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Healthy oil market provides new domestic opportunities for sunflower producers - Pioneer introduces three seed products for the NuSun oil market
Des Moines, Iowa
February 4, 1999

Demand from the fast food and baking industries for a healthier oil is creating new market opportunities for U.S. sunflower producers who are willing to try something new. NuSun* or "mid-oleic" oil is quickly becoming the oil of choice, and mid-oleic hybrids for this product are commercially available for spring 1999 planting.

"Mid-oleic sunflower hybrids produce a healthier oil that will provide U.S. sunflower producers with access to the U.S. oil market," says Paul Erickson, general manager for Cargill Oilseed Processing, West Fargo, N.D. "As a result, mid-oleic sunflowers will enjoy more consistent demand than conventional sunflowers."

That’s good news for U.S. sunflower producers who have been dependent on volatile exports for about 80 percent of their market. According to the National Sunflower Association, most of the 3 million acres of sunflowers planted annually in the U.S. will be converted to production of mid-oleic sunflower by the next planting season. About 500,000 acres are expected to be converted this season. "NuSun" is the trade name that has been developed by the National Sunflower Association for this new class of sunflower oil.

Although mid-oleic sunflower hybrids used to produce NuSun oil have a unique oil profile, they are similar to traditional hybrids in maturity, pounds per acre and oil yield.

Agronomics and performance are good

Pioneer Hi-Bred International, Inc., is offering three mid-oleic products for the NuSun oil market for 1999 planting.

"We’ve seen outstanding agronomics and performance in Pioneer products 63M80, 63M91 and 64M01, the three new mid-oleic sunflowers available from Pioneer this season," says Jim Atkinson, product manager in Des Moines, Iowa. "We had more than 500 acres of field trials in 1998, ranging in size from small research blocks a few feet in length to commercial fields of 30
acres or more. All three products exceeded our expectations.

"Yield, oil content, oleic levels and defensive traits of the products were strong. These products also are some of the earliest mid-oleic products being offered by the industry this year, and they will allow movement of mid-oleic oilseed acreage into some shorter-season areas of northern North Dakota and northwestern Minnesota," Atkinson adds.

Strong interest and market opportunities

Cargill’s Erickson says U.S. oil buyers, as well as sunflower producers, have expressed significant interest in mid-oleic sunflower for the NuSun oil market. Oil buyers want the stability and longer shelf-life of NuSun oil without the trans fatty acids that are in hydrogenated oils such as soy or canola. And growers find contracts appealing because they reduce growers’ risk, provide market alternatives and contribute to a rapid conversion of this strategic oilseed crop.

"NuSun oil can provide growers with a strategic advantage because it is creating demand for a crop that hasn’t been particularly important to domestic markets," says Erickson. "Other oilseeds are working to develop mid-oleic varieties, but they face significant challenges. Sunflower producers are at an advantage to capture the U.S. mid-oleic market first since the sunflower industry has already developed a more stable oil."

Robin Anderson, oil merchandiser for AgGrow Oils in Carrington, N.D., says her company will offer a premium for mid-oleic sunflower. The contract price has not yet been set for 1999 production, but Anderson says growers will benefit from increased domestic demand.

The NuSun oil produced from mid-oleic sunflowers will have an oleic acid level ranging from 50 to 70 percent, compared to oil from traditional sunflower with oleic acid levels around 20 percent. Because it contains only a trace of linolenic acid, NuSun oil needs no hydrogenation and can eliminate the concern over trans fatty acids in prepared foods. NuSun oil also is lower in saturated fats than conventional sunflower oil.

Growers interested in growing mid-oleic sunflower for the growing NuSun oil market should visit their local Pioneer sales professional for help selecting the product right for their farm. More information on the entire lineup of Pioneer brand products is also available by checking the Pioneer worldwide Web site: http://www.pioneer.com.

Pioneer Hi-Bred International, Inc., (NYSE-PHB) is the world's leading supplier of agricultural genetics and is the leading developer and integrator of agricultural technology. Headquartered in Des Moines, Iowa, Pioneer develops, produces, and markets a full line of seeds, grain/forage additives and services to grain and livestock producers, grain processors and other customers worldwide.

®Registered trademark of Pioneer Hi-Bred International, Inc., Des Moines, Iowa
*Certification mark of the National Sunflower Association, Bismarck, North Dakota

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