Soy Meal Overview USB Partnership Workshop St. Louis, MO May 30, 2013

Objective: Increase the value of U.S. soy meal to the entire value chain

Meet the Meal Action Team Staff Ed Beaman, USSEC – International Opportunities Jennifer Jones, SmithBucklin – Supply and Domestic Opportunities Erin Hamm, Osborn Barr – Communications

Meeting Demand International demand is outpacing supply Increase soy meal usage and sales in U.S. and globally Highlight U.S. soy meal quality

Meeting Demand Protect and increase soybean supplies by improving yield and seed quality Increase profitability by generating value added soybean products

Domestic Opportunities Soybean Meal Markets

International Opportunities U.S. Soybean Exports Check-off Began

Investment in International Markets is a Sound Investment! U.S. Soy exports equal almost 60% of production (beans, meal and oil) and rising. Growing consumption trends outside the U.S. Rapid growth in developing economies where Soy meets basic demands of protein and vegetable oil 9 billion people in the world by 2050! Rising Middle Class able to afford more meat – 30 million in China alone next year Health conscious public

Communications Increase demand and value of U.S. soybean meal

Communications Beyond the Elevator: Where we started FALL 2010 – 15% U.S. soybean farmers who identify animal ag as most important to their bottom line JAN 2011 – BTE Launched JAN 2012 – 40% U.S. soybean farmers who say animal ag is No. 1 customer FALL 2012 – 65% Farmers say animal ag “very important”

Supply Target Area Breeding and Molecular Biology – Yield – Genomics Seed Protein Composition – Improve Soybean Meal Composition Amino Acids Carbohydrates

Supply Target Area Protect existing yield potential from losses to biotic and abiotic stress Biotic Stresses – Soybean Diseases – Insects – Nematodes Abiotic Stresses – Drought – Heat – Flooding

Thank you!

15 USB’S HIGH OLEIC SOYBEAN INTERNATIONAL MARKET PREPARATIONS

16 PRESENCE USSEC has 107 team members in 80 countries ST. LOUIS AMERIC AS EUROPE/CIS/TUR KEY NORTH ASIA SOUTHEAST ASIA MENA/A SC

Latin America - Mexican authorities define High Oleic Standards/Specs - Prepare Refiners/Crushers Conducted Worldwide HO Market Assessment - Continued HO prep in Latin America added Middle East – USB and FAS Investments December 2012 John Becherer formally rolled out HOSB at USSEC conferences in Japan, Korea, China, and Taiwan Japan, Korea, Indonesia, China, Taiwan, Latin America - CODEX = Needed Product Category - CCFO (Codex Committee on Fats and Oils) - building “Historical International Sales” - Product Code - National Law US HIGH OLEIC INTERNATIONAL MARKET PREPARATIONS

18 - Project supply - Forecast overseas demand - Determine likely oil country targets - Raise awareness - Work with prospective customers categories - HRI, Industrial, Value Chain and Influencers Conducted Market Assessment - Codex CCFO - International Sales - Parallel Market Entry - Preference for form - Identify partners - Update the international markets - Conferences - Trade Team visits - Determine Supply Catalog International Regulatory Approvals - Reclaim Healthier Oil status - Determine end user adjustments - Encourage trial usage - Encourage substitutions - Technical Support - Monitor competing oils response - Monitor Supply - Update Markets Pace of Substitution and Tipping Points - Monitor/measure adoption - Project global demand - Overcome concerns - Monitor/Respond to competing Oils response - Monitor Supply/Inventory Adoption US HIGH OLEIC SOYBEAN OIL INTERNATIONAL MARKET PREPARATIONS

