What went wrong at VeraSun?

Agriculture Online
Dan Looker
Successful Farming magazine Business Editor
11/04/2008, 10:02 AM CST

As one of the nation's largest ethanol makers struggles to survive by seeking to reorganize under Chapter 11 bankruptcy, farmers are wondering what went wrong at VeraSun Energy Corporation.

Neither the company's CEO, Don Endres, nor other company officers were available for comment Monday, but one farmer and ethanol competitor sees some factors that may have been unique to VeraSun, while other forces that hurt the company also threaten the entire industry.

"They grew really, really fast, especially in the last two years," Belmond, Iowa farmer Dave Nelson, who is also board chairman of Midwest Grain processors, told Agriculture Online. "Two-thirds of their plants came on line in the last two years."

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