CCC VancouverMarch 21, 2007Chart 1 FSU Oilseeds - Raising the Curtain Thorsten Tiedemann Toepfer International, Hamburg Vancouver, March 21, 2007 CANOLA – Growing Great 2015!

CCC VancouverMarch 21, 2007Chart 2 Hamburg London Warsaw Paris Madrid Basle Rotterdam Antwerp Bucharest Winnipeg New Orleans Minneapolis Tampa Athens Rostov Kiev Amman Cairo Mumbai Tehran Manila Jakarta Adelaide Singapore Dalian Beijing Shanghai Taipei Ho Chi Minh City Bangkok Sao Paulo Rosario Buenos Aires Budapest Odessa Dublin Montevideo Sofia ACTI‘s Office Locations 40 offices 900 employees Turnover 40 mln t

CCC VancouverMarch 21, 2007Chart 3

CCC VancouverMarch 21, 2007Chart 4 The Appearance of the FSU-12 on the World Grain Market Export Surplus due to a Drop in Grain Use Exports Imports Source: USDA

CCC VancouverMarch 21, 2007Chart 5 FSU-12: Grain and Oilseed Acreage Development since 1990 in mln ha Source: USDA

CCC VancouverMarch 21, 2007Chart 6 FSU-12: Oilseed Production by Type of Oilseed Source: USDA

CCC VancouverMarch 21, 2007Chart 7 World Sunflower Production World Production: 30.6 mln t in 2006 Source: USDA Almost 50% produced in the Black Sea Region

CCC VancouverMarch 21, 2007Chart 8 Russia: Sunflower S&D in mln t Source: USDA

CCC VancouverMarch 21, 2007Chart 9 Russia: Exports of Sunflower Seed and Oil Source: USDA

CCC VancouverMarch 21, 2007Chart 10 Ukraine: Sunflower S&D in mln t Source: USDA

CCC VancouverMarch 21, 2007Chart 11 Ukraine: Exports of Sunflower Seed and Oil Source: USDA

CCC VancouverMarch 21, 2007Chart 12 Russia & Ukraine: Projection of Sunflower Production & Trade Sunflower acreage reached its peak (crop rotation) Higher acreage possible in years with grain winter kill etc. Yield increase due to better varieties (hybrids, high oleic) & farming practices Crush capacity sufficient to crush the local crop Seed exports only in very good crop years Domestic use to increase slightly, exports to increase slightly as well Projection RussiaProjection Ukraine Source: Toepfer & USDA

CCC VancouverMarch 21, 2007Chart 13 Russia & Ukraine: Trends in Rapeseed Production New 00 winter-varieties available Royalty problem solved with hybrid seed Huge difference between well and poorly managed farms –Poorly managed: < 1 t/ha –Well managed: > 4 t/ha in Ukraine Well managed farms have invested in: –Soil preparation & seeding technology –“Western-style” crop protection –Harvest technology Production Development in Russia –Based on export tax of 20 % –Profitability of competing grain –To triple by 2010 Production development in Ukraine –No export tax so far –Logistics –Production to quadruple by 2010 Russia Ukraine Source: Toepfer & USDA

CCC VancouverMarch 21, 2007Chart 14 Russia: Rapeseed S&D in 1,000 t Local rapeseed crush subsidised by differentiated export tax Crush to increase, exports of rapeseed oil or RME Exports should be very volatile depending on the crop year and crushing capacity Exports of rapeseed difficult to predict, but on average low Source: Toepfer & USDA

CCC VancouverMarch 21, 2007Chart 15 Ukraine: Rapeseed Acreage by Oblast Rapeseed production concentrated in central oblasts Source: Toepfer Acreage in 1,000 ha

CCC VancouverMarch 21, 2007Chart 16 Ukraine: Rapeseed S&D in 1,000 t Estimate based on the assumption that export tax is not going to be implemented However, export tax possible, which should lead to sign. lower exports Trend for further increase in production Crushing industry should increase slightly Biodiesel industry hardly viable without subsidies Exports of rapeseed to increase in this scenario Source: Toepfer & USDA

CCC VancouverMarch 21, 2007Chart 17 Ukraine, the new Competitor on the World Rapeseed Market in 2007/08 (Exports in 1,000 t, Estimates for 2006/07 and 2007/08) Source: Toepfer

CCC VancouverMarch 21, 2007Chart 18 Russia: Trends in Soybean Production (in mln t) Soybean production in Siberia and Southern Russia to increase Russian soybean trade negligible, also in the next years Soybean crush to increase due to strong demand increase for soybean meal (livestock sector well protected from world market and very profitable, especially poultry production) Summary: Soybean production to increase but little linkage to world markets Source: Toepfer & USDA

CCC VancouverMarch 21, 2007Chart 19 Ukraine: Trends in Soybean Production (in mln t) Soybean production to increase in central and south-eastern Ukraine Crush is also expected to increase, but local demand for Soybean meal restricted so far Therefore, increasing export potential for soybeans Summary: Soybean production to increase, should be used partly domestically but increasing export potential Source: Toepfer & USDA

CCC VancouverMarch 21, 2007Chart 20 Conclusion I 1.Oilseed production has gained momentum in Russia and Ukraine: Favourable prices compared to grain Improved production technologies and varieties Improved logistics 2.Future development of oilseed production based on: Price development on the oilseed and grain market (fight for acreage) Further improvements in logistics Structural change in the farming sector – management is the scarce factor in the FSU-12 agriculture, not capital 3.Export potential depends on: Trade policies, especially the export taxes Biofuel policies in these countries Investment climate, i.e. how attractive it is for foreign investors to built crushing plants in Russia and Ukraine

CCC VancouverMarch 21, 2007Chart 21 Conclusion II 4. Impact on the Canadian Canola Industry: Russia, but especially Ukraine new important factor in World Rapeseed trade However, production potential of all countries urgently needed to meet the world’s ever increasing demand Interdependency of grain and oilseed markets Markets will tell what to grow every year Canadian farmers in excellent position to react in spring on the potential competition from the Black Sea region and other exporters