Branson bailing out of ethanol?

May 8, 2008
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British entrepreneur Richard Branson has unloaded a company thatâ??s building two ethanol plants in the U.S., including one near Fort Wayne.

In an interview with Fortune magazine during the peak of ethanol optimism in early 2006, Branson said industry profit margins were running at about 30 percent. â??Fuel is a necessity and it should be a good industry,â?? he said.

Since then, corn has roughly doubled in price and the margins arenâ??t so good.

What does Bransonâ??s exit tell you? And what does the future hold for ethanol?
  • The grass does not appear to be greener on the other side...
  • He could have unloaded it due to bad press surrounding the use of corn to produce ethanol and the way it has contributed to high food costs.......he is a very public figure....
  • Just one more indication of the problems that are caused by the US government meddling in markets, in the case the subsidy of ethanol production.
  • An update from the people at VBV: Branson sold his share in the company a month ago. Either way, he’s out of the ethanol company.

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