COTTONSEED OIL COMEBACK TOUR UPDATE

COTTONSEED PRODUCTS IN THE NEWS

WHAT'S NEW @ COTTONSEED.COM

COMING ATTRACTIONS

NCPA’S CONSULTANT REPORTS ON MEXICO

COTTONSEED PRODUCTS EXPORT REPORT

WEEKLY COTTONSEED CRUSH COMPARISON

MOVING?

COTTONSEED OIL COMEBACK TOUR UPDATE - There has been a flurry of activity on the cottonseed oil (CSO) marketing front over the past months. For starters, NCPA has successfully launched the new “Cottonseed Oil Comeback Tour” campaign and marketing website, www.cottonseedoiltour.com! Coinciding with the campaign website rollout was a breakthrough feature article in the October issue of QSR magazine (stands for Quick Service Restaurant), a key trade publication reaching decision-makers in fast food and fast casual restaurants. This five-page article on trans-fat-free oils focused almost exclusively on cottonseed oil. The Association’s marketing firm, Harvest PR, pitched the story to a reporter during the National Restaurant Association trade show in the spring and managed the entire story development process, from organizing the trip and lining up all the sources to providing ongoing editorial support. The story is a real win for the industry, and the publicity value of this media coverage is estimated at $90,000. Other recent positive cottonseed oil coverage we earned through media outreach include: (1) Stagnito’s New Products Online – This daily online journal targeting food product developers ran our announcement on fast food chain Article Circle’s switch to trans-fat free CSO; (2) The Statesman Journal – This daily newspaper out of Salem, Oregon ran our announcement on fast food chain Article Circle’s switch to trans-fat free CSO, along with a photo of its new Yukon Gold French fries; (3) QSR Web – In the Healthy Food Options section, QSR magazine online ran our announcement on fast food chain Article Circle’s switch to trans-fat free CSO; (4) Julie’s Fresh Air – This consumer website focusing on Rural America and Good Food ran a comprehensive story on the launch of the CSO Comeback Tour campaign website and on the healthy benefits of cooking with CSO; (5) Food Ingredients First – This leading food industry e-newsletter/website ran our press release on the Comeback Tour campaign and website launch; (6) AllCookingTips.com – This consumer online resource published an article on cooking oils, identifying CSO as “the leading choice in foodservice operations for frying potato chips and for producing baked goods and snacks because of its low risk in developing and imparting off flavors and its relative low price;” (7) Snack Food & Wholesale Bakery – This food industry magazine, reaching decision makers in pre-packaged snack foods and bakery, ran in print and online editions an article, “Trans-free Cottonseed Oil Lends Stability,” which positioned CSO as a “re-emerging option for bakers and snack manufacturers.” The reporter interviewed our contact at Cork’s Donuts for this story; (8) Texas Farm Bureau – Newsletter ran a brief on the campaign website launch; (9) HubPages.com – The leading online publishing ecosystem of a variety of topics, including food, ran a feature on CSO inspired entirely by the new website. Written in consumer-friendly terms, the article positions CSO as healthy, trans-fat free medium frequently used in the food industry, but also available to consumers. The article points fried turkey aficionados to the NCPA site for safety tips; (10) Food Processing magazine – In a story about how food processors worked closely with their suppliers to identify food ingredient solutions, CSO was singled out in the “oil” section. The reporter ran our story about how Cork’s Old Fashioned Donuts in Albany, Ore., switched to a trans-free CSO blend and has since grown his business. This publication reaches 65,000 food processing/marketing professionals. Value: $30,000; (11) The Seattle Times – This major daily newspaper reaching 220,000 readers in western Washington picked up an Associated Press-generated story on consumer products that are “going extinct,” from pay phones to trans fats. This tongue-in-cheek story listed the products’ “threats to survival.” The top threat to trans fats? Cottonseed oil! (12) SE AgNet – This multimedia enterprise covering the “deep Southeast” chose CSO as the topic of its inaugural “This Land of Ours” podcast. Broadcast journalist Laura McNamara reports on the “Cottonseed Oil Comeback Tour,” noting that the use of CSO has doubled over earlier years and is a natural choice for creating and cooking healthier foods free of artificial trans fats.

