High corn prices see off another ethanol plant

Ethanol manufacturer Bunge-Ergon Vicksburg, a JV between Bunge Group and Ergon, is to halt production at its Vicksburg, Mississippi-based plant by the end of the year, resulting in 40 people losing their jobs.

The announcement comes as companies struggle to make ethanol profitable as corn prices continue to rise due the drought in the US Midwest coupled with high demand.

The company says it could restart operations next year once it has reassessed market conditions.

To date, approximately 25 of the nation's 211 ethanol production facilities – or 12% – are laying idle as they struggle to pay between $7-7.50 for a bushel of corn and sell ethanol for around $2.40 per gallon.

The $100 million Vicksburg plant opened in 2008.