Des Moines, Iowa
August 26, 2003

One-of-a-kind evaluation tool and elite hybrids have potential to spur farmer & ethanol industry bottom-line

Not all corn hybrids are created equal. In dry-grind ethanol production, as with other end-use markets, certain hybrids outperform others. An innovative evaluation tool introduced by Pioneer Hi-Bred International, Inc., helps the company identify its best corn hybrids for ethanol production to help farmers and end-use markets maximize product value and profit margins.

The Pioneer whole-grain Near Infrared (NIR) rapid assay, or testing method, is the first-ever analytical tool specifically designed to quickly quantify the ethanol yield potential of corn grain. The rapid assay, combined with Pioneer's extensive hybrid evaluation program, enables Pioneer to identify corn genetics -- such as High Total Fermentables (HTF) or HTF hybrids -- that are better suited for dry-grind ethanol production. Using this information, Pioneer can recommend to customers which of its high-performing elite hybrids has potential to result in above-average ethanol production -- which may result in higher revenue.

By combining performance data from these evaluations with the company's knowledge of where products are sold, Pioneer is able to tailor specific hybrid information for a given location of an ethanol facility. The rapid assay analytical tool has already helped the company identify 60 HTF hybrids for use in dry-grind ethanol production in 2004.

Pioneer is also making its crop evaluation tool available to the industry for a point-of-sale assay of commercial grain, enabling ethanol producers to predict the value of corn grain for ethanol production by identifying HTF grain arriving at their facility.

The proof is in the pudding, or the ethanol "solution" so to speak. According to Pat Hilliard, Pioneer ethanol account manager, in commercial trails individual Pioneer hybrids identified as HTF have been shown to increase ethanol yield by up to four percent in dry-grind production over utilizing commodity corn -- or corn that has not specifically been selected for the ethanol end-use market.

"For example, a dry-grind facility producing 40 million gallons of ethanol a year could realize a $1 to $2 million increase in revenue from solely using HTF-identified hybrids," said Hilliard. "Even if you're not a farmer or active in the ethanol industry, as long as you live in a community or state with an ethanol facility, you have the potential to benefit.

"On an annual basis, the income generated by an ethanol plant of this size could pass along several economic benefits to the community where it is located -- benefits such as an expanded economic base of up to $110.2 million or as much as $1.2 million in new tax revenue for state and local governments, not to mention the additional revenue generated for local farmers by increasing demand for their crop."

In 2003, the ethanol industry is expected to produce more than 2.7 billion gallons -- up from a record annual production of 2.13 billion gallons in 2002. Currently 73 ethanol plants produce the renewable, environment-friendly fuel, with another 13 plants under construction.

"Rapid growth continues to dominate the ethanol market," contends Hilliard. "Even more ethanol facilities will be needed to keep up with demand if the Renewable Fuel Standard currently being considered by Congress is approved."

Based on provisions within the Renewable Fuel Standard, if passed, the use of ethanol would double in 10 years, elevating ethanol's share of the U.S. corn crop from 10 percent to 20 percent.

Although the identification of grain offering above-average ethanol production may appear simple, it is actually a complex, time-intensive process. "To arrive at this point, Pioneer has invested more than five years and countless hours perfecting its end use product offering for dry-grind ethanol production -- analyzing more than 15,000 grain samples for ethanol yields over a three-year time period," said Doug Haefele, senior research scientist for Pioneer. "Innovations derived from Pioneer research, such as our rapid assay and elite hybrids, will be important contributors to improvements within ethanol production as the industry moves forward."

Walking the Talk

Backing the research and innovation for the ethanol industry is the Pioneer commitment to promote the use of ethanol when and where possible. As a long-standing industry advocate, Pioneer asks employees to use this alternative fuel in its fleet of approximately 1,600 corporate-owned and leased vehicles. In addition, employees are also encouraged to use ethanol-blended fuels in privately owned automobiles and gasoline-run equipment, such as lawnmowers and generators, in accordance with manufacturer recommendations.

As part of its latest corporate ethanol promotion, Pioneer employees will have the opportunity to test their ethanol knowledge for the chance to win one of 25 individual prizes of a free tank of ethanol-blended fuel or one of five grand prizes of free ethanol-blended fuel for a year.

This commitment complements the Pioneer biodiesel policy, announced earlier this year, to use biodiesel blends in its farm and tractor equipment and over-the-road diesel vehicles, where available. Both initiatives not only support agriculture by increasing demand for farmer-grown crops, but also help support a healthier environment through the use of renewable, cleaner burning fuels.

Through efforts such as its ethanol commitment and biodiesel policy, Pioneer is actively working to help achieve DuPont environmental goals to become a more sustainable company by increasing the use of renewable resources, therefore reducing its environmental footprint, by 2010.

Pioneer Hi-Bred International, Inc., a subsidiary of DuPont, is the world's leading source of customized solutions for farmers, livestock producers, and grain and oilseed processors. With headquarters in Des Moines, Iowa, Pioneer provides access to advanced plant genetics, crop protection solutions, and quality crop systems to customers in nearly 70 countries.

The DuPont Agriculture & Nutrition platform employees 12,500 people worldwide and leverages biotechnology and food value chain knowledge to increase the quality, quantity and safety of the global food supply. Sales for 2002 in production agriculture, crop protection, and nutrition and health were $4.5 billion.

DuPont is a science company. Founded in 1802, DuPont puts science to work by solving problems and creating solutions that make people's lives better, safer and easier. Operating in more than 70 countries, the company offers a wide range of products and services to markets including agriculture, nutrition, electronics, communications, safety and protection, home and construction, transportation and apparel.