1. IFIF/FAO Business Meeting - Rome 2006 Agriculture and the Animal Feed Industry

2. Introduction Introduction > World population and GDP growth driving meat consumption, more meat means more grain … feed demand and animal feed supplements are rising > Global customers have greater buying power and feed grain raw material prices have been favorable … but changes are in store for the global poultry and livestock industry … the result of the boom in ethanol and biodiesel production. > Health and Food Safety concerns are putting pressure on better quality feed ingredients > There is growing concern with environmental issues in animal agriculture

3. Source: United Nations, FAO Million Tonnes World Population Growth and Meat Consumption World Population Growth and Meat Consumption Billion People

4. Source: United Nations World Population Actual Forecast Billion People

5. Source: IMF September 2006 World Economic Growth 2005 Percent Annual GDP Growth

6. Source: FAO World Per Capita Meat Consumption Kg/Person/Year

7. Source: FAO Kg/Person/Year World Per Capita Meat Consumption by Region

8. Source: FAO World Meat Consumption 1995 - 2030 Million Tonnes

9. Source: Brilliant Pioneer Consultant China’s Meat Consumption 2005 - 2030 Million Tonnes Beef Poultry Pork Dairy Eggs

10. Source: Feed International January 2006 World Compound Feed Production Million Tonnes

11. Source: USDA US Meat Production and Exports Billion lbs

12. Source: USDA China’s Meat Production and Exports 000 Tonnes CWE

13. Source: USDA Brazil’s Meat Production and Exports 000 Tonnes CWE

14. Source: Earth Policy Institute, Renewable Fuels Association World Ethanol and Biodiesel Production Billion Gallons

15. Source: USDA, PotashCorp US Corn Used for Ethanol Billion Bushels 18% 6% % of total US corn use 25-30%

16. Source: FAO World Grain Consumption 60% 45% Billion Tonnes

17. Source: USDA September 2006 World Grain Production and Consumption Billion Tonnes US, China and India produce over 40% of the world’s wheat and coarse grains. Near Perfect Weather Year Production Gap Wheat & Coarse Grains

18. Source: USDA September 2006 World Grain Stocks Million Tonnes Percent USDA’s estimated grain ending stocks-to- use ratio of 15.5% for 2006/07 will be the lowest in over 30 years. Wheat & Coarse Grains

19. Source: USDA September 2006 China’s Corn Supply and Demand Million Tonnes Stocks Continue to Fall Production Gap Exports Declining Favorable Production Years

20. Thank You