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Pioneer announces Litchfield seed production facility expansion at Open House
Litchfield, Illinois
Aug. 5, 1999

Pioneer Hi-Bred International, Inc., officially announced an expansion of its Litchfield, Illinois, seed production facility with an open house today. Located eight miles south of Litchfield, the facility was expanded last year to double its production of soybean seed.

The expansion allows the Pioneer facility to produce 2.4 million units of soybeans to better serve the needs of soybean producers. The additions include a new conditioning tower, new conditioning equipment, remodeled receiving area, warehouse expansion and remodeled office space. The total investment was about four million dollars.

In addition to soybeans, the plant also annually cleans, treats and bags a half million units of seed wheat.

The facility produces soybean seed primarily for the Group IV and V maturity groups. In 1999, Pioneer has contracted 69,000 acres of soybeans among regional growers, the largest production acreage of soybeans ever contracted at a single location. Running at full capacity, the plant can condition and bag 21,000 "units" -- 50-pound bags of soybeans -- a day. The plant distributes seed to a wide area, including southern Illinois, eastern Missouri and several areas in the South.

"Demand for Pioneer brand soybeans has been growing at an incredible rate," said Tom Hall, Litchfield plant manager. "The Litchfield plant is an example of our efforts to deliver a broad line-up of top-performing, high-quality seed to Pioneer customers. We're doing what it takes to stay ahead of the demand for soybean genetics available from Pioneer."

Pioneer is the leading soybean seed brand in North America and has been for nine years. The estimated North American market share for Pioneer brand soybeans has grown to 19% in 1999 from 13.5% in 1990.

The Litchfield facility is only one example of the commitment Pioneer has made to soybean growers across the Cornbelt. Recently, Pioneer opened a new soybean production plant in Cherokee, Iowa, and will open a new $8.5 million soybean facility in Woodhull, Ill. The company has made extensive upgrades and expansions at its Chatham, Ontario, Canada site. In addition, warehouse space was recently added to Cherokee; Renwick, Iowa; Jackson, Minnesota; Wahpeton, North Dakota; Tipton, Indiana; and Grand Rapids, Ohio, locations in 1998. Other commercial Pioneer soybean seed facilities serving the North American Cornbelt include LeRoy, Illinois, which was expanded in 1996, and Hedrick, Iowa.

"The Litchfield plant was expanded for several reasons," said Hall. "First, and most importantly, we wanted to provide better service to our customers throughout the region. We also wanted to expand contracting of our soybean acres with progressive growers who are willing to diversify and accept challenges. In addition, the lighter soils in this area are less susceptible to disease and, therefore, capable of producing high-quality soybeans. It's a top-notch facility in a top-notch location."

Pioneer Hi-Bred International, Inc. 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, forage and grain additives and
services to grain and livestock producers, grain processors and other customers worldwide.

Company news release
N2036

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