global product strategy the future of the seed business matthew mouw sr. marketing manager pioneer...
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Global Product Strategy
The Future of the Seed Business
Matthew MouwSr. Marketing Manager
Pioneer Hi-Bred, International Inc.DuPont Agriculture & Nutrition
Global Product Strategy
Key Economic Factors Shaping Agriculture
• Population growth
• Rising incomes in developing countries
• Increased demand for higher value foods
• Yield growth
• Tighter supply and demand relationships
• North America is more dependent on changes in the global ag sector
• Brazil and China are major sources of uncertainty in world markets for many commodities
• Biotechnology
Global Product Strategy
Population and Income Growth
0 500 1000 1500
Brazil
Argentina
China
India
Japan
EU25
Canada
US
0 10 20 30 40 50
Brazil
Argentina
China
India
Japan
EU25
Canada
US
0 5 10 15
Brazil
Argentina
China
India
Japan
EU25
Canada
US
0.0% 0.5% 1.0% 1.5% 2.0%
Brazil
Argentina
China
India
Japan
EU25
Canada
US
0.0% 2.0% 4.0% 6.0% 8.0% 10.0%
Brazil
Argentina
China
India
Japan
EU25
Canada
US
0.0% 2.0% 4.0% 6.0% 8.0% 10.0%
Brazil
Argentina
China
India
Japan
EU25
Canada
US
PopulationPopulation Total (Million People)
Percent Annual Change
Real GDPReal GDP
Per CapitaPer Capita Total (Thousand 1990 US$)
Percent Annual Change
Real GDPReal GDP
Per CapitaPer Capita Total (Thousand 1990 US$)
Percent Annual Change
PopulationPopulation Total (Million People)
Percent Annual Change
Real GDPReal GDP Total (Trillion 1990 US$)
Percent Annual Change
Real GDPReal GDP Total (Trillion 1990 US$)Percent Annual Change
Source Information: Pioneer – Global Market Economics, PWAF
Global Product Strategy
Per Capita Incomeand Meat Consumption
JapanWith Fish
Income and Meat Consumption
In general, countries with higher levels
of per capita income, have higher levels
of per capita meat consumption
Source Information: USDA & GlobalInsight
Global Product Strategy
Meat Consumption Increases with Income Growth
Million Metric Tons
US
• More meat is consumed in China than any other country
• Total meat consumption in the U.S. is expected to grow slightly faster than population, resulting in a small rise in per capita meat consumption
• As experienced in 2003-3005, animal disease outbreaks cause major disruptions in meat markets
BSE (“Mad Cow”) Avian Influenza
Source: USDA-PS&D
0
10
20
30
40
50
60
70
20
01
20
03
20
05
20
01
20
03
20
05
20
01
20
03
20
05
20
01
20
03
20
05
20
01
20
03
20
05
20
01
20
03
20
05
Beef Pork Chicken
Billion Pounds
Brazil
EU-25 Russia Ukraine China
44
22
0
66
88
110
132
154
Global Product Strategy
US Liquid Transportation Fuels
• 140 billion gallons of gasoline use on US roads
• 37.1 billion gallons of diesel used on highways
• 11.7 gallons of diesel used off-road (farmers use 3.2 billion gallons)
Current Ethanol production: 4.0 billion gallons (7.5 Renewable Fuel Standard by 2012)
Current estimated US biodiesel capacity: 100 million gallons per year
A bag of Pioneer Seed……Produces ~ 1,200 gals of fuel ethanolMakes 12,000 gals of E10 gasoline
Biofuels: Putting the Market in Context
Global Product Strategy
US Bio Energy, Albert CityUS Bio Energy, Albert CityUS Bio Energy, Albert CityUS Bio Energy, Albert CityUS Bio Energy, Albert CityUS Bio Energy, Albert CityUS Bio Energy, Albert CityUS Bio Energy, Albert CityUS Bio Energy, Albert City
Red Trail Energy, RichardtonRed Trail Energy, RichardtonRed Trail Energy, RichardtonRed Trail Energy, RichardtonRed Trail Energy, RichardtonRed Trail Energy, RichardtonRed Trail Energy, RichardtonRed Trail Energy, RichardtonRed Trail Energy, Richardton
