There are multiple opportunities in Latin America for U.S. ethanol exports. Marri Tejada, regional director for Latin America with the U.S. Grains and BioProducts Council, said the biggest opportunities are in countries with ethanol mandates in place and limited local production.
“So, in Latin America, Colombia is our largest market in the region, and continues to be a very strong market. We’re also looking at Peru as one of the most consistent buyers of U.S. ethanol, and it certainly has room for growth. Right now, it’s at an E-point-seven-eight mandate, which we’re looking to push to E10 and to higher blends. Jamaica, surprisingly, for a small island country, has also been a strong Caribbean example because it’s actively blending, and it’s dependent on imports.”
Guatemala stands out as an exceptional export opportunity.
“Guatemala announced their E10 blend mandate starting July one, and it’s probably one of the most important market-opening opportunities that we’ve seen in the region. We talk a lot about a domino effect, so it’s important because Guatemala could become a model for other Central American countries and the Caribbean to start a blend mandate using ethanol. With E10, the country could use close to 95 million gallons, but they don’t have the domestic production to supply all of their demand, so that creates a clear opportunity for imports, and, hopefully, coming from the United States. Right now, we’re working on implementation; that’s the next strategic implementation that we’re working on.”
Trade agreements are very important, and it’s hard work to strengthen commercial relationships overseas.
“They help to create clear, reliable access for our products, like U.S. ethanol and feed grains, as well. Older agreements, like CAFTA-DR, trade agreements with Colombia, Peru, and Panama, already give us a very strong advantage. But what’s new and exciting are the recent agreements. They’re starting to include more biofuels policy, more directly, and Guatemala is a great example of that, because it’s tied to the ethanol blend mandate. Ecuador is also an interesting market, because it creates new access where we did not previously have the same type of framework. But going forward, we want to keep pushing for biofuels and our other products to be included in trade conversations, not just like an afterthought.”
The Agreement on Reciprocal Trade (ART) between the U.S. and Ecuador also represents a solid opportunity.
“We’ve been working closely with our Ecuadorian partners in the ethanol field, but also with the feed, poultry, and pork sectors to better understand how improved access to U.S. feed grains, including corn and sorghum, could support their growth. So right now, Ecuador’s local corn prices are very high, and that creates a lot of pressure for animal protein producers, but also, eventually, the end consumer. So, better access to inputs like corn and sorghum would help Ecuador to strengthen its feed supply, while also creating new long-term markets for our farmers.”
There are even biofuel opportunities beyond road transportation in Latin America.
“There’s also growing interest in ethanol for marine fuel, especially given the importance of the Panama Canal and shipping in the region. Also, there are other regional jet operations there, like COPA, or even in Brazil and Colombia, looking at sustainable aviation fuel as another major opportunity. Industrial and beverage-grade ethanol are also important, and we see steady markets across Latin America.”