Identity Preservation

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Identity Preservation

• Presentation
• June 03, 2003

by Patrick Van Osch Canbra Foods Ltd
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Presentation Outline

• JRI/Canbra overview
• Canbras I/P programs
• I/P Whats in it for
• Agribusiness
• Questions

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JRI Overview

• A subsidiary of James Richardson Sons, Limited,
  a privately own Canadian company out of Winnipeg.

• JRI, one of Canadas leading Agribusinesses in
  the
• Supply of Crop inputs and agronomic information
  for Canadian Farmers
• Marketing and managing the movement of grains and
  oilseeds worldwide
• Blending and supplying top-grade fertilizer and
  other products for the BC market
• Processing and packaging canola based food
  products

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Canbra Foods Overview

• A subsidiary of James Richardson International
  Limited (JRI)

• Established in 1957, Canbra was one of the first
  companies in the world to market canola oil
  products
• Markets bulk and packaged Oil, Margarine and
  Shortening products domestically (Canada and US)
  and into export markets.
• Only fully integrated plant in Canada
• From Seed to Consumer Products

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Canbras IP Programs

• Two I/P programs exist today

• Non-GMO oil
• Initially driven at the request of a key customer
• Worked with the customer to understand
  requirements/expectations
• Once I/P program was in place, we marketed to
  other customers

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Canbras IP Programs

• Two I/P programs exist today (continued)
• Functional Oil

• Originally driven by seed development
• We partnered with the seed company to develop
  grower and end use customer interest
• Demand is now growing based on value of added
  traits of the oil.

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Canbras IP Programs

• I/P programs are managed from selling seed to
  grow the cropto production of end use products

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Canbras IP Programs

• Why ?

• Value added products, therefore opportunities for
  higher margin.
• Our goal is to market value added products where
  possible and move out of commodity selling
• Meeting new end use customer demands
• Create loyalty, market other products
• New offerings to our grower customers
• Often overlooked, but an important part of the
  equation.

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Whats in it for Agribusiness

• Growing need for I/P programs driven by

• Increasing demand for functional foods and
  ingredients from end use customers (further
  processors, restaurants, etc)
• Increase interest in non food use of grains and
  oilseeds
• New seed variety developments will move from
  improve production features to end use
  requirements. This will require I/P systems for
  introduction and market development
• Consumer demand for safer and healthier foods
• Shift beyond basic food buying

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Whats in it for Agribusiness

• It requires a closer working relationship
  from grower to end use customer.

• Must be customer driven !

• Additional responsibilities at every step
• Growers must follow specific guidelines
• Grain Handling system must keep seed segregated
• Processors must have the ability and be willing
  to interrupt normal production to process unique
  products

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Whats in it for Agribusiness

• ALL INVOLVED REQUIRE WELL
• DOCUMENTED PROCEDURES AND
• DISCIPLINE IN FOLLOWING THOSE
• PROCEDURES TO BE SUCCESSFUL !!!

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Whats in it for Agribusiness

• Increase cost and risk for all
• but greater value (margin) of product along the
  production chain

• Removes some of the price volatility normally
  found in common commodity markets.
• Develops a distinguishable product (branding?),
  creating customer loyalty (at least for period of
  time)
• Open doors to new customers and markets with
  unique products to offer

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Whats in it for Agribusiness

• It is not a silver bullet to all the industrys
  issues!

• Canada produces up to 50 million MT of grains and
  oilseeds a year ...
• therefore will need to continue to compete in
  world commodity markets
• But with unique products handled through I/P
  systems, we can diversify ourselves, increasing
  the value of a portion of our production,
  creating new demand and customers loyalty.

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Whats in it for Agribusiness

• To grow the profits of Agribusinesses, we need
  two basic foundations

• A competitive distribution system to service
  those commodity markets
• A strategy and ability to develop, brand and
  handle specialty products
• Foods
• Animal Feed
• Nutraceuticals/Pharmaceuticals
• Industrial (bio) products
• Etc

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Whats in it for Agribusiness
standing still is not an option
working for a common goal is a must
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Thank You for your timeAny Questions ?