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GreenField announces program for Ontario corn producers

TORONTO

GreenField Ethanol, Canada's leading ethanol producer, today launched a new exclusive program that will benefit Ontario corn growers by encouraging them to sell directly to the ethanol plant and improving their grain marketing options.

The Ontario Buy Direct Program, the first of its kind in Ontario for a commercial operation, means that Ontario corn growers can sell their corn directly to the buyer – GreenField Ethanol Inc (formerly Commercial Alcohols).

"This initiative reflects our commitment to Ontario's corn growers and will help to create a sustainable and profitable Ontario grain market," said GreenField Ethanol President and CEO Bob Gallant.

The Ontario Buy Direct Program is only available to Ontario farmers. The program offers producers several grain-marketing alternatives to manage their risk, provide control over cash flow, potentially increase profitability and provide contract flexibility. The program offers a variety of sales contracts such as "Futures First," a contract that allows producers to lock into futures prices today and set the basis prior to delivery.

This year GreenField Ethanol will purchase approximately 19 million bushels of corn but the demand is growing substantially. Estimates show that by 2008 North American demand for corn for ethanol will grow to 2.5 billion bushels per year. GreenField Ethanol projects it will need approximately 60 million bushels of corn for ethanol by the end of 2008. Of that amount about one-third will be returned to the farmer as feed in the form of Dried Distillers Grains.

As part of the Program, GreenField Ethanol will hold meetings with producers across the province, beginning in southwestern Ontario, to further detail the program.