The ethanol industry has seen over $3.4 billion in lost revenues due to the COVID-19 pandemic, the Renewable Fuels Association (RFA) said Wednesday.
Pandemic-related damages in the ethanol sector could reach some $9 billion, with $7 billion in losses during 2020 and another $1.8 billion in 2021, RFA warned. “If additional travel and business restrictions are adopted by states, the losses would be larger and may even surpass the $10 billion estimate from RFA's initial forward-looking analysis released in April,” the group added.
The $3.4 billion decline in revenues seen to date were due to a combination of reduced ethanol output and lower prices, RFA said. “The social distancing and government-imposed restrictions associated with COVID-19 resulted in a dramatic reduction in the consumption of motor gasoline and ethanol in the spring of 2020,” the analysis noted.
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