Mid-Missouri Energy: Ethanol from Corn
Forest L. Reinhardt
Harvard Business School
Noel Michele Holbrook
affiliation not provided to SSRN
December 1, 2010
Harvard Business School BGIE Unit case no. 711-004
MME is a farmer-owned cooperative that produces ethanol from corn. The cooperative has performed well in comparison to other producers but margins in the industry had declined as industry production levels neared market demand limits. MME farmers needed to decide whether to take advantage of their success and expand through acquisitions, whether they should sell the plant, or whether they should continue current operations. MME must consider ongoing regulatory changes that impacted the industry, the possible impact of imported ethanol, the power of the petroleum industry which bought its product, and ongoing uncertainty about corn and ethanol price swings.
To understand politics and economics of biofuels. To understand strategy in an industry heavily affected by government policy.
working papers series
Date posted: March 18, 2012
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