1. 2007 International Sweetener Colloquium Bill Hejl, President World Association of Beet and Cane Growers

2. WABCG World Association of Beet and Cane Growers 5.6 Million Farmers Who associate to promote beet and cane production Who is the WABCG?

3. WABCG 31 Countries: Beet: AustriaItaly Belgium Japan Canada Netherlands Denmark Spain Finland Sweden France Turkey GermanyUnited Kingdom United States Cane: AustraliaSouth Africa BrazilSudan** Fiji Swaziland India Tanzania Jamaica Uganda Kenya Zambia Malawi Mauritius Mexico Pakistan World Association of Beet and Cane Growers

4. WABCG 2007 International Sweetener Colloquium Sugar is a Byproduct

5. WABCG 2007 International Sweetener Colloquium 50 Million Beet and Cane Growers Produce Energy

6. WABCG 2007 International Sweetener Colloquium Beet and Cane Growers: Production increases Increasing demand: Food & Fuel Higher fuel prices drive demand for more sugar

7. WABCG 2007 International Sweetener Colloquium Balancing Food and Energy Result: Higher prices Government action

8. WABCG 2007 International Sweetener Colloquium Balancing Food and Energy Will conversion to Bio-Fuels be: Efficient? Stable? Sustainable? It must be: High prices have driven investment Better than trade deals

9. WABCG 2007 International Sweetener Colloquium Balancing Food and Energy What will the conversion of more sugar to energy do to sugar-as-food markets?

10. WABCG KWS Increase sugar per hectare from 10 Metric Ton to 15 - Breeding - Winter sown beets 2006 WABCG Meetings

11. WABCG EU Reform Close 33-50 factories in 2007 alone 21 million ton down to 12 by 2013 2006 WABCG Meetings

12. WABCG 8.035 8.027 – 8.035 Minutes

13. WABCG “Bio-Fuel Cane” Japan 300% more bagasse Now Bio-Fuel corn 2006 WABCG Meetings

14. WABCG Some Facts About India Geographical area (million hectares)328.73 Land utilization (million hectares)306.06 Population (millions)1055 Rural population (% of total)72.2% Work force (millions)402.5 Per capita land (hectares)0.33

15. World Sugar Balance (Million tons, raw value) 2005/06 Surplus: 2.7 Million Tons 2006/07 Surplus: 6.1 Million Tons

16. ? World Prices ? ? ?

17. Sugar Consumption Growth in Major Consumers

18. Future Sugar Consumption (million tons) 13 Demand Growth 2005 – 2009 28 Demand Growth 2005 – 2013

19. Brazil’s Sugar and Ethanol Sugar ProductionUp 9 Million Tons Sugar ExportsUp 10 Million Tons Ethanol ProductionUp 11 Billion Liters Ethanol ExportsUp 3 Billion Liters

20. World Sugar and Fuel Ethanol The Global Fuel Ethanol Market 900 Million Gallons or 1.5 Days of Global Gasoline Consumption

21. What happens if (or when) crude oil prices fall? What happens if (or when) crude oil prices rise further? World Sugar and Fuel Ethanol Will Ethanol Destabilize World Sugar Markets?

22. U.S. Ethanol Imports Perfect storm of high oil prices & MTBE transition is boosting U.S. imports of ethanol in 2006. YearTotal U.S. Ethanol Imports 2002 46 million gallons 2003 61 million gallons 2004 161 million gallons 2005 115 million gallons 2006 523 million gallons YTD Perfect storm of high oil prices & MTBE transition is boosting U.S. imports of ethanol in 2006. YearTotal U.S. Ethanol Imports 2002 46 million gallons 2003 61 million gallons 2004 161 million gallons 2005 115 million gallons 2006 523 million gallons YTD That’s 3,322,000 metric tons of sugar

23. U.S. Ethanol Imports 2006* Year to date = 523 million gallons of ethanol (nearly 2 billion liters). Brazil accounts for 65% of imports or 343 million gallons (1.3 billion liters) YTD. CBI nations = 106 million gallons (401 million liters) YTD, mostly from Jamaica. DR-CAFTA nations (El Salvador) = 14 million gallons (55 million liters). Year to date = 523 million gallons of ethanol (nearly 2 billion liters). Brazil accounts for 65% of imports or 343 million gallons (1.3 billion liters) YTD. CBI nations = 106 million gallons (401 million liters) YTD, mostly from Jamaica. DR-CAFTA nations (El Salvador) = 14 million gallons (55 million liters). *As of Nov. 1, 2006, from the U.S. International Trade Commission We’ve bought 42% Of Brazil’s exports

24. Remember 1,188BBls? Tar sands and coal gas Only add 3BBls/year 4.5% in 2005

25. 13 14 55 60

26. More Sugar to Ethanol Less Sugar for Food Use

27. Sucrose Ethanol Corn Ethanol Cellulosic Ethanol

28. Sugar Energy Food

29. WABCG 2007 International Sweetener Colloquium Beet and Cane Growers: Production increases Increasing demand: Food & Fuel Higher fuel prices drive demand for more sugar

30. WABCG 2007 WABCG Meetings July 1-14, 2007 Brisbane, Australia