Soy Milk Presentation by Ysaac Akinin Oct 2009 WISHH- Illinois

SOYMILK ECONOMICS & TECHNOLOGY MEDIUM TO LARGE SCALE

National Soybean Research Laboratory (NSRL) YSAAC AKININ

[email protected]

Director International Business DevelopmentTel. +1 786 426 5750 Fax. +1 954 455 2818

ProSoya Inc.2-5310 Canotek Road, Ottawa, Canada K1J 9N5

Tel: (613) 745-9115 Fax: (613) 745-2045

2009 MIDWEST SOY PROTEIN WORKSHOP

Champaign-Urbana, Illinois. Oct. 6-9 2009

MILK FROM THE EARTH

Midwest Workshop Illinois Oct. 6-9 2009national soy research laboratory

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SOY COMPOSITION

SOYMILK PHYSICS 101

Protein Content 3.5% Extraction Efficiency η= 75 % Declared Prot. Cont. Residual Humidity Final Yield

1Kg = 30

Soymilk @ 3.5 % Protein

SOYMILK ECONOMICS 101

1 Bushel of Soy beans Costs (As of Oct. 2009) US$10 eq. to 60 lbs.Lets Assume an additional 15 % to freights and quality premiums

Yield of Soy milk in equal conditions of Dairy Milk i.e. @ 3.5 % Protein, 1 Kg. Soy Beans yields 7.2 Lts. of Milk@ 3.5 % Protein, 1 Kg. Soy Beans yields 7.2 Lts. of Milk

Cost of Milk in Farms Around the WorldUS$ 0.35 to 0.42 per liter

Cost of Soybeans US$ 0.42 per Kg.Yields 7.2 liters

US$ 0.40 can buy 1lt. Of Milk in the Farm or 7 lts. Of Soymilk

Dimensional Comparative Analysis

A Typical Soybean Crushing Plant2,000 M. Tons of Soybeans per Day

79,000 Gal. Oil /Day

or

3,8000,000 Gal.Soymilk per Day

A Medium Size15,000 Gal./day of Soymilk Plant Needs 8 M. Tons of Beans per Day

THIS SUPPLIES MORE THAN 200,000 CUPS OF MILK DAILY

LACTOSE INTOLERANCE MAP

Characteristics of the World Market

An industry or market can be analyzed for its attractiveness to a particular company or sector of business.

A market can be chosen to match an existing technology.A technology can be created to cater a particular market→ ProSoya

This will always bring best results•Explosive growth•Non mature•Going through a learning trial & error process.•Consolidation happening parallel to bubble bursting.•Many small players in the scenario & startups and entrepreneurs coexisting with the big global players.•Many understaffed companies with lack of professional expertise and technical know how.•Lack of expertise throughout the industry and academia being a new industry.•Companies start in the business with conscience of change to adapt flexibly to trends and tastes that are being set. Moving with the music.•Government intervention plays big role.• In some countries the expression Soy Milk is not allowed

FLUID MILK CONSUMPTION PER CAPITA 1992 1993 1994 1995(p) 1996 (f) 1997NORTH AMERICA Canada 104.1 101.8 102.3 101.4 99.53 99.17Mexico 54.28 55.3 54.77 54.16 54.71 55.34

United States 97.81 103.8 103.2 102 102 101 100 SOUTH AMERICA Argentina 51.88 48.26 59.64 61.92 62.7 63.45

Brazil 49.24 52.42 55.21 69.45 72.85 76.42

Chile 10.11 10.64 10.85 11.21 11.88 12.22 30Peru 8.6 9.22 9.09 9.13 9.76 9.38

Venezuela 13.16 13.37 10.69 9.73 9.28 9.33

Europe Austria 139.4 140.3 142.6 156.6 156.5 156.6

Belgium-Luxembourg 40.04 40.93 41.13 38.56 39.68 38.62

France 79.01 78.05 76.28 76.52 75.72 75.38

Germany 92.3 71.01 71.44 72.02 72.66 72.97

Ireland 186.1 188.9 191 190.4 190.7 190.3

Italy 72.67 70.81 68.08 63.8 60.07 57.38

Netherlands 141.1 130.1 113 112.1 108.7 107.5 110Spain 109.6 107.4 111.8 110.7 109.1 108.8

United Kingdom 121.5 124 124.2 126.1 124.7 123.2

Poland 172 163.2 156.8 149.6 148.2 143.7

Romania 137.2 146.7 163.3 185.7 189.2 189.5

ASIA India 1/ 32.37 31.59 30.45 30.98 32.57 33.57

China 2.69 2.68 2.83 2.95 3.11 3.31 3.5Japan 41.45 40.48 42 41.11 41.33 41.18

WHEN CHINA REACHES THE LAT.AM LEVEL, THE 1.2 BILL.PEOPLEWILL CONSUME 32 BILL. LTS/YR. EXTRA TWICE TODAY’S USA CONSUMPTION

