14% of total consumption. Increased sales to key markets have driven ethanol exports up 6% year-over-year and 29% above the five-year average, according to the Foreign Agricultural Service (FAS).

The top five buyers — Canada, the European Union, India, the United Kingdom, and Columbia — accounted for 73% of all U.S. ethanol exports.

U.S. ethanol exports are expected to reach a record $4.3 billion in fiscal 2025, up 3% from fiscal 2024 if realized.

“Expected growth in Canada, the European Union, the United Kingdom, and Columbia is driven by national measures to mandate ethanol blending into gasoline,” GTR said in its report. “The growth in India is driven by increased demand for ethanol for non-fuel purposes as more of the country’s domestic ethanol is diverted to the fuel market.”

Tags: export, USA, ethanol