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CASCO and Commercial Alcohols Inc. to expand testing of DEKALB enhanced value hybrids
Guelph, Ontario
March 9, 2004

Encouraged by initial testing results, CASCO and Commercial Alcohols Inc. will expand testing of DEKALB enhanced value corn hybrids to clearly define the ethanol and sweetener production efficiency they can achieve from using these hybrids.

In 2003, the two companies agreed to test specific DEKALB hybrids developed by Monsanto that produce higher levels of fermentable and extractable starch - key components in Commercial Alcohols ethanol production and CASCO sweetener production. These tests showed evidence of increased yield of fermentable or extractable starch per unit of corn, but further testing is required to provide a thorough assessment. Higher fermentable or extractable starch translates into higher yields of ethanol or sweetener, which would increase production efficiency. The companies also noted that using more uniform corn supply required fewer production process adjustments than using regular feedstock as a corn source. The pilot project also provided evidence that corn hybrids could be effectively segregated along the supply chain.

In 2001, Monsanto established a program designed to use state-of-the-art grain analytics technology to mine its germplasm and identify enhanced value corn hybrids. Using this technology, Monsanto identified hybrids that deliver a higher level of fermentable and extractable starch that could provide specific benefits for ethanol and sweetener production.

"Monsanto has invested heavily in this research and we're excited about the testing partnership we've forged with CASCO and Commercial Alcohols," says Dan Wright, Trait Marketing and Stewardship Manager from Monsanto. "It is a great opportunity to work together to find increased value for the plants, seed dealers, growers and Monsanto."

In the next phase of testing, both CASCO and Commercial Alcohols will run month-long tests using corn harvested from DEKALB hybrids in 2004. "These hybrids are currently in our commercial product line-up and have already passed our rigourous screens for agronomic performance," says Wright. Select grain elevators will approach their customer base and ask growers to produce specific hybrids under contract production. Growers will be paid a premium and grain elevators will administer the contracts and manage the grain required to complete the pilot project.

South West Ag Partners and Cargill AgHorizons will contract production for the Commercial Alcohols test. Norfolk Co-op, Hensall District Co-op, Hutton Farm Supplies and Cargill AgHorizons will contract production for the CASCO test.

Commercial Alcohols Business Development representative Mark Schwartz says the Chatham-based company is excited about the opportunity to make ethanol production more efficient and potentially increase the penetration of ethanol in the fuel blend market.

"We were happy with the positive signs the test showed and look forward to expanding the testing," says Schwartz. "It's a big commitment to run a pilot project of this size, but the longer testing period will provide very accurate results and will help determine the impact ethanol-friendly corn has on our Chatham plan." He adds that the company is very interested in the concept of partnering with local growers to secure a supply of high quality, enhanced value corn for the facility.

CASCO has plans to test the DEKALB hybrids at its London plant, says CASCO Commodity Purchasing Manager Shelley Wybo. "We're very interested in finding ways to make our plants more efficient and we're looking forward to working with Monsanto and Ontario corn growers to make that happen." A one-month test will help define exactly how sweetener-friendly corn affects the plant, and what that might mean in premiums long term for growers, says Wybo.

Monsanto is currently working to determine which of its current products can deliver enhanced value to processors and growers, says Monsanto Seed and Trait Commercial Lead Rob Hannam. "In the future, we hope to further increase hybrid end-use performance by combining biotechnology and our knowledge of genomics to genetically enhance hybrids that will provide even more value to ethanol and sweetener producers. That also means new opportunities for growers."

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.

Monsanto is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality.

From a press release via Agnet March 10/04

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