COTTONSEED PRODUCTS IN THE NEWS - ABC 7 in Chicago notes in a recent report that cottonseed oil is a great choice for that Thanksgiving deep-fried turkey. Its recipe for “Authentic Cajun Fried Turkey” calls for cottonseed oil and also includes a handy “how-to” guide…..NEWSOK in Oklahoma City notes that “it’s a good idea to mulch the top of the soil around tender perennials, shrubs and plant material that are marginal for our temperature zone with a natural mulch of bark, collected leaves, cottonseed hulls, pecan hulls or compost. The mulch will act like a blanket to help keep the soil warmer and more consistent in temperature…..The High Plains Journal in Dodge City, Kansas reports that cottonseed meal is a good ingredient to include as a supplemental feed to help cows over the winter.

WHAT'S NEW @ COTTONSEED.COM - According to NCPA’s latest survey, cottonseed crushings for the week ending November 11 reached 56,714 tons, compared to 58,623 tons the previous week. That brings year-to-date crushings to 696,434 tons, compared to 716,829 tons for the same number of weeks a year ago and 841,699 two years ago…..Data compiled by NCPA from the US Census Bureau puts cottonseed exports for the full 2006-07 marketing year (Oct-Sep) at just under 600,000 metric tons compared to 522,000 mt a year ago. Mexico, Japan and Korea were the largest buyers. Cottonseed meal exports for 06-07 came in at 95,473 mt vs 127,576 mt a year ago. Mexico is the destination of over 95% of US meal exports. Cottonseed oil exports reached 62,495 mt compared to 30,587 mt a year ago. Korea was the largest market for US cottonseed oil with over 19,000 mt, followed by Canada with just over 18,000 mt and Australia with almost 9,000 mt.

COMING ATTRACTIONS - To bring our virtual “CSO Comeback Tour” to life, NCPA is sending five postcards, each represent “stops” along our cross-country culinary trek, from Utz in Pennsylvania to Safeco Field in Washington. Be on the lookout for samples in the mail – this is just one of the many ways we’re engaging with thousands of food industry people nationwide and driving them to our new website. All five postcards will be mailed before Thanksgiving.

NCPA’S CONSULTANT REPORTS ON MEXICO - Ricardo Silva, NCPA/CCI’s consultant in Mexico, reports that demand for US cottonseed meal in Mexico will likely remain high for the near term due to higher prices of competing protein meals. US CSM exports to Mexico totaled just over 92,000 metric tons for the Sept 06 /Oct 07 marketing year, just under the 119,000 mt total of a year ago…..Silva met with the Union Ganadera of Chihuahua, who noted that rainfall has been scarce over much of northern Mexico, which will tend to increase the demand for cottonseed meal as roughage and pasture will be in short supply. The Chihuahua dairy association represents over one million cows has about 4,000 metric tons of US cottonseed meal on hand. Cottonseed meal supplementation by ranchers is mainly used when natural forage is scarce. The Association’s next purchase is estimated to be at the end of the year…...Silva also reports that the value of the peso to the dollar has maintained consistency with some variability but has not affected the demand for US cottonseed meal…...For the second consecutive year NCPA-CCI was invited to the EXPOGAN 2007 organized by the Union Ganadera of Chihuahua. This is a major cattle event in the state with over 100,000 people attending. EXPOGAN highlights cattle, goat and sheep and is held every year starting around October 11. NCPA-CCI provided Dr. Dale Blasi of Kansas State University to give a presentation on animal feeding, with emphasis on the use of US cottonseed meal in cow-calf systems…...A delegation from NCPA visited Colombia, Panama and Costa Rica to further promote US cottonseed meal. The team met with major feed manufacturers of each country, including The Solla Group in Colombia, the largest feed manufacturer in the region, Dos Pinos in Costa Rica, a major dairy cooperative, and Grupo CALESA, which manages a large area of shrimp farms in Panama. There appeared to be considerable interest in the use of US cottonseed meal from each group….. According to Mr. Novoa of the Confederacion Algodonera (cotton association) cotton production in Mexico is projected to be 641,767 bales for 2007-08, with cottonseed production estimated at 246,151 metric tons.

COTTONSEED PRODUCTS EXPORT REPORT

WEEKLY COTTONSEED CRUSH COMPARISON

MOVING? - Please send all change of address information to: National Cottonseed Products Association, 866 Willow Tree Circle, Cordova, TN  38018, or email to info@cottonseed.com.

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© National Cottonseed Products Association, Inc.

November 16, 2007