The US ethanol industry expects growth to continue in 2012, after the sector posted its best margins in five years in 2011 on the back of high crude oil prices and unexpected strength in the export market.
US ethanol exports reached a record 1.1bn gal (4.2bn litres) in 2011, more than 600m gal over the previous record of 396m gal set in 2010.
The significant growth in US shipments stemmed from demand in Brazil, which used to be the world's top ethanol exporter, but last year imported the biofuel from the US to avoid a supply shortage.
Brazil has announced plans to invest $35bn in 2012-2015 to increase sugarcane production so it can meet rising demand for ethanol.
In Europe, competitively priced US imports have exerted downward pressure on values for local material, eating into producers’ margins.
Despite Europe having a demand deficit, its ethanol industry has instigated an investigation into allegations the US dumped subsidised ethanol in Europe. If the complaint is upheld, import levies could be imposed on US material.