Fresno, California, USA
July 28, 2016
S&W Seed Company (Nasdaq: SANW) today announced the company has signed a new license agreement for production and marketing of two sunflower varieties for the Ukraine, Russia, Belarus, Georgia and Kazakhstan with a seed company with significant distribution throughout the region. The licensee has commenced commercial scale seed production activity in the Ukraine, and S&W's sunflower hybrids will be introduced into the market place for the 2017 production season.
Russia and the Ukraine are the two largest sunflower markets, representing nearly 60% of the global sunflower production. This agreement highlights the first commercial activity that S&W's recent acquisition of SV Genetics has had in these lucrative markets. The two licensed varieties are traditional polyunsaturated oil types, however the licensee is also evaluating high oleic types, and a variety resistant to Imidazilone herbicide. Additionally, the licensee is expected to evaluate S&W's alfalfa seed products in 2017, highlighting what S&W believes is a prime example of the complimentary fit of the recent SV Genetics (SVG) acquisition by S&W.
SVG has licensing agreements with different partners to provide its grain sorghum, forage sorghum and sunflower genetics throughout the world, including Australia, parts of South America, Western and Eastern Europe, Russia, Pakistan and South Africa.
Mark Grewal, president and chief executive officer of S&W Seed Company, commented, "We are extremely pleased with the addition of this new licensee to the portfolio of seed companies that are working to expand the production and distribution of our newly acquired sunflower seed varieties across the world. The Ukraine and Russia are the two largest sunflower markets in the world, and this licensee chose to move forward with our varieties due to the diversity and strength of these two varieties, and also the SV Genetics breeding program as a whole. We look forward to working with this new seed company on a go forward basis to expand our sunflower operations, and potentially our alfalfa operations as well."
About Sunflower
Sunflowers have multiple specialty uses including oil, birdseed and human consumption, with SV Genetics' current seed focus on the oil market. Sunflower oil is light in taste and appearance and supplies more Vitamin E than any other vegetable oil. It is a combination of monounsaturated and polyunsaturated fats with low saturated fat levels. The versatility of this healthy oil is recognized by cooks internationally, valued for its frying performance and health benefits. With multiple types of sunflower oils available, it meets the needs of consumer and food manufacturers alike for a healthy and high performance non-transgenic vegetable oil.
Global sunflower seed production in 2016-17 is projected at 41.2 million tons, up 5 percent from the current season and above the recent 10-year average. The sunflower seed oil trade is forecast to rise, supported by very strong demand in India, the EU, North Africa, and the Middle East.
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