Louis Dreyfus Canada Ltd.

World Grain Flows – The Evolution of Competition

02

December 3, 2010

World Dry Bulk

03

December 3, 2010

Combined Lake & St. Lawrence Exports – U.S. & Canada

>Total traffic has decreased from a high of 15.2 million tons in 1994/95 to 9.5 million tons in 2008/09

04

December 3, 2010

World Grain Flows – the Evolution of Competition

> Global Oilseeds Market> Soybean and Canola

l Production & Consumption

l Importers & Exporters

l Meeting Chinese Demand

– Canada’s Rank

> Global Grain Market>Wheat

l Shifting Global Market

– Former Soviet Union

>Corn> Canada

> Seeded Acreage and Production> Exports

l Global Comparisons

> Conclusion

05

December 3, 2010

Soybean and CanolaProduction and Consumption

>Led by soybeans, oilseed consumption has increased to over 300 million tons>Increase of 140% since 1990

0

50

100

150

200

250

300

350

1990

/1991

1991

/1992

1992

/1993

1993

/1994

1994

/1995

1995

/1996

1996

/1997

1997

/1998

1998

/1999

1999

/2000

2000

/2001

2001

/2002

2002

/2003

2003

/2004

2004

/2005

2005

/2006

2006

/2007

2007

/2008

2008

/2009

2009

/2010

2010

/2011

Mill

ion

Tons

Oilseed Production Oilseed Consumption

06

December 3, 2010

World Soybeans Production

>World production of soybeans has increased nearly 150% in the last 20 years

>Growth led by the U.S., Argentina, and Brazil

0102030405060708090

100

1990

/1991

1992

/1993

1994

/1995

1996

/1997

1998

/1999

2000

/2001

2002

/2003

2004

/2005

2006

/2007

2008

/2009

2010

/2011

Mill

ion

Tons Argentina

BrazilCanadaChinaUnited States

07

December 3, 2010

China in the News

08

December 3, 2010

World SoybeansConsumption

>China is now the leading consumer of soybeans (≈25% of world)

>Growing livestock and poultry sectors contribute to consumption increases

0

50

100

150

200

250

1990

/1991

1991

/1992

1992

/1993

1993

/1994

1994

/1995

1995

/1996

1996

/1997

1997

/1998

1998

/1999

1999

/2000

2000

/2001

2001

/2002

2002

/2003

2003

/2004

2004

/2005

2005

/2006

2006

/2007

2007

/2008

2008

/2009

2009

/2010

2010

/2011

Mill

ion

Tons

United States

EU-15/27

China

Brazil

Argentina

09

December 3, 2010

World SoybeansConsumption as a Percent of Production

>China currently consumes over four times more than they produce

0%

50%

100%

150%

200%

250%

300%

350%

400%

450%

500%

1990

/1991

1991

/1992

1992

/1993

1993

/1994

1994

/1995

1995

/1996

1996

/1997

1997

/1998

1998

/1999

1999

/2000

2000

/2001

2001

/2002

2002

/2003

2003

/2004

2004

/2005

2005

/2006

2006

/2007

2007

/2008

2008

/2009

2009

/2010

2010

/2011

ArgentinaBrazilChinaCanadaUnited States

010

December 3, 2010

World SoybeansLeading Importers

>China is the world’s largest importer of soybeans>Responsible for over 55%

of world imports

0

10

20

30

40

50

60

70

1990

/1991

1991

/1992

1992

/1993

1993

/1994

1994

/1995

1995

/1996

1996

/1997

1997

/1998

1998

/1999

1999

/2000

2000

/2001

2001

/2002

2002

/2003

2003

/2004

2004

/2005

2005

/2006

2006

/2007

2007

/2008

2008

/2009

2009

/2010

Mill

ion

Tons Japan

EU-15/27

China

011

December 3, 2010

Chinese Domestic ConsumptionOutlook

肉,奶制品和家禽产量的“非弹性需求增长” 将从2009年的148亿吨增长到2020年的超过250万公吨。

Liu Xiaoyu, general manager Cofco feed division, China’s largest grain trader

012

December 3, 2010

Chinese Domestic ConsumptionOutlook

>China may double its output of industrial animal feed

>Output will be more than 250 million metric tons by 2020, growing from 148 million tons last year, on “inelastic demand growth” for meat dairy and poultry

