1. Soy protein in baking Gregory Penner Soy 20/20 February 25 th, 2004

2. Overview Canadian soybean production Overview of soy protein uses in baking Market analysis Constraints to growth Summary

3. Soybean composition

4. Soy processing Oil Meal Crush Soyflour Soygrits TSP Fine grind Coarse grind Extruded

5. Soy protein processing Soymeal Soy protein concentrate Soy protein isolate Soluble carbohydrates Soluble fibre 70% protein 95% protein

6. Uses of soy protein in baking

7. What is being used now Heat treated commodity soy flour $0.28/lb FOB Toronto Mixture of GMO/non-GMO

8. Value that is being missed 1.) Natural bleaching Lipoxygenase capable of whitening bread flour Lipoxygenase primary cause of off-flavour 1% to 2% soyflour off-flavour not a problem Enzyme present in soybean Wheat flour

9. 2.) Low off-flavour soybean This picture creates expectations. Products cannot disappoint. Soybean varieties with low off-flavour exist.

10. 3.) Functional synergy with wheat flour. There are soybean varieties that have the capability of interacting positively with wheat flour.

11. 4.) Okara as an additive Okara Protein Fibre Probiotic sugars

12. Market analysis

13. Ontario bakery exports to the U.S. Export value (M Cdn $)

14. Per capita wheat flour consumption

15. Wheat flour consumption

16. Market penetration assumptions

17. Soy flour opportunity

18. Soyflour value

19. Summary of value analysis Soyflour cannibalizes wheat flour sales. Value add in North American markets leverages wheat product sales. Non-GMO/Value add in Europe leverages wheat product sales.

20. Constraints to growth

21. Value chain analysis Variety development Grain handlers Crushing plants Protein processing Soyfood companies Consumers Retailers Food companies

22. Soy protein value chain in Canada Variety development Grain handlers Crushing plants Soyfood companies Consumers Retailers Food companies

23. How the gap has been filled U.S. Crushers Soyfood companies Consumers Retailers Food companies U.S. protein processing

24. Why has this happened? Hexane Soy flour $0.28/lb Non-hexane Soy flour $0.35/lb

25. Existing soy protein suppliers

26. Companies with capacity Hayhoe Mills Jackson Seeds NewlyWeds

27. Lots of other companies considering development of capacity. Need to be able to identify clients.

28. Summary Soyflour use in the bakery industry is growing Value-added opportunities in Canada are being missed. Incorporation of these opportunities will leverage wheat product sales. We need to creatively build a value chain to capture these opportunities.

29. Objectives for today Obtain feedback on market issues Create linkages Determine if perceived opportunities are worthwhile Identify constraints to removing them