MME is a farmer-owned cooperative that produces ethanol from corn. The cooperative has good compared to other manufacturers, but the margins in the industry had declined as industry production levels approached market demand conducted limits. MME farmers needed to decide whether to take advantage of their success and to expand through acquisitions, whether to sell the facility, or whether to continue the current operation. Must consider MME ongoing regulatory changes that affected the industry, … Read more »

MME is a farmer-owned cooperative that produces ethanol from corn. The cooperative has good compared to other manufacturers, but the margins in the industry had declined as industry production levels approached market demand conducted limits. MME farmers needed to decide whether to take advantage of their success and to expand through acquisitions, whether to sell the facility, or whether to continue the current operation. Must consider MME ongoing regulatory changes that affected the industry, the potential impact of imported ethanol, the power of the oil industry, who bought their products and the continuing uncertainty about corn and ethanol price swings.
To maximize their effectiveness, color cases should be printed in color.
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from
Forest Reinhardt,
Noel Michele Holbrook,
James Weber,
Karla Sartor
Source: Harvard Business School
33 pages.
Release date: 01 November 2010. Prod #: 711004-PDF-ENG
Mid-Missouri Energy: Ethanol from corn HBR case solution

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