1. OATS – Enhancing The Value A European Breeding Perspective Chris Green Fargo, July 2006

2. If we are to enhance value we need to know where value is created. - Who adds it? - Who benefits?

3. And here lies the problem....

4. Oats are perceived by the consumer as wholesome, healthy, natural and good for you ……… but upstream!

5. They are regarded as… – low value cereal – minor crop – niche interest – uncompetitive – in agricultural recession – few champions

6. As a breeder we are gravely concerned about the migration of value from field to food store. To arrest this migration we have to find a new approach.

7. Easily substituted on price Unique properties

8. Nitrogen Manufactures Fertiliser Compounders Pesticide Manufactures Seed Breeders Machinery & Equipment Manufacturing Tractor Manufacturing Fertiliser/ Pesticide/Seed Distributors Seed Merchants Machinery Dealerships FSSFarmers Grain Marketers Mills Animal Feed Manufactures Oat Feed Oat Starch Flour Breakfast Manufacturer Retailers Food Processors Bakeries Industrial Applications Pharmaceuticals Fine Chemicals Confectionary Body care Cosmetics Oat Starches Agriculture Contractors Oat Oil Oat Supply Chain

9. “Where one or more partners identify the benefits of working in a more integrated manner to derive a sustained value and optimise their position." Definition of Value Chain

10. Nitrogen Manufactures Fertiliser Compounders Pesticide Manufactures Seed Breeders Machinery & Equipment Manufacturing Tractor Manufacturing Fertiliser/ Pesticide/Seed Distributors Seed Merchants Machinery Dealerships FSSFarmers Grain Marketers Mills Animal Feed Manufactures Oat Feed Oat Starch Flour Breakfast Manufacturer Retailers Food Processors Bakeries Industrial Applications Pharmaceuticals Fine Chemicals Confectionary Body care Cosmetics Oat Starches Agriculture Contractors Oat Oil Oat Value Chain

11. bio technology seed & crop inputs grower grain handler processor animal producer food manufacturer Depth of resources and expertise across the breadth of the value chain Monsanto Cargill Joint Venture

12. Plant Breeder and Crop Developer -IP Processors/ Consumers GROWERSGROWERSGROWERSGROWERS Value integration Bridging the Knowledge Gap

13. Competition as we have it today is based on separate entities – in future I believe competition will be in strategic value chains …..with assured quality, shared profits and risks and responsive adaptation.

14. YieldDisease resistance Market attributes Agronomy Plant breeding is about harnessing resources and knowledge to deliver improvements. Improve growing cost efficiency – main benefit is with the grower Quality & market attributes benefit the processor or end user

15. These can all be quantified in respect to adding value

16. In Europe royalty is collected on Farm Saved Seed at 50% of the Certified Rate….. …yet the IP benefits/value are the same

17. The Future? Seed Hectares planted We are looking at a new royalty system

18. IPRA -Intellectual Property Royalty Agreement Creates a new model which we hope will apportion value more appropriately and stimulate innovation BreedersGrowers Mills, processors, bakeries, others

19. Benefits In essence…Get Connected! Engages the chain for collective benefits Provides assurance Develops partnership approaches Dynamic allowing value added to be rewarded Adopt new ways of thinking Sustainable Encourages contract production, improving logistics etc. Fair and equitable and shares value

20. What Do We Need to Do? Even with oats we are in the innovation business. So the best way to predict the future……

21. Is to invent it!

22. “Through innovation, knowledge and collaboration improve the value and uptake of oats”. Our Oat Goal