© LaSoy GmbH 2005

The Changing Soya World

A short summary presented by Lucas Meyer

CEO LaSoy GmbH Germany

© LaSoy GmbH 2005

Who am I ?

• 1976 to 1999 CEO of Lucas Meyer – The Lecithin people, a world market leader in food ingredients

• 1999 sold the family business to Degussa AG

• 2000 Biovalor AG – development and marketing of healthy ingredients for Functional Foods

• 2004 LaSoy GmbH – starting materials for making the whole range of dairy analogues from soya

© LaSoy GmbH 2005

What will I present ?

• Overview World Soya supply, split gm/non gm, regional distribution, perspectives

• The soya supply chain from harvest to consumption

• The key players• Soya bean meal supply – Current situation and

alternatives• Price implications

© LaSoy GmbH 2005

World Oilseed Production 2004

Source: USDA

216,9

45,645,1

33,2

25,4

Total:380,3 mill metric tons

© LaSoy GmbH 2005

World Soybean Production 2004

Source USDA

85,5

53,0

39,018,0

Total:216,9 mill metric tons

© LaSoy GmbH 2005

World Soybean Exports 2004

Source: USDA

29,9

20,37,6

Total: 62,3 mill metric tons

© LaSoy GmbH 2005

gm/non-gm soyabeans world production in 2004

39%

61%gm soyabeans133 mill metric tons

non-gm soyabeans84 mill metric tons

Total:217 mill metric tons

© LaSoy GmbH 2005

Regional distribution gm vs. non-gm

0

10

20

30

40

50

60

70

80

mill

met

ric

tons

gm-crop

non-gm crop

© LaSoy GmbH 2005

What are the perspectives?

• gm crop in Brazil will increase from current level of 34% to around 50% in 3 years, gradually moving from south to north

• segregation in Brazil will become increasingly difficult

• for the above reasons, gm share in world soya crop will increase from current level of 61% to around 70% in 3 years

© LaSoy GmbH 2005

Brazil – What‘s happening ?

© LaSoy GmbH 2005

perspectives part 2

• sufficient supply of products that can be directly made from non-gm soya beans

• shortage of non-gm products coming from conventional crushing plants– defatted soya meal– refined soyabean oil– lecithins – tocopherols/natural vitamin E– isoflavones

© LaSoy GmbH 2005

From harvest to consumption

- the soya supply chain

FarmerA

Supplier ofgm Seed

(i.e.Monsanto)

ElevatorStorage

Crushing plantTransport by lorry

Transport by lorry,barge or

ocean vessel

Animal FeedManufacturer

Manufacturer ofSoya ProteinConcentrate

or Isolate

Manufacturer ofFood Ingredients

FarmerC

Flakes

Crude Lecithin

Manufacturer ofConsumer Foods

Food grade lecithin

FarmerB

Supplier ofnon-gm Seed(i.e. DuPont)

Soya Isolate

FarmerD

Soya Concentrate

Calf MilkReplacer

CompoundFeed

ElevatorStorage

TankStorage

Soya Oil

Food Retailers

ConsumerProducts

© LaSoy GmbH 2005

Soya – The key playersin a mega industry

Soya crushers and traders

ABC ADM Archer Daniels Midland Inc., Decatur/USABunge Inc., Sao Paulo/BrazilCargill Inc., Minneapolis/USA

the rest See list of soya crushers and traders in 2006 Soya & Oilseed Bluebookfrom Soyatech Inc. Bar Harbor/USAwww.soyatech.com

Seed suppliers

Pioneer (DuPont), Johnston/USAMonsanto, St. Louis/USA

© LaSoy GmbH 2005

Protein Meal Consumption 2004

Source USDA

137,0

24,414,4

9,4

Total: 202,6 mill metric tons

© LaSoy GmbH 2005

World Soybean Meal Exports 2004World Soybean Meal Exports 2004

Source: USDA

© LaSoy GmbH 2005

3 ways of making soya mealfor animal feed

Cleaned dehulled Soyabeans

ExtrusionGrinding

SolventExtraction

Expelling

Full FatSoyabean Meal

Low FatSoyabean Meal

PressedSoyabean Oil

Full FatSoyabean Meal

Toasting

Enzyme InactivatedFull Fat Soyabean

Meal

DefattedSoyabean Flakes

Crude SoyabeanOil

Grinding

Soya Meal

Degumming/Refining

RefinedSoyabean

Oil

SoyabeanLecithin

CrackingGrinding/Flaking

SoyabeanFlakes

= Mainly Animal Feed use

Conventional Alternative Processing

© LaSoy GmbH 2005

Price implications

• An increasing demand for non-gm soya (mainly in Europe) – also for use in animal feed – will lead to new investments in alternative soya processing.

• Availability of non-gm products will slowly increase

• Driving force will not be legislation, but a premium for non-gm products.