CASCO to pay grower premium for Processor Preferred corn
hybrids that deliver enhanced value for sweetener production
Monsanto
announced today that CASCO
Inc., Canada’s principle producer and supplier of
corn-refined starches, sweeteners, oil and feed products,
plans to pay a premium for grain from corn hybrids that have
earned Monsanto’s new Processor Preferred brand designation.
The
Processor Preferred brand was launched at Canada’s Outdoor
Farm Show earlier this month.
Monsanto established
the brand to deliver grain with compositional value to
processors and to unlock value for growers. “Monsanto has
invested heavily in the research required to identify and
develop Processor Preferred products,” says Dan Wright,
Trait Marketing and Stewardship Manager from Monsanto.
“We’re very excited about CASCO’s commitment and we feel
it’s the first of many opportunities to further enhance the
value of corn and soybeans and change the way these crops
are marketed.”
CASCO
Commodity Purchasing Manager Shelley Wybo indicated that the
company intends to pay a 10-cent-per-bushel premium for a
one month supply of grain from select DEKALB®
and Pride® Seeds hybrids that have been
designated Processor Preferred.
“We’re very interested in
finding ways to make our plants more efficient and our
testing of Processor Preferred corn hybrids has indicated
positive results,” says Wybo. In 2003, CASCO tested specific
DEKALB hybrids developed by Monsanto that produce
higher
levels of extractable starch – a key component in CASCO
sweetener production. These tests showed evidence of
increased yield of extractable starch per unit of corn. Wybo
also notes that using a more uniform corn supply required
fewer production process adjustments than using regular
feedstock as a corn source. The test also provided evidence
that corn hybrids could be effectively segregated along the
supply chain.
“We also intend to do more
testing in February to further determine the value Processor
Preferred grain provides. Those results will provide insight
on how we can structure programs in the future,” says Wybo.
South West Ag Partners, Cargill AgHorizons, Hensall District
Co-op and Hutton Farm Supplies will work with growers to
contract production for the CASCO program.
Wright
notes that further testing will also determine the value
Processor Preferred hybrids provide ethanol producers who
require higher levels of fermentable starch to enhance
ethanol production.
"We are
excited about the possibilities that Processor Preferred
hybrids could contribute to the efficiency of our ethanol
plants,” says Mark Schwartz, Business Development
representative for Chatham-based ethanol producer Commercial
Alcohols Inc. “This first step is essential in bringing the
ethanol industry to the next level."
Monsanto scientists confirm
the value of Processor Preferred products using the
company’s two world-class Crop Analytics Laboratories – the
only labs in the world to receive ISO 17025 certification
for grain analysis.
“In the future, we hope to
further increase hybrid end-use performance by combining
biotechnology and our knowledge of genomics to genetically
enhance corn hybrids and soybean varieties that will provide
even more value to end users. That also means new
opportunities for growers,” says Wright.
In the short term, Monsanto’s
goal is to breed hybrids that provide greater than 3% highly
fermentable or extractable starch over the industry average.
In the long term, the company intends to
breed hybrids that provide
greater than 8% over the industry average.
"OCPA has
been in support of this initiative since its inception,”
says Ryan Brown, Production Issues Manager with the Ontario
Corn Producers' Association. "We will continue to drive
projects which place added value into our members’ pockets.
These programs have the potential to change a traditionally
commodity-based industry and consequently, the future of
corn marketing in Ontario."
Several seed companies are now
working together to bring new output traits to growers under
the Processor Preferred brand. "We are extremely pleased
that Pride Seeds will be a participant in this program,"
says Jim Simon, President of Pride Seeds. "It has been a
strategic goal within the corn industry in Ontario to foster
the value added use of corn through industrial processing.
By working with processors to improve their production
efficiencies, we are supporting the future growth of value
added corn processing in Ontario."
Monsanto Seed Marketing
Manager Jamie Rickard notes that having DEKALB hybrids earn
the Proccessor Preferred designation reflects the continuing
evolution of the DEKALB product line-up. “We’re excited
about the next step in corn development and we feel DEKALB
seed products are well positioned to help both processors
and growers capture more value.”
For more information on
Processor Preferred products, growers should contact their
local DEKALB or Pride Seed dealer.
Monsanto is a leading global
provider of technology-based solutions and agricultural
products that improve farm productivity and food quality.
Processor PreferredTM , Monsanto
Imagine and the Vine Design are trademarks of Monsanto
Technology LLC., Monsanto Canada Inc., licensee.
DEKALB® is a registered trademarks
of DEKALB Genetics Corporation.
Pride® is a registered trademark
of Limagrain Genetics, Inc.
