Latin America continues to present new opportunities for U.S. ethanol exports, with established markets remaining strong and several countries expanding their use of biofuels. Marri Tejada, regional director for Latin America with the U.S. Grains and BioProducts Council, said countries with ethanol blending mandates and limited domestic production are creating new demand for U.S. exports.
While Colombia remains the region’s largest market for U.S. ethanol, Tejada said Guatemala represents one of the most significant new opportunities. The country’s E10 ethanol blend mandate took effect July 1 and could serve as a model for neighboring countries looking to expand their own biofuel programs.
Tejada said trade agreements continue to play a major role in expanding export opportunities for both ethanol and feed grains. Existing agreements with countries throughout Latin America provide reliable market access, while newer agreements are beginning to place a greater emphasis on biofuels.
The Agreement on Reciprocal Trade between the United States and Ecuador is another example of growing trade opportunities. Tejada said the agreement benefits more than just ethanol exports, as Ecuador’s high domestic corn prices have increased interest in importing U.S. feed grains like corn and sorghum to support its livestock industry.
Looking ahead, Tejada said demand for ethanol is expected to continue growing beyond traditional road transportation. Interest in marine fuel, sustainable aviation fuel, and industrial and beverage-grade ethanol continues to expand throughout the region, creating additional opportunities for U.S. agriculture.
Tejada said strengthening commercial relationships throughout Latin America will remain an important part of expanding export opportunities for U.S. agriculture. As more countries adopt higher ethanol blends and explore new uses for biofuels, demand for American ethanol and feed grains could continue to grow in the years ahead.
