Bill Allison, Soybean ProducerSeptember 15, 2005

From Cooking oil to Car seatsChanges in Soy Utilization and Opportunities for Halton Region

Soybeans in Canada

• Ontario grows over 80% of the Canadian production

• Soybean is the most economically important and prominent crop in Ontario

• Climate, skill, and experience of the industry result in soybeans of the highest quality

2004 Ontario soybean statistics

Area harvested

(acres)

Average

Yield (bu/ac)

Production ('000 bushels)

Production('000 tonnes)

Ontario 2,300,000 39.6 91,000 2,476.6

Halton Region

22,700

(0.9%)

33.0 740

(0.8%)

20.1

(0.8%)

Soybean distribution

• About 1/3 of production is exported• Remainder are commodity beans for crushing

Specialty soybeans

• Exported beans and those for traditional food uses are produced according to very specific standards of Identity Preservation (IP)

• In IP, Canada is recognized as the world leader based on our superior:– Farm management– Handling infrastructure– Soybean breeding and development program

Commodity soybeans

• Beans that remain in Canada are typically crushed to produce meal and oil

• Demand for a protein source for livestock actually requires meal to be imported

• Oil is typically used in food, and is the prominent vegetable oil in North America

Changing the status quo

• Depressed prices for commodity beans

• Industry looking for new uses and opportunities to add value domestically

0

20

40

60

80

100

120

140

160

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1970 1975 1980 1985 1990 1995 2000 2005

Pu

rch

asin

g p

ow

er

(197

1 $/

acre

)

Purchasing power

Regressed value

Oil Meal

Edible Oil:•Vegetable oil•Margarine•Ingredients

– Lecithin– Sterols– Vitamin E

LivestockFeed:

Soyfoods: •Full flour•Tofu•Soymilk•Soy dairy •Soy sauce•Okara

Bioproducts:•Biodiesel•Lubricants•Plastics•IntermediateChemicals•Fatty acids

Edible:• Ingredients – flour – concentrate– isolate– TVP

New foods with soy:•Modern meat analogues•Nutrition bars/ drinks•Cereals•Bread and baked goods•Pasta

Typical uses

Advancing uses!

Traditional food use

SoybeansSoybeans

Support new demand for soy• Soy protein as a food ingredient

• Soy oil based bio-products

Protein price

Health benefits

Functionality

Where the price is better vs. petroleum based products

Equal functionality

Buyer interest / demand

Evolving Soybean Utilization

2002 2020

Soy flour ingredients

Enzymes

Bio-chemicals

Soyfoods

Seed Production

Export Other

Food Grade Export W. Europe

Food Grade Export Asia

Commodity Crush

Capturing Value of Change

We will capture this value by building on our advantages:

1. Superior IP system2. Global perceptions of Canada3. Superior products4. Nearness to markets

Opportunity for Companies…

…with a strategic vision of what is possible

…that see the future of food and/or industry

…interested in power of the bean

…that recognize the advantages of Ontario

…that aggressively build on our strengths

Researchers

Farmers

Handlers Manufacturers

Distribution

Consumers/Buyers

Value Added Processing

Interested?

Ontario Soybean Growers

www.soybean.on.ca

Soy 20/20

www.soy2020.ca