Presentation by: Jim Grey General Manager Ontario Soybean Growers

1
Presentation byJim GreyGeneral ManagerOntario
Soybean Growers
Commercialization
2

• We have tremendous opportunity!

3

• IF
• We can master the commercialization cycle
• We will have SUSTAINABLE success

4
The Commercialization Cycle
5
Commercialization is not a set of disconnected
activities
Production Development
?
Regulatory Legal
?
?
?
Market Needs Assessment
Processing
?
?
Innovation / Product Development
?
Marketing PR
?
Supply Chain
Market Acceptance
6
If we view Commercialization as a structured
cycle we can exploit it
Market Needs Assessment
Market Acceptance
Innovation / Product Development
Production Development
Processing
Supply Chain
Marketing PR
Regulatory Legal
7
WE can

• Stimulate economic growth
• Rural and Urban

8
WE can

• Stimulate economic growth
• Rural and Urban
• Capture value at the Farm Gate

9
WE can

• Stimulate economic growth
• Rural and Urban
• Capture value at the Farm Gate
• Offer consumers safe, secure, domestic
  alternatives

10
WE can

• Stimulate economic growth
• Rural and Urban
• Capture value at the Farm Gate
• Offer consumers safe, secure, domestic
  alternatives
• Export our capabilities

11
Drivers

• Push
• High/Unstable Energy and Petroleum costs
• Low Agricultural commodity prices
• Farm gate income
• Mature agriculture industry markets
• Low/no growth
• Differentiated by price alone
• Supply chain interventions
• Agricultural capacity
• What do we do withversus here is what we need
• Regulatory

• Pull
• Social and Consumer trends
• Healthy lifestyles
• Diet versus medicate
• Renewable focus
• Industry trends (need for profit)
• in
• out
• Regulatory
• Eg., Labeling

12
Commercialization Cycle
Market Needs Assessment
Market Acceptance
Innovation / Product Development
Processing
Production Development
Supply Chain
Marketing PR
Regulatory Legal
13
Commercialization Cycle
Market Needs Assessment
Market Acceptance
Innovation / Product Development
Production Development
Processing
Supply Chain
Marketing PR
Regulatory Legal
14
Opportunities

• Proximity and competitiveness of food cluster
• Golden Horseshoe, NE US, Midwest

Ontario is within a days drive of 130 Million
Canadian and American Consumers
15
Opportunities

• We are competitive in the G7.
• Is that relevant?
• Is that enough?
• We must be forward looking.

16
Opportunities

• Proximity and competitiveness of food cluster
• Golden Horseshoe, NE US, Midwest
• Ontario Auto Industry

17
Auto Industry Competitiveness
18
Opportunities

• Proximity and competitiveness of food cluster
• Golden Horseshoe, NE US, Midwest
• Ontario Auto Industry
• Renewable Energy
• Academic and Government focus
• Growing awareness of healthy alternatives

19
Opportunities - Soybeans

• Tremendous academic and government research base
  in Ontario
• Research and innovation partnerships
• Soy 20/20
• Structured for IP compatible grower agreements
  from the farm up through the industry
• Engaged, efficient and knowledgeable growers

20
Ontarios Opportunity
Specialty High Value Specialties
Commodities High Value
Specialization
Value
21
Challenges

• Global competition
• Other geographies poised to supply
• US
• China
• Border crossing with our largest trading partner
• A sustainable producer community
• Lack of scalable industrial base
• Local processing
• Specialty processing
• Canadian regulatory environment
• Safe
• . . . but slow
• Getting the attention of Industry
• Industry needs to want to do this in
  Canada/Ontario
• An integrated, shared view of success with the
  processor community

22
The Processing Gap
Market

• Processor
• Commodity Focused

• Infrastructure
• Safe/Secure
• IP Capable

• Producer/Grower
• Innovative
• Efficient
• Flexible
• Motivated

23
Path Forward

• Work together to create an integrated, compelling
  rational agenda for Ontario Agriculture
• Growers
• Processors
• Industry
• Academia
• Government
• Trade partners
• Work closely and in partnership with our
  regulatory system to streamline the process and
  focus on the true critical issues that affect our
  long term success
• Think not in terms of artificial barriers but
  programmatic gateways
• Aggressively court Industry with our integrated
  story with specific opportunities for growth and
  the potential for focused long term investment
  and partnerships.