Liu Xiaoyu, general manager Cofco feed division, China’s largest grain trader

From bloomberg.com: October 6, 2011

013

December 3, 2010

World SoybeansLeading Exporters

>Argentina, Brazil, and the U.S. make up about 90% of world soybean exports

0

510

1520

2530

3540

45

1990

/1991

1991

/1992

1992

/1993

1993

/1994

1994

/1995

1995

/1996

1996

/1997

1997

/1998

1998

/1999

1999

/2000

2000

/2001

2001

/2002

2002

/2003

2003

/2004

2004

/2005

2005

/2006

2006

/2007

2007

/2008

2008

/2009

2009

/2010

Mill

ion

Tons

Argentina Brazil United States

014

December 3, 2010

Canadian Soybean Exports

>Canadian soybean exports have continued to rise>Exports in 2010 make up around 60% of production

0

500

1,000

1,500

2,000

2,500

1990

/1991

1991

/1992

1992

/1993

1993

/1994

1994

/1995

1995

/1996

1996

/1997

1997

/1998

1998

/1999

1999

/2000

2000

/2001

2001

/2002

2002

/2003

2003

/2004

2004

/2005

2005

/2006

2006

/2007

2007

/2008

2008

/2009

2009

/2010

Thou

sand

Ton

s

015

December 3, 2010

Canadian SoybeansExport Destinations

>Canadian soybean destinations have remained fairly consistent>Until 2008/09, have not had significant exports to China

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1999

/2000

2000

/2001

2001

/2002

2002

/2003

2003

/2004

2004

/2005

2005

/2006

2006

/2007

2007

/2008

2008

/2009

Tons

to Netherlandsto Chinato Japanto United States

016

December 3, 2010

Soybean Exports to China

>Canada has not overwhelmingly increased its percentage of exports to China>2008/09 – Brazil and the US sent over 50% of their exports to China>2008/09 – Argentina sent roughly 90% of their exports to China

•2008/2009 crop year –Canada made up only .6% of all Chinese Imports

017

December 3, 2010

> Soybean consumption has increased dramatically>Led by China

>US, Argentina, and Brazil have answered with increased production

>Canada has maintained modest yet steady production growth>Consistently increasing exports

Steady export destinations

018

December 3, 2010

World Wheat MarketProduction and Consumption

0

100

200

300

400

500

600

700

800

1990

/1991

1991

/1992

1992

/1993

1993

/1994

1994

/1995

1995

/1996

1996

/1997

1997

/1998

1998

/1999

1999

/2000

2000

/2001

2001

/2002

2002

/2003

2003

/2004

2004

/2005

2005

/2006

2006

/2007

2007

/2008

2008

/2009

2009

/2010

2010

/2011

Mill

ion

Tons

Production Consumption

019

December 3, 2010

World Wheat Russia, Kazakhstan, Ukraine Production

>Wheat Production in the Former Soviet Union has been increasing since 1995>Drought in the 2010/2011 crop year has limited production

Russia, Kazakhstan, Ukraine Production

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

110,000

1995

/1996

1996

/1997

1997

/1998

1998

/1999

1999

/2000

2000

/2001

2001

/2002

2002

/2003

2003

/2004

2004

/2005

2005

/2006

2006

/2007

2007

/2008

2008

/2009

2009

/2010

Thou

sand

Ton

s

020

December 3, 2010

World WheatRussia, Kazakhstan, Ukraine Exports

>Russian wheat exports have increased from 1.2mmt in 1990 to 18.6mmt in 2010

>Ukraine wheat exports have increased from 2mmt in 1990 to 9.3mmt in 2010

Russia, Kazakhstan, Ukraine Exports

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

1990

/1991

1991

/1992

1992

/1993

1993

/1994

1994

/1995

1995

/1996

1996

/1997

1997

/1998

1998

/1999

1999

/2000

2000

/2001

2001

/2002

2002

/2003

2003

/2004

2004

/2005

2005

/2006

2006

/2007

2007

/2008

2008

/2009

2009

/2010

Thou

sand

Ton

s

021

December 3, 2010

Percentage of World Wheat Exports

>2000/01 – Former Soviet Union accounted for 5% of world wheat exports>2009/10 – FSU accounted for 28% of world wheat exports

