Soy 2020 Our Vision. Our Destination.

The U.S. soybean industry will be the global marketplace leader

Illinois Soybean Association Soy 2020 Roundtable

April 5, 2011

Thank You ! Soy 2020 Summary   Inclusive visionary process to ensure successful future for U.S. soybean industry   Brings all parts of U.S. soybean value chain together to plot strategy: -  Farmers -  Processors -  Academia -  Representatives of food, feed, fuel and other

relevant industries   Led by steering committee with representatives from entire soy value chain

Soy 2020 Objectives

  Provide overarching vision and strategies for all segments of U.S. soybean industry

  Ensure successful future within global marketplace

  Engage all soy stakeholder groups

Thank You ! Soy 2020 Collaboration

 American Farm Bureau Federation

  American Soybean Association

  Archer Daniels Midland Company

  CHS Inc.

  CoBank, ACB

  Gordon Denny, LLC

  Illinois Soybean Association

  John Deere

  Kellogg Company

  Latham Farms

  Monsanto

  Owensboro Grain

  Pioneer

  United Soybean Board

  University of Illinois

(organizations represented on the Soy 2020 steering committee)

Soy 2020 Process   Soy 2020 Vision process doesn’t predict the

future. It does: -  Explore challenges and opportunities -  Use “scenario planning” approach -  Track market indicators and interview

industry experts bi-annually to measure current and future industry outlooks

-  Use research results to provide guidance for each segment of the industry

-  Incorporate relevant Soy 2020 strategies into unique organizational planning across the value chain

  Soy 2020 is on a path to implement strategies across the industry to benefit all

Scenario Planning Overview   Soy 2020 utilizes a Long Range Planning

Methodology called Scenario Planning   Scenario Planning has several benefits, it helps

organizations: –  Think out-of-the-box –  Take a long-term view of the industry/market to guide critical

decisions –  Isolate the most critical and influential factors influencing

success –  Provide structure to consider and quantify the impact of these

factors –  Create robust strategies for success in an uncertain market –  Establish a process to adjust strategies as needed

  As a result of the Scenario Planning Process, the soy industry gains:

–  An effective approach to Long Range Planning –  Clarity regarding specific critical market place drivers –  Focus on critical market factors (leading indicators) to track

moving forward –  An ongoing process to support the proactive adjustment of

business strategies

Scenario Planning Process

Identify Focal

Business Decision

Determine Driving Forces

Identify Certainties &

Critical Uncertainties

Select Scenario Logics

Develop Scenarios

Implications & Strategy

Development

Select & Track

Leading Indicators

Implications & Strategy Adjustment

SOY 2020 SCENARIO PLANNING PROCESS

Thank You ! Scenario Planning Soy 2020 steering committee identified four potential industry scenarios based on technology adoption for soy versus other crops.

II I

III IV Off-Shore Migration Forward to the Past

Full Speed Ahead Shared Success Soybean Innovations

Other Crop Innovations

No Innovation Advantage for Other Crops

Other Crop Innovation Advantage

Soybean Innovation Advantage

Soybean Star

No Innovation Advantage

for Soybeans

Potential Scenarios   Full Speed Ahead -  Sustainable soy technology innovation

advantages -  Technology does not advance for

competing crops   Shared Success -  Sustainable technologies exist for soy and

other crops -  Numerous benefits challenge

competitiveness   Off-Shore Migration -  No soy-specific technology innovation

advantages -  Other crops have sustainable advantages. -  Soy struggles to compete

  Forward to the Past -  No sustainable technology or innovations

for soy or other crops -  Constant state

Thank You ! Soy 2020 Indicators   Soy 2020 monitors leading market indicators

  The indicators signal to stakeholders which scenario is beginning to play out in the marketplace

  The industry uses Soy 2020 as a planning tool and catalyst to develop and implement specific action plans

