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FTC Issues 2007 Report to Congress on Ethanol Market Concentration

Press release: “The Commission has issued a study, 2007 Report on Ethanol Market Concentration, its third annual report on the state of ethanol production in the United States, as required by the Energy Policy Act of 2005. On the assumption that U.S. fuel ethanol is a relevant market, the report concludes that the market, when measured on the basis of production or capacity, is unconcentrated and has become even more unconcentrated over the past year. As of September 2007, 103 firms produced ethanol in the United States, a one-year increase of 13 firms, and a two-year increase of roughly 28 firms. The largest ethanol producer’s share of capacity has continued to fall each year as new firms enter the market. Currently, the largest producer accounts for approximately 16 percent of domestic ethanol capacity, down from 21 percent in 2006, 26 percent in 2005, and 41 percent in 2000.”

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