Indianapolis, Indiana
September 21, 2004
Before considering the right
hybrids to use next season, growers need to determine which
market they want to participate in, according to Bruce Due,
District Agronomist for Mycogen
Seeds.
The increasing use of healthy
oils may shift some growers' decisions on which markets to get
into, Due says. "Growers who are contracted generally have the
hybrid already chosen by the buyer. For example, most buyers
choose the 7240 and 7350 hybrids when contracting with oleic
growers because the oil qualities are ideal. For growers on the
open market, there is a wide range of hybrids from which to
select that carry many different end-market intended uses," he
explains.
When deciding which segment to
participate in, growers need to focus on net income. "Growers
need to ask themselves, 'What product can I put on my farm
that's going to provide me with the greatest net income per
acre?'" Due says.
This means that growers need
not only consider total yield, but oil content as well. "Oil
content is particularly important when participating in the
confection, hulling and oil markets. In 2005, Mycogen will be
introducing hybrids with traits that have the ability to produce
50 percent or more oil content," Due says. "This will help
growers earn up to 20 percent premiums on their profits," he
explains.
The huller market also has
specific products that work well in that industry. "Mycogen
8D310 is an example of a product designed specifically with that
market in mind. The confection market has also developed
specialty products for in-shell use and for hulling purposes,"
Due explains.
The oil market in particular is
growing due to the trend toward healthy oils. "Many major food
processors this year plan to switch processing production to
using NuSun™ or oleic because of its low saturated fat," Due
explains. "In fact, there is a higher demand for these oils than
what current growers can supply."
In addition to their high
quality, NuSun and oleic oils don't require hydrogenation for
food processing, which makes them more attractive than palm,
coconut and soybean oils to processors. "Consumers will further
drive this growth as food labeling laws change. Some day soon,
health-conscious consumers will be able to see if a high-quality
oil is used in a food's processing before making their
purchasing decisions," Due says. |