  The industry can get a jump start on the competition

Soy 2020 Indicator Tracking

  Sustainable technologies exist for soy and other crops, with numerous benefits challenging competitiveness: -  Crops enhanced by technology innovations -  Integrated distribution channel -  Largest share of research funding aimed at

improving logistics and infrastructure -  Commercialization of higher energy corn and

DDGs with higher protein content (competing with soybean meal as feed sources)

-  Increased commodity prices -  Expansion of ethanol and biodiesel production

boosted rural economy -  Consumers and producers have multiple

appealing choices

Four rounds of indicator tracking, conducted every six months since March 2008, show a Shared Success scenario:

Soy 2020 Indicator Tracking Results of Rounds 1-6

SOYBEAN INDUSTRY INDEX

R1 1-Year

R1 5-Year

R2 1-Year

R2 5-Year

R3 1-Year

R3 5-Year

R4 1-Year

R4 5-Year

R5 1-Year

R5 5-Year

R6 1-Year

R6 5-Year

I. Full Speed Ahead II. Shared Success

IV. Forward to the Past III. Off Shore Migration

OTHER CROPS INNOVATION

SOY

BE

AN

S IN

NO

VA

TIO

N

Less

More

Less More

IV. Forward to the Past III. Off Shore Migration

OTHER CROPS INNOVATION

SOY

BE

AN

S IN

NO

VA

TIO

N

Less

More

Less More

Thank You ! Soy 2020 Strategies Strategies developed on two levels:   Common strategies:

-  Implemented for all potential strategies -  Soybean value chain must:

  Anticipate   Collaborate   Act

  Scenario-specific strategies: -  Address unique opportunities and

challenges within each scenario -  Leadership and support roles vary in

the value chain for each scenario

Soy 2020 in Action   Soy 2020 scenarios and strategies: -  Encourage better thinking and learning -  Enable industry decision makers to assess

and reassess their strategic options to act with confidence

-  Require collaborative effort from the entire value chain

 To implement Soy 2020, the industry: -  Launched rollout and initial communication

of Soy 2020 to the soybean industry -  Tracked market indicators -  Shared updates and collaborated around

the indicator tracking results - Conducted ongoing communication and

education for the soybean industry

  Soy 2020 steering committee exploring a collaborative, industry-wide effort to increase protein levels by the year 2020 -  Research shows quality of U.S. soybeans as measured

by the combination of oil and protein content has declined -  Decline decreased value created by U.S. soy industry -  Further decline could lead to potential loss of U.S.

soybeans’ competitive advantage   Soy 2020 steering committee engaging with

processing sector to collect data to understand trends and issues related to soybean protein levels -  Also meeting with industry stakeholders to discuss

challenges, define protein-level trends, quantify value of increasing protein levels, identify needed actions by each industry segment

Soy 2020 in Action

States’ Roles in Soy 2020   State participation is vital to the success of the Soy

2020 initiative   States should develop a strategy that will:

–  Keep the soy industry moving forward –  Maintain a thriving industry at the local (state) level –  Map a plan for the future

  Identify unique strengths, weaknesses, opportunities and threats and competitive advantage (SWOT analysis)

  Leverage those strengths to position state for a thriving future in feeding the world's need for soy products

Illinois Soybean Association Participation

  Enhance Illinois’ position as a leader in soybean production and soybean product technology

  Foster a thriving environment for soybean business development in Illinois

  Collaborate with key stakeholders

  Identify and develop new opportunities for growth

  Be proactive and prepared for new innovations

By combining the data Soy 2020 provides as a planning tool, with defined action-planning by industry leaders, Soy 2020 is on a path to implement strategies across the industry to benefit all.

Soy 2020 is committed to the success and viability of all sectors of the soybean industry.

Looking Ahead

Follow Soy 2020 Soy 2020 leadership will continue to:

  Track market indicators   Identify trends and the scenario

emerging in the industry   Ensure maximum profitability of the

entire value chain

For updates, subscribe to the Soy 2020 e-newsletter by e-mailing info@soy2020vision.com

Thank You !