Under the agreement, Gavilon will be the ethanol plant’s corn supplier, and ethanol and distillers dried grains with solubles (DDGS) marketer, effective today.
Heron Lake CEO Robert Ferguson said Gavilon will act as a strategic partner to manage both the ethanol plant’s marketing and procurement needs.
"Gavilon offers a comprehensive solution that will help us achieve our risk management objectives in a competitive market," Ferguson said.
Gavilon Ethanol Services director Randy Ives said the contract leverages will enable Heron Lake to reduce their working capital requirements and more effectively manage their processing margins in both the spot and forward markets.
Heron Lake procures about 18 million bushels of corn per year for its dry mill ethanol process and produces about 50 million gallons of ethanol and 160,000 tons of DDGS.
