Strategic Planning Process AOSCA Board of Directors San Antonio, Texas February 25, 2008

The process we followed……….. Dale Adolphe managed the process and developed the member survey Good input from AOSCA member agencies Responses were compiled into a master document that the Board reviewed prior to the Strategic Planning Session in Texas Member input was reviewed and built into a series of visions and directions for AOSCA

Trends that impact AOSCA and Member Agencies What AOSCA members told us……

Trends….High Impact Consolidation in the seed industry  Traditional seed certification is continuing to decrease and will become a lesser part of AOSCA programs  Expansion into non-traditional areas will be key for some Agencies to remain viable  Fewer seed companies/larger companies involved in more genetically enhanced products

Trends…..High Impact Changing industry with new technologies and new players  Cropping issues, new technology, and application of special requirements will be the biggest challenge (stewardship)  Developments in the bio-economy (feed, food, fiber, and fuel)  Fewer releases of public varieties Globalization has facilitated the movement of seed production to low cost areas of world

Trends……High Impact Shortage of specialized/trained human resources for seed certification positions Growing consumer and media demand for transparency  Tracking, tracing, testing (source identification)  Recent failures of QMS programs in China emphasize the value of third-party oversight Lower Impact – Loss of acres due to land development and other restrictions (this is a general trend across all ag production)

Issues AOSCA needs to consider as it relates to its member Agencies Priorities were based on how often Agencies mentioned these…..

Issues to consider…..High priority Need to be seen as a partner/resource for seed certifying agencies Developing a strengthened relationship with USDA  More recognition or acceptance of AOSCA’s official status

Issues to consider…….High Priority Process Auditing versus Product Testing  Increasing need to verify novel biotech traits Do we influence the industry or react to it?  Meeting the needs of the marketplace  Lack of exposure to much of the value chain Provide a framework for seed certifying agencies for more consistency  Assuring standards are met  Clamping down on Agencies not following procedures (compliance and enforcement)

Issues to consider….Lower Priority All standards currently in use should be confirmed or revised, based upon the most relevant data and customer acceptance  Assuring that crop standards are appropriate for the current science and production methods OECD is and will be a challenge when used as a protectionist tool for the EU seed industry AOSCA might compete with Agencies on a direct basis for non-certification business

AOSCA – Strengths, Weaknesses, Opportunities, and Threats

AOSCA…….Strengths Diverse knowledge base built upon the collective skill set of member Agencies Experience in tracking/traceability systems Competent central office staff Independent, third-party nature of services  Both real and perceived  Long-term history of providing services

AOSCA…….Strengths AOSCA does more than facilitate movement of seeds  National Variety Review Boards  IP and QA Programs  Quality Management Systems  Standards for product-specific programs Ability to deliver programs locally, regionally, nationally, and internationally

AOSCA……Weaknesses Regional differences in program delivery and organizational structure  Too many differences in methods of operation to entice corporate or gov’t. units to use AOSCA  AOSCA agencies differ in the quality of service  Some have a reputation for poor quality/service  Some Agencies have not competed for business Viewed by industry as being tied to public varieties

AOSCA…….Weaknesses Dependent upon the success of member Agencies  Little, or no, ability to influence Agencies  Agencies compete rather than cooperate At commercial grower level there is little knowledge of AOSCA existence AOSCA has done little to promote certified seed Lack of outreach to non-member country certification entities

AOSCA….Opportunities Expand international membership  Leadership role to attract/support emerging nations Implement accreditation programs Keep AOSCA involved in activities that provide opportunities for exposure  Need to have more involvement in the regulatory process

AOSCA…..Opportunities Working with newly developed value traits to determine standards for purity/attributes Opportunities for traditional certification to serve a new customer base  Vegetables, organic seed, bio-economy) New methods of varietal purity and identity testing

AOSCA…..Threats Industry consolidation Financial viability and ability of some member Agencies to exist as they currently do Competition responds to new and emerging opportunities more timely than does AOSCA Difficult to identify qualified individuals for staff vacancies  The future of many Agencies depends on ability to maintain personnel/funding during a transition leading to new service opportunities

Vision Elements…… The direction AOSCA should take and how it will achieve its vision

AOSCA…..Vision Elements Structure  Organization that responds in a timely manner Scope  Programs and information exchange on a multi- Agency, national, and international basis Recognition  AOSCA standards that enhance worldwide seed quality and crop productivity Cooperation  Build relationships and operate as a partner and resource in worldwide life-science industries

Each Vision Statement……. ….has a number of “To” statements that begin to provide the outline of the steps AOSCA needs to take to reach its vision Each “To” statement will be followed with its own set of “By” statements. “By” identifies how we will achieve each goal and what resources or people it will take. Member involvement and ideas are welcome.

Structure: An organization that responds to needs in a timely manner To adopt more rapidly to the changes in the seed industry To maintain flexibility in programs to allow for opportunities and change To offer products and services beyond AOSCA’s current mission To maintain effective leadership (Voluntary, Staff, and Board) To improve outreach to members and stakeholders

Scope: Programs and information exchange on a multi-Agency, national, and international basis To provide clients an internationally recognized “field to customer” third-party verification processes, including seed certification To be the recognized, third-party independent provider of quality assurance and auditing services

Recognition: AOSCA standards enhance worldwide seed quality/crop productivity To build awareness of the value of certified seed across the agricultural value chain To promote seed certification and the use of certified seed To focus on development of international seed certification standards and procedures To work toward acceptance of equivalence of AOSCA and OECD

Cooperation: Operate as a partner and resource in worldwide life science industry To work closely with all stakeholders and regulators responsible for trait stewardship To promote the protection of intellectual property

The next steps….. Review the progress so far with members at the Regional meetings Verify that we are on the right track Develop the “By” statements (Action Plan) Identify how to achieve our goals and the resources it will take  Time  People – volunteers, staff, leadership  Financial – investments in AOSCA’s future

Thoughts and Ideas……