1. Redefining success Soy 20/20 January 21 st, 2004

2. Overview Where are we at now? How did we get here? What opportunities exist to change this? How can we make the future look different?

3. Soy 20/20 vision OMAF U. of Guelph OSGAAFC Soy 20/20 Refine vision Walk towards it

4. How did we get here?

5. Drivers for Ontario production

6. Supply/Demand = Price

7. How about value share? Demand has kept pace with supply Has farm value stayed the same?

8. Example of value sharing Swine value chain (US)

9. Farm soybean profit versus export margin.

10. Farm profit versus crushing margin.

11. The closer you are to the consumer the higher the profit.

12. The best farm value does is maintain share.

13. Future projections Price will stay stable to improve –Argentina close to maxed out –Brazil poised for additional growth –U.S. reduced production –China is the one to watch

14. Industrial markets for soybeans

15. Why are industrial markets exciting? 1.Increased demand for soybeans 2.A new opportunity for value chain management. 3.Greater market diversity leads to greater market stability for producers.

16. We need to diversify markets for what we produce. Producers need to diversify the crops they produce

17. Food is not the best growth opportunity for agriculture. Industrial sector value in Ontario.

18. What are the most promising new market opportunities for Canada?

20. Bio-diesel in Canada Tallow Feedstock cost $0.09/lb Yellow grease $0.18/lb Soybean oil$0.38/lb

21. Potential bio-diesel demand for Canadian soybeans. NPV = $21,655,050

22. Soybean peroxidase Soybean peroxidase Phenolic resins Phenol + Formaldehyde

23. Soy wax candles Wax producer 6,000 acres of soybean Candle company Candle company Candle company Candle Company

24. Polyurethane Polyols Petroleum Soybean oil

25. Solvent in cleaning supplies Limonene Cleaning solutions Soy based ethyl esters

26. How can we change the future?

27. Moving up the value chain. Soybeans Protein Oil Carbohydrates Soy meal Soy food Salad oil Plastics Ethanol Plastics

28. Two ways to move up the chain. Varieties grown for industry Farmers involved in processing -Varieties with altered profiles -Less protein/higher oil/higher yield -Lower price/bu, Higher value/acre

29. Farmers need to sell up the value chain; - Sell protein - Sell oil - Sell carbohydrates

30. Summary New market opportunities are coming. These will create more value by increasing demand. To gain greater value requires movement up the value chain.

31. We need to imagine success beyond alleviating current constraints. We need to imagine beautiful.