U.S. ethanol exports hit record as Canada becomes top buyer

Canada bought 37% of U.S. ethanol exports in marketing year 2023/24, pushing American shipments to a record and ending Brazil’s long run as the top destination. The move underscored how U.S. ethanol has found a wider lane abroad as Brazil built out its own corn ethanol industry and other markets leaned harder on blending mandates and lower-carbon fuel standards.

The U.S. Department of Agriculture’s Economic Research Service said record export volumes in 2023/24, measured from September through August, topped the previous high set in 2017/18. Canada’s share was the largest of any single market, but the load was not carried by one buyer alone. U.S. barrels also moved into the United Kingdom, the European Union, India, Colombia and the Netherlands, where policy-driven demand and fuel specifications kept import programs active.

The numbers kept climbing after that. U.S. ethanol exports reached 1.91 billion gallons in 2024, up more than 36% from 2023, while export value rose to a record $4.3 billion. The Renewable Fuels Association said the industry’s export value climbed further in 2025 to $7.6 billion, powered by 2.18 billion gallons of ethanol exports and 11.6 million metric tons of distillers grains shipments. That trade performance gave U.S. producers a larger outlet just as domestic output also hit a record 16.22 billion gallons in 2024 and domestic use rose to 14.26 billion gallons, the strongest since 2019.

The latest trade mix points to more than a temporary opening. The U.S. Energy Information Administration said 13% of domestic ethanol production was exported in the first seven months of 2025, up from a record 12% in 2024 and 11% in 2018 before the pandemic. It said increased exports to the Netherlands accounted for most of the growth through July 2025, a sign that European demand is taking a bigger share of the export lift. The Renewable Fuels Association also said exports to Canada set a single-year record in 2024, while shipments to the UK continued to rise after the country shifted to E10.

For U.S. producers, the competitiveness case rests on three pillars: price, carbon intensity and reliability of supply. Canada’s pull, Europe’s steady demand and the rise of the Netherlands as a growth market suggest U.S. ethanol is not just filling gaps left by Brazil, it is increasingly winning business where blending rules and cleaner-fuel targets reward it.