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Tractor Talk Discussion Board |
Re: E85 and what will burn it????
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Posted by john in la on September 03, 2006 at 11:06:11 from (72.150.50.241):
In Reply to: Re: E85 and what will burn it???? posted by NcNE on September 03, 2006 at 10:26:13:
NcNE; I do not want to sound like I am picking or poking at you but you brought up the question. What makes you or anyone for that matter think that if I owned a ethanol company and it cost me 50¢ a gallon to make my product; that I am going to sell this product for 60¢ a gallon and make 1 million dollars profit a year when the market will bare $2.00 a gallon for my product and I can make 100 million profit. Supply and demand rules and may even be our demise one day. This is the reason farmers will all ways be poor. It is to cut throat and to easy to get started in if a profit can be made. Where as big companies like oil need very large start up cost so not every Joe can get started in it. They can then charge what they want. E85 was cheaper because the demand was lower because everyone could not use it. But once more and more demand is created for E85 the price will level out to the same as gas or a few cents less.
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