Global Grain South AmericaNON-GMO soy production in Argentina of high value specialty

September 2014

Let´́́́s talk about NON-GMO soy production

Who are we and what we do?

we develop we produce we categorize we export

Specialty crop grains, supported on GDM seeds soybean genetics R & D potential

How we work?

GDM Seeds is a group of companies fully dedicated to improve crop productivity

The genetic development of seeds is the main focus of GDM Seeds, with special dedication to soybean.

The product of GDM seeds is genetic, to afford better and higher- yield seeds varieties

GDM in numbers

Genetic Marketof soybean seeds in south America

36% GDM Seeds

GDM facts

810employees

Revenues of usd

240 MM.

The largest R&D program in South America:

159 research locations.

321 development locations.

1.3 MM Research plots:

Argentina, Brazil, USA, Bolivia, Uruguay, Paraguay, South Africa, Italy, Ukraine, Russia.

Analyzing the marketNew trends in the market for specialty crops

Growing demand for natural, healthy and NON-GMO products.

Projected global salesNON-GMO Food and Beverages

Source: Packaged Facts, 2013.

Growing demand for natural, healthy and NON-GMO products

USA in 2012, was 40% of the global NON-GMO food and beverages market.Food labelling controversy: nearly 30 states with pending government projects.

Whole Foods MarketStore expansion plan in USA

Source: Bloomberg, 2011.

Price premiums for US farmers

Source: Soybean in the European Union. Y. Bertheau, 2011.

Traditional products shift to NON-GMO

Source: Soy in the EU. Y.Bertheau. 2011.

Growing demand for natural, healthy and NON-GMO products

EUROPE. NON-GMO IP soybean estimated demand in Europe, 2011 in MM MTons.

Food certificates.GM threshold pressure: 0.9% to 0.1%.Animal labelling.Aquaculture replace fishmeal in feed.

Main buyersGermanyUKFranceAustriaSweden

6 MM Tons

37.2 MM Tons

86%

14%

Growing demand for natural, healthy and NON-GMO products

Asia, specialy China and India, will be fertile territory for NON-GMO sales as their emerging middle classes look for healthier eating options

NON-GMO Soybean Premiums are growing, surpassing usd200/MT in 2012. “Food grade”.Japan and Korea: 1.5 to 3 MM MT.

Source: Tokio Grain Exchange.

Japanese GM Soybean PriceJapanese NON-GM Soybean Price

Source: Market for non-gmo IP crops.

European Comission, 2012 .

GMO vs NON-GMO Soybean market in Japan

New trends in the market for NON-GMO soybean supply

Main exporter with challenges in the logistic chain:• 5,8 MM tons exported during 2013• Challenges in the logistic chain to continue growing

From exporters to importers?• Consumer changes.• Limited access to markets due to quality issues• Growing GM soybean importer.• Local development of GM seeds will reduce future area of non-gmo crops.

NON-GMO IP Soybeans production in Brazil

Brazil China and India

An opportunity to KumagroSo, here we are!

Argentina, Brazil and bordering countries have the necessary conditions to increase production volume and become NON-GMO soybean suppliers at the lowest cost, with

a distinct quality and preserved identity

Thus, we can become important playersin provision of NON-GMO IP soybean

to the marketplace