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Bayer CropScience, Cargill Form Alliance for New Canola Lines

Two companies join forces to provide a market for specialty canola oil.

Bayer CropScience and Cargill have joined forces to produce specialty canola that offers a high-stability oil for Cargill's food industry customers. The oil doesn't require hydrogenation and is used by food processors when there is a need to eliminate trans fat, or reduce saturated fat content.

The U.S. Food and Drug Administration will require all food manufacturers to list trans fat content on label in January 2006. Food companies are working to remove trans fat from their recipes.

The alliance will combine Bayer CropScience expertise in producing high-performing, high-yielding seed with Cargill Specialty Canola Oil's patented technology for producing and utilizing a high-oleic canola oil, according to a press statement. The alliance will also collaborate on research to develop other desirable oil traits, with the aim of ramping up the supply of canola varieties that offer high stability oil with improved nutritional composition.

The seed produced by the alliance will be developed from Bayer's InVigor line of hybrid canola. Hybrids with the new traits could be released for commercial growing in Canada and the United States as early as 2007. This is an added choice for customers of Cargill's AgHorizons retail business providing access to Bayer's InVigor line with the LibertyLink herbicide tolerance system. Cargill already sells its own proprietary canola with Roundup Ready technology.

The $32 billion global market for oilseed production is estimated to be growing 3% per year. Two oilseed crops, soybeans and canola, account for more than 70% 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 oils.

TAGS: Soybean
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