February 5, 2009

As US ethanol production looks set to balloon up considerably, US seed companies are set to beef up its seed yield in order to meet demand.

 

US ethanol output is expected to jump to a stunning 36 billion gallons by 2022, which would require the support of a large corn production.

 

In response, several seed companies are striving to double the yield of their grain seeds.

 

DuPont subsidiary Pioneer Hi-Bred is looking to increase the yields of its corn hybrids and soy varieties by 40 percents within 10 years, while Monsanto has pledged to double yields from its crops by 2030.

 

Monsanto is in the process of building a new production and research facility, and Pioneer is carrying out an expansion worth US$11 million. Mycogen had also constructed a US$5 million expansion in the past year.

 

Researchers have developed a better understanding of corn genetics and have isolated traits that increase yields or allow crops to weather cool, dry or wet conditions, according to Russ Sanders, Pioneer Hi-Bred's director of end-use markets.

 

Pioneer Hi-Bred is also working on corn varieties specifically geared to the ethanol industry.

 

Jeff Broin, chief executive of ethanol producer Poet LLC, said corn yields have continued to grow, and the potential is much greater when looking at international cropland.

 

While US farmers enjoy yields above 150 bushels per acre, countries such as Mexico and Brazil are getting closer to 50 bushels per acre while China is reaching about 75 bushels per acre, said Broin.

 

Expanding the latest seed technology to these countries would help optimise acres to meet the world's grain needs, Broin said.

 

Despite the ongoing recession, which has severely hurt the US ethanol industry, grain demand will remain healthy, said Hugh Grant, chairman, president and CEO of Monsanto.

 

Increasing crop yield will benefit both the seed company and the farmers, said Grant, adding that the US is expected to achieve 10 percent ethanol use as there are no alternative blendstock that refiners can fall back on.

 

Sanders said Pioneer is looking at other methods to help ethanol producers, such as increasing oil content, enhance protein or improve the digestibility of distillers grains, an ethanol byproduct commonly sold as cattle feed.

 

"We see a lot of profitability challenges with these ethanol processors right now and everything that we can do as an industry to keep those plants profitable is going to be good for us, whether you're a grower or a seed company," Russia said.