Overview

• The US-UK trade deal eliminated British tariffs on US ethanol, introducing a 1.4 billion litre import quota that jeopardizes the UK's bioethanol sector.
• Industry leaders warn that domestic bioethanol plants in Yorkshire and Teesside may close without urgent regulatory adjustments, risking hundreds of jobs and thousands in supply chains.
• The potential collapse threatens the UK’s production of carbon dioxide and high-protein animal feed, critical by-products of bioethanol manufacturing.
• Farmers face the loss of a key market for lower-grade wheat, which could lead to increased reliance on lower-priced exports and higher costs for imported animal feed.
• Government officials have met with ABF Sugar and Ensus to address regulatory imbalances, but industry leaders stress the need for swift intervention to prevent irreversible damage.