Greetings! It is hard to believe that October 2022 is already here! We hope your harvest season has been safe and productive. Harvest is in full swing, as evidenced by the increasing truck and farm traffic all across the state.
At your Carrollton alcohol facility, we continue to work hard to process the area grain into environmentally friendly value added products while adding to the local economy and providing an excellent employment opportunity in the area.
We continue to make significant progress transforming the company into a specialty alcohol producer. During this quarter we set records for production, sales, and shipments of our Grain Neutral Sprits (GNS) products. We are excited to see the continued success in this business unit, and expect these diversification strategies to lessen the impact of the falling fuel ethanol margins.
We continue to operate profitably, though slightly lower than last year primarily due to the increased basis price for grain that has affected much of the industry. Complete financial results are reported on the following page. We are excited that the hard work by the Show Me Ethanol team resulted in the Board of Managers declaring a $5,000,000 distribution to shareholders. Checks were mailed to you in late September, 2022, thank you for your ownership in Show Me Ethanol!
As most of you know, the corn crop across the nation isn’t as good as hoped, and the world balance sheet for corn is tight for crop year 2022/2023. This is creating higher corn basis levels throughout the country, including in Carrollton. Meanwhile, the United States economy is bracing for a slowdown with rising interest rates and lower energy prices. The combination of increased feedstock prices and lower energy prices does not indicate a strong margin environment in the near future.
We are happy to announce a few new additions to the team on another page of this newsletter. Destini Elliot has taken on the responsibilities of being the primary contact for Shareholder contacts. You can contact her at the office or through e-mail at delliott@smealcohol.com.