Annual Report Examines Concentration in Ethanol Industry

Federal Trade Commission concludes the ethanol market remains un-concentrated.

The Federal Trade Commission released its 2008 Report on Ethanol Market Concentration on Monday. Required by the Energy Policy Act of 2005, the report shows that the U.S. ethanol market remains un-concentrated on the basis of production or capacity.

New ethanol firms have continued to enter the marketplace reducing the largest ethanol producers' share of capacity. As of September there were 160 ethanol producing firms in the U.S., an increase of 57 since a year ago.

The report concluded that the current level of concentration would not allow a firm or group of firms to set or coordinate price or output levels. It also said that the ease of entering the ethanol industry and the availability of imports provided additional constraints on current market participants.

The complete report can be viewed at the FTC Web site at www.ftc.gov.

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