Hawkeye Renewables, FairbankHawkeye Renewables, FairbankHawkeye Renewables, FairbankHawkeye Renewables, FairbankHawkeye Renewables, FairbankHawkeye Renewables, FairbankHawkeye Renewables, FairbankHawkeye Renewables, FairbankHawkeye Renewables, Fairbank
Sterling Ethanol, SterlingSterling Ethanol, SterlingSterling Ethanol, SterlingSterling Ethanol, SterlingSterling Ethanol, SterlingSterling Ethanol, SterlingSterling Ethanol, SterlingSterling Ethanol, SterlingSterling Ethanol, Sterling
ADM, MarshallADM, MarshallADM, MarshallADM, MarshallADM, MarshallADM, MarshallADM, MarshallADM, MarshallADM, Marshall
VeraSun, AuroraVeraSun, AuroraVeraSun, AuroraVeraSun, AuroraVeraSun, AuroraVeraSun, AuroraVeraSun, AuroraVeraSun, AuroraVeraSun, Aurora
Heartland Grain, HuronHeartland Grain, HuronHeartland Grain, HuronHeartland Grain, HuronHeartland Grain, HuronHeartland Grain, HuronHeartland Grain, HuronHeartland Grain, HuronHeartland Grain, Huron
Granite Falls Energy, Granite FallsGranite Falls Energy, Granite FallsGranite Falls Energy, Granite FallsGranite Falls Energy, Granite FallsGranite Falls Energy, Granite FallsGranite Falls Energy, Granite FallsGranite Falls Energy, Granite FallsGranite Falls Energy, Granite FallsGranite Falls Energy, Granite Falls
Northern Lights, MilbankNorthern Lights, MilbankNorthern Lights, MilbankNorthern Lights, MilbankNorthern Lights, MilbankNorthern Lights, MilbankNorthern Lights, MilbankNorthern Lights, MilbankNorthern Lights, Milbank
Glacial Lakes, WatertownGlacial Lakes, WatertownGlacial Lakes, WatertownGlacial Lakes, WatertownGlacial Lakes, WatertownGlacial Lakes, WatertownGlacial Lakes, WatertownGlacial Lakes, WatertownGlacial Lakes, Watertown
Ethanol 2000, Bingham LakeEthanol 2000, Bingham LakeEthanol 2000, Bingham LakeEthanol 2000, Bingham LakeEthanol 2000, Bingham LakeEthanol 2000, Bingham LakeEthanol 2000, Bingham LakeEthanol 2000, Bingham LakeEthanol 2000, Bingham Lake
Dakota Ethanol, WentworthDakota Ethanol, WentworthDakota Ethanol, WentworthDakota Ethanol, WentworthDakota Ethanol, WentworthDakota Ethanol, WentworthDakota Ethanol, WentworthDakota Ethanol, WentworthDakota Ethanol, Wentworth
North Country, RosholtNorth Country, RosholtNorth Country, RosholtNorth Country, RosholtNorth Country, RosholtNorth Country, RosholtNorth Country, RosholtNorth Country, RosholtNorth Country, Rosholt
Heartland Corn Products, WinthropHeartland Corn Products, WinthropHeartland Corn Products, WinthropHeartland Corn Products, WinthropHeartland Corn Products, WinthropHeartland Corn Products, WinthropHeartland Corn Products, WinthropHeartland Corn Products, WinthropHeartland Corn Products, Winthrop
Minnesota Energy, Buffalo LakeMinnesota Energy, Buffalo LakeMinnesota Energy, Buffalo LakeMinnesota Energy, Buffalo LakeMinnesota Energy, Buffalo LakeMinnesota Energy, Buffalo LakeMinnesota Energy, Buffalo LakeMinnesota Energy, Buffalo LakeMinnesota Energy, Buffalo Lake
Bushmills, AtwaterBushmills, AtwaterBushmills, AtwaterBushmills, AtwaterBushmills, AtwaterBushmills, AtwaterBushmills, AtwaterBushmills, AtwaterBushmills, Atwater
Chippewa Valley, BensonChippewa Valley, BensonChippewa Valley, BensonChippewa Valley, BensonChippewa Valley, BensonChippewa Valley, BensonChippewa Valley, BensonChippewa Valley, BensonChippewa Valley, Benson
DENCO, MorrisDENCO, MorrisDENCO, MorrisDENCO, MorrisDENCO, MorrisDENCO, MorrisDENCO, MorrisDENCO, MorrisDENCO, MorrisJames Valley, GrotonJames Valley, GrotonJames Valley, GrotonJames Valley, GrotonJames Valley, GrotonJames Valley, GrotonJames Valley, GrotonJames Valley, GrotonJames Valley, Groton
