Golden Valley, Minnesota
April 19, 2007
 Even
with farmers planting a projected 90 million acres of corn this
spring, it's going to take coordination from the entire
production and marketing chain to meet demand for corn-based
ethanol along with food and livestock feed demands, says Jeff
Cox (photo), Global Head of
Syngenta Corn and Soybeans.
Forecasting a new era in corn production, Cox says, “Syngenta is
singularly focused on providing U.S. growers with the most
effective choices in seed genetics, seed traits and crop
protection products to help America’s farmers capture as much
value as they can from this expanding corn market.”
As corn planting gets underway in the Midwest, Cox offers his
viewpoints on an industry that is likely changing forever.
Q: Why are you forecasting “a new era
in corn production?”
A: Today’s corn market is vastly different from even just one
year ago. Skyrocketing demand for ethanol offers tremendous
domestic marketing opportunities for growers, as well as
exciting economic opportunities for rural communities. From the
field to the processor, the dynamics of corn production and
marketing are changing fast, and this requires everyone along
the value chain – from the seed supplier, to the grower, to the
grain marketer – to think about our product differently. Corn
has advanced from a low-tech commodity to a high technology,
high-value, high-demand product.
Q: How will these market changes affect
growers?
A: Growers are being challenged to produce more grain, more
cost-effectively, to feed more markets, including domestic
demand for ethanol, livestock feed and food products. Those of
us who help growers produce and manage the grain supply are also
being challenged to provide the best tools and technology
available to meet demand and ensure that growers capture as much
value as possible from burgeoning markets.
Q: What is Syngenta’s role in this new
era?
A: This new grain marketing environment requires adaptation from
every one in the value chain – from suppliers to growers to
grain marketers. At Syngenta, we are stepping up our efforts and
timetables to get needed technology into the hands of our
primary customers: U.S. growers.
We are working diligently to help growers use our new technology
in genetics, traits and crop protection to increase the yield
and quality of their crop. Specifically, we have doubled our
production of seed with stacked traits through our fast-track
breeding programs in Hawaii and Puerto Rico. Most of this seed
contains new trait combinations we did not have last year, such
as Agrisure™ RW.
Q: What is the significance of Agrisure
RW and how is it being used by growers this year?
A: Agrisure RW provides built-in control of corn rootworm, a
devastating corn pest that robs millions of bushels of yield
each year. Upon receiving full U.S. approvals we brought this
new technology to market in time for 2007 planting. With
approvals pending in major export markets, we are requiring
growers to develop domestic marketing plans for any grain that
contains Agrisure RW. Growers must sign agreements to deliver
grain to domestic use outlets. We are also working with grain
buyers, such as ethanol plants and livestock producers, to
assist growers in identifying suitable destinations for routing
their grain to booming domestic markets.
Q: Why are you marketing Agrisure RW
prior to grain export approvals?
A: Growers have been anticipating this Syngenta rootworm trait
for years. Agrisure RW is a new technology choice, now fully
approved to plant in the U.S. Growers have the freedom to choose
to plant this technology, but only if they can commit to
marketing the grain to domestic uses that do not export grain or
by-products. These include ethanol production, or livestock
feed.
The spillover effect of the ethanol boom is already putting
tremendous pressure on the livestock industry, with the cost of
feed grain escalating. We at Syngenta believe it is important to
market this yield-enhancing technology this season, not only so
our customers can capitalize on the ethanol boom, but also for
the livestock industry, which also benefits from high corn
production.
Q: How do you respond to those who
challenge Syngenta’s decision to market hybrids with Agrisure RW
in the U.S. prior to approval by Japan and other export
customers?
A: We are motivated by our responsibility to play our part in
creating value for the American farmer and supporting the
resurgence of economic growth in rural America. The American
corn grower needs access to the very latest science has to
offer, such as Agrisure RW.
Syngenta aggressively seeks export market approvals for our
products in all major export market and we respect that other
countries should have the right to choose their own regulatory
requirements, systems and timelines for approvals. However,
their choices should not dictate the technology choices the
American farmer has for producing ample grain to supply the
expanding U.S. domestic market.
Gone are the days when grain marketers could dig into a huge,
undifferentiated stockpile of Number 2 yellow corn to supply
every market. Grain marketers and traders have the ability to
source grain or Identity Preserve Grain for specific customers
in a more segmented world market. . This is how growers can
capture value.
Q: What are some of the emerging
Syngenta technologies that will help growers capture value from
the market?
A: The need for alternative fuels is a long-term reality, and
agriculture will be on the front line. It’s an exciting, and
dynamic, new world. Technology in genetics and traits will be
key to helping growers meet the feed and fuel demand. Syngenta
has a rich pipeline of traits to help our customers meet this
demand, including our corn amylase trait for more efficient
ethanol production. Pending U.S. regulatory approvals, hybrids
with this trait should be available for planting in 2008, and
this will offer growers another value-added marketing option.
Also in the pipeline are traits that offer complete insect
control, including broad lepidopteran species; improved nitrogen
utilization in corn, which will be crucial for growers who
convert their acres to more corn-after-corn production; and
traits to enable corn to be more drought tolerant to deliver
optimum yields in more stressed conditions.
At Syngenta, we’re excited to do our part in helping the grower
by responsibly providing innovative, timely technology for the
new era of corn production.
Syngenta is a world-leading agribusiness committed to
sustainable agriculture through innovative research and
technology. The company is a leader in crop protection, and
ranks third in the high-value commercial seeds market. Sales in
2006 were approximately $8.1 billion. Syngenta employs around
19,500 people in over 90countries. Syngenta is listed on the
Swiss stock exchange (SYNN) and in New York (SYT). Further
information is available at www.syngenta-us.com Syngenta is
listed on the Swiss stock exchange (SYNN) and in New York (SYT).
Further information is available at
www.syngenta.com.
Agrisure™ is a trademark of a Syngenta Group Company. |
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