Prepared Foods July 19, 2004 enewsletter

National Starch and Chemical Company announced that it doubled its 2004 planting commitments to grow its high-amylose corn used to make Hi-maize resistant starch, which the company claims is the only natural, granular resistant starch available in the United States. This expansion in the grain-growing program complements the manufacturing capacity expansions announced in June 2004.

"National is strongly committed to meeting the growing demands for Hi-maize," said Jim Zallie, group vice president, Natural Polymers Group, National Starch and Chemical Company. "This expansion of our 2004 U.S. agricultural programs will allow us to better balance supply and demand over the next 18 months."

National grows a unique, non-GM, identity-preserved, high-amylose hybrid corn through a network of U.S. farmer partners -- some of whom have grown corn for National for 20 years. Through a controlled, documented agricultural management system called TRUETRACE, National can track its high-amylose grain production from the seed it provides to its contract growers, to the exact farms where the seed is planted, and then to the on-farm storage bins where the grain is held prior to delivery to its Indianapolis plant. Because National produces and supplies the seed to its own contract grain programs, National must be able to forecast ingredient product demand up to 18 months in advance in order to have sufficient seed on hand to support the grain production programs.

Given the dramatic increase in Hi-maize demand over the last year, National has worked closely with its customers to understand their 2004 and 2005 needs and with its farm partners to expand acreage commitments. In anticipation of continued strong demand, National has already increased its seed production for the 2005 crop.

"National is committed to supporting our customers' products using Hi-maize, and we are confident that ample supplies of grain will be available to do so," said Zallie.