1. Agricultural Product Differentiation Industry Perspective November 15, 2004 CORNY GALLAGHER AGRIBUSINESS EXECUTIVE

2.   More than $14 billion in commitments to the industry sector.   Clients value our industry knowledge and expertise as well as our ability to provide a complete range of financial products and services. Bank of America is one of the largest providers of financial services to agribusiness and food processing industries throughout the United States.

3. FOOD FORESIGHT PRIORITY TRENDS FALL 2004  GATHERS TRENDS AND ISSUES INFORMATION FROM AROUND THE GLOBE  IDENTIFIES EMERGING ISSUES AND TRENDS

4. 2004 TREND 1   PRODUCERS FIND THEMSELVES IN AN EVER-TIGHTENING VICE:  Increasing scrutiny  Must trace and document practices  Increasingly legislation and regulation leads to unequal playing field for U.S. agriculture

5. 2004 TREND 2   VULNERABILITIES TO TERRORISM ADD A NEW WRINKLE OF INSECURITY AND ARE REDEFINING “ROUTINE” AGRICULTURAL PRACTICES:   Department of Homeland Security will play increasing leadership role   GMO wars will continue and trickle-down

6. 2004 TREND 3   BIG GLOBAL COMPETITORS AND MARKETS ARE ENGINEERING A WILD RIDE FOR THE AGRI-FOOD CHAIN:   Rising affluence and demand for high- value products with tastes of home

7. 2004 TREND 4   OBESITY IS OVERWHELMING THE DIET/HEALTH LANDSCAPE : -Is high fructose corn syrup the real villain? - Is it caused by the micronutrients?   Perception shifted from food is healthful to food is bad for me

8. 2004 TREND 5   NEW SCIENCES AND GENETIC INNOVATION ARE ACCELERATING THE ARRIVAL OF A NEW FRONTIER   PERSONALIZED NUTRITION   YOUR OWN RUBICS CUBE RATHER THAN THE FOOD PYRIMID

9. 2004 TREND 5

10. 2004 TREND 5 CONCEPTS   Genotyping - individuals' genetic make-up   Metabolic profiling finger-stick tests   Nanotechnology, in wrong hands used as bio terrorism?   DARPA is driving radical nutrition research in biochemical pathways and processes like ketogenic diets   micronutrients in certain foods lead to new opportunities

11. 2004 TREND 6   WHAT CONSUMERS WANT, CONSUMERS WILL GET...   Shift to a genuine "pull" marketing environment   "if you don't like this, you might like this" suggestions tied to likes and needs

12. 2004 TREND 7   FOOD SERVICE SECTOR IS SURGING   Dominant share of consumer food spending   Innovating through an explosion in ethnic flavors and cuisine

13. 2004 TREND 7 CONCEPTS   Confluence of mega trends; the dramatic rise in ethnic foods, blurring between "formal" and "casual" eating   Asian flavors are the top trend gainer in the top 200 chains   Food service providers must offer more choices

14. FOOD SYSTEM OPPORTUNITIES  Health benefits of ag products and parts.  Changing demographics = New products.  Food Service Chefs looking for menu ideas.  Health Consciousness driving product choices. choices.  Environmental improvement. It’s not waste it is …..