NCPA, HARVEST PR TEAM UP FOR OIL PROMOTION

NCC, NCPA PREPARING COMMENTS TO ADDRESS EPA PROPOSED RULE

WHAT’S NEW @ COTTONSEED.COM

E-NEWSLETTER

WELCOME NEW MEMBER

111TH ANNUAL CONVENTION

WORLD OILSEED UPDATES

WORK CONTINUES ON LOW OIL COTTONSEED

MOVING?

NCPA, HARVEST PR TEAM UP FOR OIL PROMOTION - NCPA recently selected Harvest PR & Marketing, Inc., Portland, Ore., as its public relations agency of record. Harvest PR will develop and execute a public relations campaign to maintain a positive media image for cottonseed oil, as well as point out advantages of using cottonseed oil in today’s “no trans” conscience environment. “Harvest PR’s expertise in trade and consumer public relations, specifically within the industries of food and agriculture, will no doubt create tremendous awareness for cottonseed oil among our target audiences,” notes Ben Morgan, executive director of the association. “We’re looking forward to embarking on this campaign with them.” Harvest PR principal Heidi Nelson says the current national discussion over trans fats in our nation’s food supply makes cottonseed oil an especially palatable subject. “Cottonseed oil is the original trans fat-free oil, after all.” Harvest PR, based in Portland, Ore., is a communications boutique that services clients in the agriculture, food, health, consumer products and travel industries. Harvest PR is interviewing industry experts to fine tune the messaging that will be brought to market via the new PR campaign. The Agency already has been in communication with the Associated Press regarding a possible upcoming story on trans fats. A Good Housekeeping food editor also has expressed interest on the topic. Harvest will continue to explore these and other opportunities and aid in positioning cottonseed oil to its fullest advantage.

NCC, NCPA PREPARING COMMENTS TO ADDRESS EPA PROPOSED RULE - NCPA and the National Cotton Council are joining with the American Coke and Coal Chemicals Institute, American Forest & Paper Association, Corn Refiners Association, National Oilseed Processors Association, National Petrochemical and Refiners Association, and Portland Cement Association in submitting comments to EPA regarding EPA's proposed rule entitled "National Emission Standards for Hazardous Air Pollutants: General Provisions," 72 Fed. Reg. 69 (Jan. 3, 2007). The proposed rule is an important and overdue change to the current "Once-In, Always-In" (OIAI) policy regarding MACT applicability to sources of hazardous air pollutants. EPA's proposal responds to many calls by state and local regulatory agencies and by the regulated community to eliminate the legally and environmentally unsound OIAI policy. The group plans to submit comments in support of EPA's proposed amendments. Phil Wakelyn with NCC is coordinating comments on behalf of NCPA & NCC. EPA’s proposal can be found by entering “EPA-HQ-OAR-2004-0094” in the search box at http://www.regulations. gov/fdmspublic/component/main

WHAT’S NEW @ COTTONSEED.COM - Rolf Leutscher, e-mail R.Leutscher@cebag.com, seeks RBDW cottonseed oil quote based on CIF Antwerp. A quotation is requested for regular shipments of RBDW cottonseed oil in FLexibags into 20 ft containers (www.coroli.com)…..Cottonseed crushings for the week ending February 25 were up 8.4% over the previous week. More details in the Statistics section of the web site…..NCPA convention details are available by following the Convention link on the home page. Registration, program information and a schedule of events is available, as well as hotel room reservations procedures. Register early and save!!.....Check out the latest details for cottonseed crushings and stocks in the Association’s January survey of member oil mills.

E-NEWSLETTER - Beginning May 1, the NCPA Newsletter will only be available online & via e-mail. Sign up by sending your e-mail address to sstine@cottonseed.com.

WELCOME NEW MEMBER - The NCPA is pleased to welcome John Kauffmann, J. D. Heiskell & Co., Tulare, CA as a new member to the Association. J.D. Heiskell and Company has been in business in Tulare, California since 1886. That was the year that Jefferson Davis Heiskell, an employee of a firm known as Farmer’s Union Warehouse came to Tulare to supervise the construction of the wooden grain storage building that still stands on their Tulare property.

111TH ANNUAL CONVENTION - Follow the link for details of NCPA's annual meeting in Destin, Florida.

WORLD OILSEED UPDATES - Oilseed production in the EU25 is reaching new record levels, propelled by the demand for rapeseed oil from the biodiesel industry, according to a combined report from thirteen US Agricultural Attaché posts in the EU. The demand for rapeseed, it says, has encouraged expansion of rapeseed area. This increase has led to record rapeseed harvests over the last three years. However, despite these record harvests, demand for rapeseed has exceeded production, leading to increased rapeseed and rapeseed oil imports in the EU. Because of continued low crush margins for soybeans relative to rapeseed, they say, more and more crushers are turning from soybeans to multi-seed or rapeseed crushing. There is a difference, however, between Northern and Southern Europe. In Northern Europe where most of the rapeseed is grown, there is an increased focus on rapeseed crush and consumption. In Southern Europe, mainly Italy, Spain and Portugal, an increase in soybean use is expected, where there is a growing interest in soybean oil based biodiesel production…..Veg oil production is expected to remain stable at 164,000 mt in 2006/07, according to the US Embassy in Seoul, Korea. Total soybean oil consumption is expected to increase to 540,000 mt, up 13 percent from the previous year, to meet the new demand created by the production of bio-diesel. The Korean government reached an agreement with five major local petroleum refineries to voluntarily supply 180,000 kiloliters of bio-diesel through their gas stations across the nation for two years from July 2006 to June 2008. Annual production of bio-diesel is around 90,000 kiloliters and it is expected to require the same amount of vegetable oils. Accordingly, in MY 2006/07, Korea is expected to import an additional 60,000 tons of soybean oil. Currently registered bio-diesel plants with a total annual capacity of 307,000 tons plan to continue using soybean oil as raw material. Soybean oil imported from South America is extremely competitive with domestically produced soybean oil derived from imported soybeans. Food processors that use soybean oil as an input and restaurants have come to rely heavily on the lower priced imported soybean oil.(USDA-FAS GAIN Reports E36146, 12/20/06; K6130, 12/21/06)

WORK CONTINUES ON LOW OIL COTTONSEED - Re-directing the energy a cotton plants uses for oil and seed production to lint production is the aim of a researcher with Delta and Pine Land Co. At the Central Coast Cotton Conference in Monterrey, CA, Thomas Kerby, Ph.D., with D&PL reported that through new cotton biotechnology work, the company had been working on the idea for a few years. Not surprisingly, the low oil/high lint seed idea gained strength with the success of Deltapine 555, already known for its low oil content. Harvesting the energy a plant uses for seed and oil production, researchers figure, will lead to increases in lint content, substantially increasing yields. Kerby acknowledged that the seed would be smaller and generally not viable as conventional seed—in other words—virtually worthless to the crushing industry. The Central Coast Cotton Conference was launched in 2003 to provide California cotton industry professionals with an interactive learning environment. (Source: Western Farm Press, January 13, 2007; www.cottonconference. com)

MOVING? - Please send all change of address information to: National Cottonseed Products Association, 104 Timber Creek Drive, Suite 200, Cordova, TN  38018, or email to info@cottonseed.com.

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© National Cottonseed Products Association, Inc.

March 7, 2007