St. Louis, MO High Oleic Soybean Oil USB Connections 2012 Overview

High Oleic Soybean Oil Overview for Human Utilization

Photo courtesy of Qualisoy

USB Connections 2012St. Louis, MO December 4-5, 2012

Consumer Food ChoicesIt’s not just about the food…

The “Story”● Government Policy● Environmental Footprint● How was it produced – GM/non-GM/Organic● Evolving Social Values (Big Ag / Big Food)

Seed Company CPG/FSGrower Processor Consumer

California’s Prop 37 – tip of the spearhead?● Washington, Oregon, Vermont, Connecticut considering

similar legislation ● 30 other states working to require GMO labeling

● Issue needs to be based on “good science” but how do we as American agriculture best win the hearts of our consumers?

GMO Labeling & Consumer Perception

Consumer Expectations From Biotechnology

Do you feel that biotechnology will provide benefits for you or your family within the next five years?

Source: 2012 IFIC CONSUMER PERCEPTIONS OF FOOD TECHNOLOGY SURVEY

If yes…What benefits do you expect?

Nutrition/health benefits 35%Improved quality/taste/variety 22%Price/economic benefits 21%Improved crops/agriculturalproduction 13%Safer foods 11%Reduced pesticides/chemicals 3%Other 26%

Seed Company CPG/FSGrower Processor Consumer

Biotechnology can and should be used to address the needs of today’s consumer

Opportunities

● Health & Nutrition ○ Improved composition

● Food ○ Improved functionality and taste○ Increased longevity

● Environment○ Improved sustainability

Food Industry Needs

Key Factors Influencing Oil Selection

● Flavor● Health Perception● Performance/Functionality● Cost Effectiveness● Availability/Reliable Supply

Are there oils which meet both consumer and food industry needs?

Seed Company CPG/FSGrower Processor Consumer

Consumers Value Sustainable Production

Q: How important is it to you that the food products you purchase or consume are produced in a sustainable way?●Very Important 27%●Somewhat Important 42%●Neither important or unimportant 25%●Not Very Important 4%●Not At All Important 2%

Source: 2012 IFIC CONSUMER PERCEPTIONS OF FOOD TECHNOLOGY SURVEY

~70% of consumers believe that it is important that food products be produced in a sustainable way

Definition of “ sustainability”Long-lasting/ Doesn’t stop or run out/shelf life 47%Stays the same/consistent 17%Green/no impact on the environment 8%Biotechnology 1%Other, Don’t know, Nothing, Missing/Refused 49%

Q: What does the word “ sustainability” mean to you? [OPEN-END]

SustainabilitySoybean has a good story to tell . . .

● Yield has increased 55% (bushels/acre) between 1980 and 2011*\

● Environmentally-beneficial, conservation tillage is now used on over 65% of U.S. soybean acres*

● Only 9% of the crop is irrigated, per acre irrigation water applied has remained flat

● Soybeans require a limited amount of nitrogen fertilizer which reduces the total amount of energy used to produce the crop

Field to Market: The Keystone Alliance for Sustainable Agriculture * 2012 Environmental and Socioeconomic Indicators for Measuring Outcomes of On-Farm Agricultural Production in the United States

Farm to Fork Traceability Across the Supply ChainDoes it apply to the Soy Industry?

Seed Company CPG/FSGrower Processor Consumer

● Do we have a story that needs to be better communicated to today’s consumers?

● Are there innovations in processing technology (i.e. more “natural”) that could influence consumer attitudes, or does it even matter?

● Food Safety Modernization Act (FSMA), signed into law in early 2011. The law requires all companies in food supply chains to be able to trace foods back to the point of origin – do we have the right tools in place?

High oleic soybeans are opening a new chapter for

biotechnology ... direct benefits for the

downstream customer.

Thank You