Highwater Ethanol, LLC (the "Company") has decided to reduce its ethanol
production rate at the plant by approximately 20% for the foreseeable future.
The Company was operating at an average ethanol production rate of approximately
67 million gallons annually prior to making the decision to curtail production.
The Company believes that this reduction is warranted due to current negative
margins in the ethanol industry resulting in part from a slowdown in global and
regional economic activity and decreased ethanol demand due to the COVID-19
pandemic. Limiting ethanol production is expected to result in a corresponding
decrease in distillers grains and corn oil production. The Company will continue
to monitor COVID-19 developments and the effect on fuel demand and terminal
capacity in order to determine whether further adjustments to production will be
necessary.
Highwater Ethanol, LLC is engaged in the production of ethanol and distillersâ grains at the plant. The Company operates through the manufacturing and marketing of fuel-grade ethanol and the co-products of the ethanol production process segment. The Company's products include Ethanol, Distillers Grains and Corn Oil. Its primary product is ethanol. Ethanol is ethyl alcohol, a fuel component made primarily from corn and various other grains. The ethanol it produces is manufactured from corn. The principal co-product of the ethanol production process is distillersâ grains, a high protein, high-energy animal feed supplement primarily marketed to the dairy, poultry, swine and beef industries. The corn oil that the Company produces is not food grade corn oil and therefore cannot be used for human consumption. Its corn oil can be used as the feedstock to produce biodiesel, as a feed ingredient and has other industrial uses.