Mid-Missouri Energy: Ethanol from Corn

Case Solution

Forest L. Reinhardt, Noel Michele Holbrook, James Weber, Karla Sartor
Harvard Business School ()

MME is an agricultural cooperative that produces ethanol from corn. The cooperative performed well compared to other manufacturers, but margins in the industry had declined as the industry’s production levels approached the limits of market demand. MME farmers had to decide whether to build on its success and expand through acquisitions, whether to sell the plant or continue operations. MME must consider the ongoing regulatory changes affecting the industry, the potential impact of imported ethanol, the power of the oil industry that bought its product, and the ongoing uncertainty about corn and ethanol price volatility.

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