1. North Dakota Wheat Commission State Meeting December 2010

2. Biotechnology Messaging shared with customers Market Assessment Research International Participation Principles of Commercialization Outlook

3. Messaging - What is Biotech? Bio-technologically derived crops can also be referred to as: –Genetically modified organisms (GMO, GM) –Genetically enhanced (GE) –Transgenic (TG) –Transformation Using modern biotechnology to insert DNA from one species into the DNA of another species, for purposes of: –Addressing agronomic issues limiting yield or quality –Addressing processing or end product issues limiting productivity, quality or nutrition –Production of nutraceuticals for human health Golden rice (vitamin A)

4. Messaging - Global Expansion of Biotech

5. Messaging - Countries With Biotech

6. Messaging - The Need for Biotech World harvested Area, last 25 years: - World wheat harvested area down 2% - World corn harvested area up 20%

7. Messaging - The Need for Biotech Source: USDA/ERS - Agricultural Baseline Projections wheat corn U.S. National average return per hectare for major crops

8. Messaging - Non-biotech Markets U.S. Wheat Associates will work with industry stake holders to assure that non-biotech wheat is available to the market –Non biotech wheat will cost more over time due to the yield/productivity lag. Testing and Handling Systems have been developed for non-biotech corn and soybeans –Similar systems will be developed for IP wheat The key is a functional tolerance for biotech wheat allowed in non-biotech wheat shipments –CODEX is considering establishment of such a tolerance for Europe

9. Messaging - Where Do We Go From Here? At the end of the day biotech wheat has to benefit both the buyer and seller (Consumer and Producers) –Working together we can make that happen through (Communication and Understanding) –We can achieve mutual benefit, and assure sustainable supplies of high quality wheat reasonably priced well into the future. –The key will be a “tolerance” for biotech material in non-biotech shipments

10. Market Assessments

12. Criteria

13. 23 organizations representing trade interests from around the world –Europe, Mexico, Canada, US, Australia, Brazil, India, Argentina, Russia, China, Paraguay –Providing input to officials, NGOs, others on the impact and risks regulations have on the trade of biotech products –Low Level Presence, Adventitious Presence, Liabilities

14. Trilateral Biotech Statement www.uswheat.org - What We Do - Biotechnology

15. Principles for Commercialization 1.The technology provider initiates an informative dialogue with the USW/NAWG Joint Biotechnology Committee (JBC) prior to submitting for regulatory approvals in the U.S. 2.Regulatory approvals for food and feed use must be secured in major wheat export markets that will be affected where a functioning regulatory system exists. 3.Commercialization of the trait must not impair the ability of non- transgenic wheat to meet commercially recognized thresholds for the low-level presence of transgenic traits. Appropriate international tolerances for transgenic wheat in non-transgenic shipments must be established and accepted in major export markets. Anticipated thresholds range from 0.9% to 5.0%. Endorsed by U.S. Wheat Farmers

16. 4. An accurate, economical and timely trait detection test must be provided by the trait developer prior to commercialization. 5. The primary responsibility for education and outreach for new traits will remain with the technology provider. USW and NAWG will actively help seek buyer acceptance and will provide guidance, assistance and resources. 6. The technology provider must demonstrate stewardship of the technology, including education and outreach to growers to assure compliance with agronomic and grower stewardship practices specific to the trait. Principles for Commercialization (continued) Endorsed by U.S. Wheat Farmers

17. Principles for Commercialization (continued) 7. We have examined both certified seed and point-of-delivery value capture models. While there are advantages and disadvantages of either approach, we believe the certified seed model will be most acceptable to the value chain and is the preferred approach. Investment in agricultural technology by private parties requires a return on that investment. We support the protection of intellectual property, including education about the importance of complying with seed and stewardship contract provisions and enforcement of those provisions when necessary. Technology traits should be encouraged for adaption into public wheat varieties. Endorsed by U.S. Wheat Farmers

18. Needs and Opportunities Increased population –Not in major wheat producing regions Increased incomes –Developing countries –Per capita Increased trade opportunities –Increased production needed

19. World wheat consumption 660+ MMT 30 year down trend +/- 900 MMT Demand in 40 years (+ 240 MMT) 229 MMT 239 MHA World Population Growth: Projected to 2050 2050 +/- 9.5 Billion 2010 6.8 Billion

20. Projected World Population Growth 2010 to 2050 (From 6.8 to 9.5 billion?) Southern Hemisphere Wheat Belt Northern Hemisphere Wheat Belt Mid-Latitude Demand Concentration Latin America + 300 Million Africa +1 Billion Asia +1.8 Billion

21. World Wheat Trade If only 50% of the 240 MMT increased demand is traded internationally… 125 MMT 250 MMT Trend in “other” importers denoted ( ) 2020 2030 2040 2050 50 MMT l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l ?

22. Information is updated regularly on the U.S. Wheat Associates and National Association of Wheat Growers websites and distributed via the both the U.S. Wheat and NAWG Wheat Letters www.uswheat.org www.wheatworld.org www.uswheat.org www.wheatworld.org