ADM To Process Monsanto's VISTIVE™ Low Linolenic Soybeans At Indiana Facility
ST. LOUIS (Jan. 12, 2006) - Monsanto and Archer Daniels Midland Company (ADM) announced today that ADM will process Monsanto's VISTIVE™ low-linolenic soybeans in 2006 at its facility in Frankfort, Indiana, and will market the low-linolenic soybean oil for use by the food industry. VISTIVE low-linolenic soybeans will reduce the need for partial hydrogenation of soybean oil, helping food companies reduce the presence of trans fatty acids (trans fats) in their products.
For the 2006 growing season, ADM will be contracting with growers in Indiana for up to 40,000 acres of VISTIVE soybean production. ADM will pay a premium to producers who grow VISTIVE soybeans under contract. Then it will crush and sell the processed soybean oil to food companies.
VISTIVE soybeans, developed through conventional breeding, contain less than three percent linolenic acid as compared to the typical eight percent level found in traditional soybeans. The result is a more stable soybean oil, with less need for hydrogenation. Because soybeans with a lower linolenic acid level reduce the need for partial hydrogenation, their application in processed soybean oils will reduce the presence of trans fats in processed soybean oil.
The development of VISTIVE is significant because, as of January 1, 2006, all food products and dietary supplements bearing a nutritional facts panel that are regulated by the U.S. Food and Drug Administration and sold in the United States are required to list trans fat content. Kellogg Company, for instance, recently announced that it will use oil from VISTIVE low-linolenic soybeans as part of a major initiative to reduce or eliminate trans fats in a number of its products.
"Low-linolenic soybean oil developed from VISTIVE soybeans will be a valuable addition to ADM's NovaLipidTM portfolio of zero/low trans fat products," stated Tedd Kruse, ADM Vice President-North American Food Oils. "As the essential link between farmers and food manufacturers, ADM is pleased to work with American farmers to create additional value for their products while at the same time providing food manufacturers with healthier ingredients."
NovaLipid products are ADM's line of zero/low trans fat shortenings, margarines and oils. The NovaLipid portfolio includes naturally stable oils, tropical fats and oils, blended oils, and enzyme interesterified shortenings and margarines to provide alternatives in various food applications, including baking, confectionery, snack, frying and cereal products. The line was developed in 2003 in response to customer and consumer demand for healthier fats and oils.
"We contracted all available VISTIVE soybeans in 2005, so we know that this product is in demand. We are very pleased to partner with an industry leader like ADM to ensure a successful expansion of VISTIVE soybeans in 2006," said Ernesto Fajardo, Vice President of U.S. Crop Production for Monsanto. "VISTIVE not only supports growing consumer demand for healthier foods, but also represents an important investment in the future success of the U.S. soybean industry. In addition, this agreement expands the growing area for VISTIVE, giving more farmers the opportunity to grow this value-added soybean."
Monsanto expects that VISTIVE soybeans will be grown on nearly 500,000 acres in 2006, primarily in Iowa, Indiana, Michigan, Minnesota, Nebraska and South Dakota. VISTIVE soybeans have the Roundup Ready® trait and maintain performance parity with other commercial soybean varieties. For 2006, VISTIVE will be available in Monsanto's Asgrow® brand, as well as Stine®, Prairie™ Brand Seed, Latham® Seed, Kruger™ Seed Company, CROPLAN Genetics®, FS HiSOY®, LG® Seeds, Producers Hybrids®, Midwest Seed Genetics®, Crow's® and NC+® seed brands.
Specific information regarding grower opportunities and contract details will be available from ADM in the near future.
Archer Daniels Midland Company (ADM) is a world leader in agricultural processing. ADM is one of the world's largest processors of soybeans, corn, wheat and cocoa. ADM is also a leader in the production of soy meal and oil, ethanol, corn sweeteners and flour. In addition, ADM produces value-added food and feed ingredients. Headquartered in Decatur, Illinois, ADM has over 25,000 employees, more than 250 processing plants and net sales for the fiscal year ended June 30, 2005 of $35.9 billion. Additional information can be found on ADM's Web site at http://www.admworld.com.
Monsanto Company is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality. For more information, please visit: www.monsanto.com.
Asgrow®, Roundup Ready®, VISTIVE™, Crow's®, NC+® and Midwest Seed Genetics® are trademarks of Monsanto Technology LLC or of a Monsanto affiliated company. All other trademarks are the property of their respective owners. ©2006 Monsanto Company.