“We look forward to working with a strategic partner to manage both our marketing and procurement needs,” said Robert Ferguson, chief executive officer of Heron Lake. “Gavilon offers a comprehensive solution that will help us achieve our risk management objectives in a competitive market.”
“We are extremely pleased to be selected as Heron Lake’s exclusive provider and marketer of the ethanol plant’s inputs and outputs,” said Randy Ives, director of ethanol services at Gavilon. “This agreement leverages our core capabilities and 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 approximately 18 million bushels of corn per year for its dry mill ethanol process and produces approximately 50 million gallons of ethanol and 160,000 tons of DDGS.