5% 13%

24%

7%14% 18% 20% 19%

26% 28%13%

46% 41%

31%

44%40% 37%

40% 44%33% 33%

42%

0%

20%

40%

60%

80%

100%

2000

/2001

2001

/2002

2002

/2003

2003

/2004

2004

/2005

2005

/2006

2006

/2007

2007

/2008

2008

/2009

2009

/2010

2010

/2011

OtherAustraliaNorth AmericaFormer Soviet UnionEuropean Union

022

December 3, 2010

Wheat ExportsChanges 1991-2010

023

December 3, 2010

Wheat ConsumptionChanges 1991-2011

024

December 3, 2010

Corn Production and Consumption

>Corn consumption has increased to over 800 million tons

0

100

200

300

400

500

600

700

800

900

1990

/1991

1991

/1992

1992

/1993

1993

/1994

1994

/1995

1995

/1996

1996

/1997

1997

/1998

1998

/1999

1999

/2000

2000

/2001

2001

/2002

2002

/2003

2003

/2004

2004

/2005

2005

/2006

2006

/2007

2007

/2008

2008

/2009

2009

/2010

2010

/2011

Mill

ion

Tons

ProductionConsumpion

025

December 3, 2010

Corn Exports

>1990/91 – 58.4 million tons exports

>US – 44 million >S. America – 4 million>FSU – 800 thousand >Canada – 140 thousand

>2010/11 – 93.4 million tons exports

>US – 51.4 million >S. America – 26 million>FSU – 5.6 million>Canada – 300 thousand

026

December 3, 2010

Grains Summary

>Gradual increase in wheat consumption

>Consumption shift>Significant increases in Asia, EU, and Africa

>Emerging exporters>FSU has become new low cost exporter>Until FSU drought 2010/11, smaller North American market share

>Corn>Increased demand>More FSU and S. America exports

027

December 3, 2010

Canadian Land Usage

>Even with increases in global food consumption, Canadian cultivated area has declined below 100 million acres

>Wheat, Barley, Oats, Corn, Peas, Canola, and Soybeans account for roughly 60 million acres

Total Seeded Area

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

110.0

90/91

91/92

92/93

93/94

94/95

95/96

96/97

97/98

98/99

99/00

00/01

01/02

02/03

03/04

04/05

05/06

06/07

07/08

08/09

09/10

10/11

Mill

ion

Acre

s

Major Crops Minor Crops Summerfallow

028

December 3, 2010

Canadian Seeded Acreage

0%

20%

40%

60%

80%

100%

90/91

91/92

92/93

93/94

94/95

95/96

96/97

97/98

98/99

99/00

00/01

01/02

02/03

03/04

04/05

05/06

06/07

07/08

08/09

09/10

10/11

Perc

enta

ge B

reak

dow

n

Wheat Ex-Durum Oats Barley Canola

>Acres have strayed away from wheat and towards canola

029

December 3, 2010

Canadian Production Trends

0%

20%

40%

60%

80%

100%

91/92

92/93

93/94

94/95

95/96

96/97

97/98

98/99

99/00

00/01

01/02

02/03

03/04

04/05

05/06

06/07

07/08

08/09

09/10

10/11

Perc

enta

ge B

reak

dow

n

Wheat Ex-Durum Durum Barley Canola Soybeans

030

December 3, 2010

Wheat Freight, Elevation, & Stevedoring

031

December 3, 2010

Canadian Export Market

>Changes since 1990>Vancouver: +2.5 million (21% increase)>Prince Rupert: +11 thousand (unchanged)>St. Lawrence: -3.05 million (26% decrease)

Canadian Exports by Port

0

5

10

15

20

25

30

35

40

1990

-91

1991

-92

1992

-93

1993

-94

1994

-95

1995

-96

1996

-97

1997

-98

1998

-99

1999

-00

2000

-01

2001

-02

2002

-03

2003

-04

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

Mill

ion

Tons St. Lawrence

VancouverPrince Rupert

032

December 3, 2010

Canadian ExportsChanges by Destination

033

December 3, 2010

Canadian Export Market

>Overall Canadian Lakes & St. Lawrence Exports have declined to just over 8 million tons>Oilseed exports now make up close to 2 million tons

