A new phase in new generation cooperatives in ethanol production: Case study of the State of Minnesota, US
2010
Bannai, H., Rural Finance Research Inst., Tokyo (Japan) | Oe, T.
The production of ethanol has been increasing for these 10 years in the United States because the federal government implements the agricultural policy promoting high value-added agricultural products and the domestic consumption of ethanol is expanding to improve the air condition in the metropolitan areas. For the US which is the strongest agricultural exporter in the world, it is an urgent need to create new high value-added agricultural products in order to establish employments in the rural area and compete against new agricultural exporting countries like Brazil and Argentine in the international grain market, like corn. For that purpose, ethanol can be a very good example. The ethanol production is concentrating on the so-called Corn-belt area like Iowa and Minnesota. In the State of Minnesota, some groups of farmers are actively involved in the production of ethanol and many of them are so-called 'New Generation Cooperatives' that have a closed-membership system and pursues high value-added agricultural products. In the State of Minnesota, ethanol manufacturers, New Generation Cooperatives, have created about 4,000 employments for these 10years thanks to uniqueness of the cooperative and the support by the state governments. Therefore the rural development based on the ethanol production by New Generation Cooperative is a key to success for revitalization of the rural economy.
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