Redefining success

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Redefining success

• Soy 20/20
• January 21st, 2004

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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?

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Soy 20/20 vision
OSG
AAFC
Refine vision Walk towards it
Soy 20/20
OMAF
U. of Guelph
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How did we get here?
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Drivers for Ontario production
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Supply/Demand Price
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How about value share?

• Demand has kept pace with supply
• Has farm value stayed the same?

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Example of value sharing
Swine value chain (US)
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Farm soybean profit versus export margin.
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Farm profit versus crushing margin.
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The closer you are to the consumer the higher the
profit.
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The best farm value does is maintain share.
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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

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Industrial markets for soybeans
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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.

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We need to diversify markets for what we produce.
Producers need to diversify the crops they produce
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Food is not the best growth opportunity for
agriculture.
Industrial sector value in Ontario.
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What are the most promising new market
opportunities for Canada?
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(No Transcript)
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Bio-diesel in Canada
Feedstock cost
Tallow
0.09/lb
Yellow grease 0.18/lb
Soybean oil 0.38/lb
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Potential bio-diesel demand for Canadian soybeans.
NPV 21,655,050
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Soybean peroxidase
Soybean peroxidase
Formaldehyde
Phenol

Phenolic resins
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Soy wax candles
Candle company
Wax producer
Candle company
Candle company
6,000 acres of soybean
Candle Company
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Polyurethane
Petroleum
Soybean oil
Polyols
Polyurethane
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Solvent in cleaning supplies
Limonene
Soy based ethyl esters
Cleaning solutions
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How can we change the future?
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Moving up the value chain.
Soy meal
Protein
Soy food
Soybeans
Salad oil
Oil
Plastics
Ethanol
Carbohydrates
Plastics
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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

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Farmers need to sell up the value chain- Sell
protein- Sell oil- Sell carbohydrates
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Summary

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

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