19 COLLABORAT E!

20 HIGH OLEIC SOYBEANS: RECONQUERING THE OIL MARKET United Soybean Board 2013

21 WHY HIGH OLEIC?: MARKET SITUATION 2000 Soy oil dominated U.S. edible oil market with 17 billion lbs of demand. High oleic soybeans become commercially available. High oleic oil provides higher functionality in both food and industrial sectors. Trans fat labeling law enacted. Food industry reacts by reformulating products. Soy loses 4 billion lbs of edible oil annually. High oleic could build 12 billion pounds of soy oil demand in both food and industrial product sectors, as well as exports. Goal: high oleic grown on 25 million acres

22 INCREASING VALUE OF SOY OIL Increase value of U.S. soybeans As demand for soy oil increases, value of soy oil increases. Results: decreased share of the total value, decreased costs for animal feed. Oil Meal

23 HIGH OLEIC BENEFITS Food Compared to commodity soy: Increased stability Less saturated fats No trans fats Longer fry life Longer shelf life Industrial Uses Stability comparable to petroleum-based solutions Economically-viable alternative to petroleum- based products

24 PUSH STRATEGY: HIGH OLEIC VARIETAL EXPANSION United Soybean Board: Agreements to expand availability of high oleic varieties Targeting Maturity Groups 1-5 Goal of 30 percent of U.S. soybean acres by million acres

25 PUSH STRATEGY: FARMER & SEED SUPPLIER OUTREACH Grassroots awareness Engaging influencers in the marketplace Industry-wide messages Demonstrated on farm performance

26 PULL STRATEGY: END USERS Food Manufacturers Food Service Health Professionals Industrial/non- agricultural use

27 PROFITABILITY FOR U.S. SOYBEAN FARMERS 25 million acres by 2023 Raise value of all U.S. soybeans Increase individual farmers’ profitability The farmers who plant them benefit two-fold.

28 TAKE-HOME POINTS Increase demand for U.S. soy oil Increase value of U.S. soybeans Reduces the cost of U.S. soy meal U.S. soy raises the global bar as a key global supplier

Freedom to Operate 2014-Strategic Focus

WATER BIOTECHNOLOGY SUSTAINABILITY Longevity of Industry TRANSPORTATION Animal Ag

Freedom to Operate Water

Freedom to Operate Water Quality-Availability-Perception

Freedom to Operate Water Quality-Availability-Perception Challenge: Varied Issues, Local Focus

Freedom to Operate Water Quality-Availability-Perception Analysis of Opportunities

Freedom to Operate Water Quality-Availability-Perception Analysis of Opportunities Industry Coordination

Freedom to Operate Water Quality-Availability-Perception Analysis of Opportunities Industry Coordination QSSBs, commodity groups, agencies..

Freedom to Operate Water Quality-Availability-Perception Analysis of Opportunities Industry Coordination Best Practices

Freedom to Operate Water Quality-Availability-Perception SUCCESS?

Freedom to Operate Water Quality-Availability-Perception SUCCESS? Unified Approach Tools for Problem Solving Stronger Relationships Ongoing Learning

Freedom to Operate 2014-Strategic Focus WATER BIOTECHNOLOGY SUSTAINABILITY Longevity of Industry TRANSPORTATION Animal Ag

Freedom to Operate 2014-Strategic Focus Consumer Acceptance

Freedom to Operate 2014-Strategic Focus Consumer Acceptance Biotechnology Sustainability Animal Ag

Freedom to Operate 2014-Strategic Focus Consumer Acceptance Biotechnology Sustainability Animal Ag CommonGround CFI USFRA

Freedom to Operate 2014-Strategic Focus Consumer Acceptance GMO Labeling Food Safety Public Health Pesticides Environmental Concerns CommonGround CFI USFRA

Customer Focus Meet our customers’ needs with quality soy products and services to enhance and expand our markets.

Customer Preference We want U.S. soy!

How do we get them to say “We want U.S. soy”? In-depth understanding of market needs / trends Understand and deliver on needs by region & use of soy

Steps to Ensuring U.S. Soybean Quality Document Quality Engage Advance

Beyond the Elevator Evolution Soy Quality