Cargill and Bayer CropScience have formed an alliance to produce specialty canola for the supply of high stability oil to Cargill’s food industry customers. This oil does not require hydrogenation and is used by food processors when there is a need to eliminate trans fat and reduce saturated fat content.

The alliance will combine Bayer CropScience’s expertise in producing high-performing, high-yielding seed with Cargill Specialty Canola Oil’s patented technology for producing and utilizing high oleic canola oil. The alliance also intends to collaborate on research to develop other desirable oil traits, with a goal of accelerating the supply of canola varieties that produce high stability oil with improved nutritional composition.

The seed produced by the alliance will be developed from Bayer’s market-leadingInVigor® line of hybrid canola. This will be an additional choice for growers who contract with Cargill through its AgHorizons™ retail business - they will have access to InVigor® hybrids with the LibertyLink® herbicide tolerance system, in addition to Cargill’s own proprietary specialty oil canola seed with Roundup Ready® technology. InVigor® hybrids with these special oil profiles could be released for commercial growing in Canada and the United States as early as 2007.

“With this alliance, we are partnering with the North American canola seed leader to expand choice for growers and assure a consistent supply of identity preserved oil for our growing list of customers seeking to eliminate trans fat and reduce saturated fats,” said Cargill Corporate Vice President Scott Portnoy. “Historically, specialty trait crops haven’t achieved large-scale use due to the complexity of managing the total system from seed research through production to the end user. Bayer and Cargill working together can build a system capable of delivering special characteristics in the volumes necessary for today’s marketplace.”

“It's a win for everyone,” said Ron Dudley, president of Cargill Specialty Canola Oils. “Growers will have the opportunity to produce specialty canola oil under contract with Cargill using InVigor® seed that performs on a par with the rest of Bayer's line. Bayer and Cargill will be allowed to focus on what each one does best, leading to greater efficiency, reduced costs and better value for both growers and our oil customers. Our oil customers can be confident of a reliable supply of trans free, low saturate, high stability oil that can deliver front-of-the package nutritional claims for many applications. Consumers are the ultimate winner from the increase in ‘healthier lifestyle’ products that contain our oil.”

“We are very pleased to have established this collaboration with Cargill, the recognized leader in the supply of oilseed products globally,” added David Morgan, head of Agricultural Crops for the BioScience group within Bayer CropScience. “This provides Bayer an opportunity to participate in a growing market segment. We are convinced the combined portfolio will enhance the reputation of canola as a premier crop.”

The $32 billion global market for oilseed production is estimated to be growing 3 percent per year. Two oilseed crops, soybeans and canola, account for over 70 percent of the 336 million metric ton world oilseed production capacity. Canola oil alone represents an annual market of more than $8 billion. Canola oil is lower in saturated fats than any other oil.

Bayer CropScience, a subsidiary of Bayer AG with annual sales of about EUR 5.8 billion (2003), is one of the world's leading innovative crop science companies in the areas of crop protection, non-agricultural pest control, seeds and plant biotechnology. The company offers an outstanding range of products and extensive service backup for modern, sustainable agriculture and for non-agricultural applications. Bayer CropScience has a global workforce of about 19,000 and is represented in more than 120 countries, ensuring proximity to dealers and consumers.

Cargill Specialty Canola Oils develops, produces and markets high-performance canola oils and solid shortenings that deliver zero trans and low saturate solutions to the food industry. It is a business unit of Cargill, an international provider of food, agricultural and risk management products and services. With 105,000 employees in 59 countries, the company is committed to using its knowledge and experience to collaborate with customers to help them succeed.

Note: Roundup Ready® is a registered trade name of the Monsanto Corporation