CONSUMPTION OF SOYMILK IN THE USA

TOTAL FLUID DAIRY MILK CONSUMPTION300 Mil People @ 100 Kg./yr = 30 Bil. Kg900 Mil US$ @ 1$/Lts = 0.9Bil. KgActual market in Soymilk is 3% of DairyNext 4 years consumption will duplicate to 6%

USDA Final Rule on Fluid Milk Substitutes for School Nutrition ProgramNUTRIENT REQUIREMENTS FOR SOY BEVERAGESNATIONAL SCHOOL LUNCH AND BREAKFAST PROGRAMS

Nutrient Per cupCalcium 276 mgProtein 8 gVitamin A 500 IUVitamin D 100 IUMagnesium 24 mgPhosphorus 222 mgPotassium 349 mgRiboflavin 0.44 mgVitamin B 12 1.1 mcg

•USDA recommends that beverages do not exceed the fats and sugar levels found in chocolate-flavored whole milk.

Business OpportunitiesBusiness OpportunitiesBusiness OpportunitiesBusiness OpportunitiesRevamping and re-engineering of white elephant dairies or other fruit processing plants affected by economical shifts and changing trends

Development programs for depressed regions funded by multilateral organizations or local governments

Cataclysmic events, although eventual and unpredictable, very much persistent in time and when they occur generate gigantic peak demands of strategic foods.Cataclysmic events, although eventual and unpredictable, very much persistent in time and when they occur generate gigantic peak demands of strategic foods.

Explosive trends changing consumption patterns:•Negative news about cancer from dairy products•Conscience about cholesterol-free food.•General growing intolerance to lactose and milk proteins.•Rejection to consume animal toxins and shifts towards vegan.•Positive news about cancer-reducing effects of soy.•Positive effects of soy in Menopausal Syndrome in women.•Price and novelty•Explosive growth of dairy consumption in densely populated countries.

Market NichesMarket NichesMarket NichesMarket Niches

Military Supply2.5 /000 of the

Total Population+10 Million

Military Supply2.5 /000 of the

Total Population+10 Million

School ChildrenUnder 18 +15 %

+900 Million

School ChildrenUnder 18 +15 %

+900 Million

Milk PlansApplied to Critical

Poverty Levels2 Billion

Geriatric CarePopulation Over 75 years 2.5 %150,000,000

Geriatric CarePopulation Over 75 years 2.5 %150,000,000

ProSoya™ Soymilk Base Line AVS 1,000 L/h to 10,000 L/h

ProSoya™ Technology ApplicationsTARGET PRODUCTSRegular and sweetened Soymilk plus light low fat versionsFruit Juice Added and other flavor soymilk based soft drinksYogurts, drinkable and set type, with and without fruits and/or flavors addedTofu and new generation, soy-based cheeses and cheese replacers.Dehydrated powder, sweet condensed and evaporated soymilkLiquid, powder and other product mixes of dairy and soy milk

ProSoya™ Product AdvantagesTARGET PRODUCTSDrinks are easier to formulate with a more neutral flavor and higher concentration base.•Yogurts have more body without the use of viscosity modifiers or addition of expensive taste adding SPI. (Soy protein isolates)•Firmer, more lasting Tofu and cheese bases.•Whiter soymilk powder with less beamy flavor and more real condensed and evaporated milk substitutes.•Better ingredient base for main industrial applications in Bakeries and Ice Cream factories.

ProSoya™ Technology Advantage

•Flexible in capacity from 200 lts/hr to 10,000 lts/hr•Modular design and skid mounted alternatives.•High concentration, up to 5.5 % protein in milk based obtained.•High solid content, up to 30 % more than some conventional processes•Easier formulation and standardization of final formulas.•Capacity to dehydrate into milk powder with savings in energy derived from a more concentrated base.•Less costs to transport when shipping a more concentrated soymilk base.•Airless Cold Grinding℗ process yields a more stable product that translates into:

•Less oxidation and better flavor.•Better & more presence of valuable oils like omega III and IV and higher presence of isoflavonoids. •Les protein denaturalization with subsequent precipitation that yields sediments and chalky flavor.

•Some process controls determined by physical and natural self occurring parameters and less complicated electronics, making the process more foolproof and reliable.•Flexibility to work more or less personnel depending on necessities and resources.

Why ProSoya™ ?

1. Companies with most advanced patents and on soymilk technology.2. Hundreds of customers in more than 45 countries.3. Helping customers with their projects, products and business in general.4. Most gentle treatment and best flavor.5. Financing capabilities.6. Backup structure from our professionals in many fields.7. Continuous research to improve processes and develop better products.8. Participated in the development of the most sold products worldwide.9. Marketing expertise and product manufacturing experience.10. Possibilities of licensing technology in certain markets for exclusive

territories.11. Not compromised with heavy capital equipment manufacturing which

gives ProSoya the freedom to continually improve, locate the best alternatives and work based on results, and not on equipment.

12. We are only Soya and we work from the bean to the grocery bag