Lakes and St. Lawrence Exports

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1990

-9119

91-92

1992

-9319

93-94

1994

-9519

95-96

1996

-9719

97-98

1998

-9919

99-00

2000

-0120

01-02

2002

-0320

03-04

2004

-0520

05-06

2006

-0720

07-08

2008

-09

Thou

sand

Ton

s

GrainsOilseeds

034

December 3, 2010

US Export Market

Lake Exports

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

90/91

91/92

92/93

93/94

94/95

95/96

96/97

97/98

98/99

99/00

00/01

01/02

02/03

03/04

04/05

05/06

06/07

07/08

08/09

Thou

sand

Ton

s

SoybeansCornWheat

035

December 3, 2010

Combined Lake & St. Lawrence Exports – U.S. & Canada

>Total traffic has decreased from a high of 15.2 million tons in 1994/95 to 9.5 million tons in 2008/09

036

December 3, 2010

US Export Market

Pacific Exports

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

90/91

91/92

92/93

93/94

94/95

95/96

96/97

97/98

98/99

99/00

00/01

01/02

02/03

03/04

04/05

05/06

06/07

07/08

08/09

Thou

sand

Ton

s

SoybeansCornWheat

>Expecting 2010/11 Pacific Exports of 33.5 million, near high of 2007/08!!

037

December 3, 2010

US Export Market

Exports to Mexico and Canada (Interior)

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

90/91

91/92

92/93

93/94

94/95

95/96

96/97

97/98

98/99

99/00

00/01

01/02

02/03

03/04

04/05

05/06

06/07

07/08

08/09

Thou

sand

Ton

s

SoybeansCornWheat

>Expected 2010/11 exports are projected near 11.2 million

038

December 3, 2010

US Export Market

>Expecting 2010/11 Gulf Exports of 82 million!!

Gulf Exports

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90/91

91/92

92/93

93/94

94/95

95/96

96/97

97/98

98/99

99/00

00/01

01/02

02/03

03/04

04/05

05/06

06/07

07/08

08/09

Thou

sand

Ton

s

SoybeansCornWheat

039

December 3, 2010

US Exports

040

December 3, 2010

>Shift in Canadian seeded acreage away from grains and towards oilseeds>Increased Canola production

>Exports met through Pacific>Fewer exports out of St. Lawrence

More oilseed exports

>Strong US Export Growth>Decrease in Eastern Port Traffic

041

December 3, 2010

Conclusion

>Shifting domestic consumption being met by new export markets>Increasing Asian and African consumption>Increasing South American and FSU exports

>New Canadian agricultural objectives>Gradual transition towards oilseeds& increasing domestic demand

>Thriving Pacific export market>More exports to Asian markets led by expanding Chinese demand>Increase in soybean traffic

>Stagnant Eastern and Great Lakes exports>Constrained US capacity from US Gulf and Pacific Northwest>St. Lawrence Seaway acts as residual supplier of capacity

Louis Dreyfus Canada Ltd.World Dry BulkCombined Lake & St. Lawrence Exports – U.S. & CanadaWorld Grain Flows – the Evolution of CompetitionSoybean and Canola�Production and ConsumptionWorld Soybeans �ProductionChina in the NewsWorld Soybeans�ConsumptionWorld Soybeans�Consumption as a Percent of ProductionWorld Soybeans�Leading ImportersChinese Domestic Consumption�OutlookChinese Domestic Consumption�OutlookWorld Soybeans�Leading ExportersCanadian Soybean ExportsCanadian Soybeans�Export DestinationsSoybean Exports to China� Slide Number 17World Wheat Market�Production and ConsumptionWorld Wheat �Russia, Kazakhstan, Ukraine ProductionWorld Wheat�Russia, Kazakhstan, Ukraine ExportsPercentage of World Wheat ExportsWheat Exports�Changes 1991-2010Wheat Consumption�Changes 1991-2011Corn �Production and ConsumptionCorn ExportsGrains SummaryCanadian Land UsageCanadian Seeded AcreageCanadian Production Trends Wheat Freight, Elevation, & StevedoringCanadian Export MarketCanadian Exports�Changes by DestinationCanadian Export MarketUS Export MarketCombined Lake & St. Lawrence Exports – U.S. & CanadaUS Export MarketUS Export MarketUS Export MarketUS ExportsSlide Number 40Conclusion