Economic and Co-operative Development Minister Janice MacKinnon today announced Strategic Initiatives Fund support of $450,000 over three years to AgrEvo Canada in Saskatoon. Funding will be used to develop new methods of breeding hardier varieties of wheat.

"We're committed to supporting research and development in Saskatchewan," MacKinnon said.
"This funding will support research into varieties of wheat that are suited to the Saskatchewan
environment and current market needs."

"Our innovative and efficient farmers grow the best wheat in the world - wheat still remains one of
our major exports. Research that creates higher-yielding, more resistant strains of wheat helps us
maintain our competitive edge, and will result in more income for farmers and more agricultural jobs for Saskatchewan people."

The techniques AgrEvo will use has been successfully applied to other crops such as canola. A
wheat hybrid that is more drought-resistant, insect-resistant and protein-rich, is expected to
command premium prices.

Malcolm Devine, AgrEvo Canada's manager, biotechnology research, said, "AgrEvo already has
efficient molecular hybrid systems for corn, canola and a number of other crops. Our systems give the crop a higher level of hybrid vigor and can be applied to more crops than conventional hybrid systems. Higher yields, and a more reliable system for the addition of other traits of interest in Saskatchewan, are the result. This system has already achieved market success in canola."

The government's Strategic Initiatives Fund, from which this project is being assisted, encourages
the development of new technologies and research capacity in Saskatchewan. Administered by
Saskatchewan Economic and Co-operative Development, the fund is designed to enhance
Saskatchewan's competitiveness and assist in the development of new, value-added products.

"The AgrEvo project is an excellent example of how the Strategic Initiatives Fund is designed to
work," MacKinnon said. "By supporting Saskatchewan's research and development opportunities,
we are continuing to build one of the most important sectors of our economy - agriculture - and
create jobs for Saskatchewan people."

Company news release
N1787