Heartland Grain, AberdeenHeartland Grain, AberdeenHeartland Grain, AberdeenHeartland Grain, AberdeenHeartland Grain, AberdeenHeartland Grain, AberdeenHeartland Grain, AberdeenHeartland Grain, AberdeenHeartland Grain, Aberdeen
Central MN, Little FallsCentral MN, Little FallsCentral MN, Little FallsCentral MN, Little FallsCentral MN, Little FallsCentral MN, Little FallsCentral MN, Little FallsCentral MN, Little FallsCentral MN, Little Falls
Siouxland Energy, Sioux CtrSiouxland Energy, Sioux CtrSiouxland Energy, Sioux CtrSiouxland Energy, Sioux CtrSiouxland Energy, Sioux CtrSiouxland Energy, Sioux CtrSiouxland Energy, Sioux CtrSiouxland Energy, Sioux CtrSiouxland Energy, Sioux Ctr
Broin, ScotlandBroin, ScotlandBroin, ScotlandBroin, ScotlandBroin, ScotlandBroin, ScotlandBroin, ScotlandBroin, ScotlandBroin, Scotland
Otter Creek, AshtonOtter Creek, AshtonOtter Creek, AshtonOtter Creek, AshtonOtter Creek, AshtonOtter Creek, AshtonOtter Creek, AshtonOtter Creek, AshtonOtter Creek, Ashton
Little Sioux Corn, MarcusLittle Sioux Corn, MarcusLittle Sioux Corn, MarcusLittle Sioux Corn, MarcusLittle Sioux Corn, MarcusLittle Sioux Corn, MarcusLittle Sioux Corn, MarcusLittle Sioux Corn, MarcusLittle Sioux Corn, Marcus
Sioux River, HudsonSioux River, HudsonSioux River, HudsonSioux River, HudsonSioux River, HudsonSioux River, HudsonSioux River, HudsonSioux River, HudsonSioux River, Hudson
Great Plains, ChancellorGreat Plains, ChancellorGreat Plains, ChancellorGreat Plains, ChancellorGreat Plains, ChancellorGreat Plains, ChancellorGreat Plains, ChancellorGreat Plains, ChancellorGreat Plains, Chancellor Voyager, EmmetsburgVoyager, EmmetsburgVoyager, EmmetsburgVoyager, EmmetsburgVoyager, EmmetsburgVoyager, EmmetsburgVoyager, EmmetsburgVoyager, EmmetsburgVoyager, Emmetsburg
Quad-County Corn, GalvaQuad-County Corn, GalvaQuad-County Corn, GalvaQuad-County Corn, GalvaQuad-County Corn, GalvaQuad-County Corn, GalvaQuad-County Corn, GalvaQuad-County Corn, GalvaQuad-County Corn, Galva
VeraSun, Fort DodgeVeraSun, Fort DodgeVeraSun, Fort DodgeVeraSun, Fort DodgeVeraSun, Fort DodgeVeraSun, Fort DodgeVeraSun, Fort DodgeVeraSun, Fort DodgeVeraSun, Fort Dodge
Frontier Ethanol, GowrieFrontier Ethanol, GowrieFrontier Ethanol, GowrieFrontier Ethanol, GowrieFrontier Ethanol, GowrieFrontier Ethanol, GowrieFrontier Ethanol, GowrieFrontier Ethanol, GowrieFrontier Ethanol, GowrieHusker Ag, PlainviewHusker Ag, PlainviewHusker Ag, PlainviewHusker Ag, PlainviewHusker Ag, PlainviewHusker Ag, PlainviewHusker Ag, PlainviewHusker Ag, PlainviewHusker Ag, Plainview
Agri-Energy, LuverneAgri-Energy, LuverneAgri-Energy, LuverneAgri-Energy, LuverneAgri-Energy, LuverneAgri-Energy, LuverneAgri-Energy, LuverneAgri-Energy, LuverneAgri-Energy, Luverne
Corn Plus, WinnebagoCorn Plus, WinnebagoCorn Plus, WinnebagoCorn Plus, WinnebagoCorn Plus, WinnebagoCorn Plus, WinnebagoCorn Plus, WinnebagoCorn Plus, WinnebagoCorn Plus, Winnebago
Amaizing Energy, DenisonAmaizing Energy, DenisonAmaizing Energy, DenisonAmaizing Energy, DenisonAmaizing Energy, DenisonAmaizing Energy, DenisonAmaizing Energy, DenisonAmaizing Energy, DenisonAmaizing Energy, Denison
Tall Corn, Coon RapidsTall Corn, Coon RapidsTall Corn, Coon RapidsTall Corn, Coon RapidsTall Corn, Coon RapidsTall Corn, Coon RapidsTall Corn, Coon RapidsTall Corn, Coon RapidsTall Corn, Coon Rapids
Horizon Ethanol, JewellHorizon Ethanol, JewellHorizon Ethanol, JewellHorizon Ethanol, JewellHorizon Ethanol, JewellHorizon Ethanol, JewellHorizon Ethanol, JewellHorizon Ethanol, JewellHorizon Ethanol, Jewell
Midwest Renewable Energy, SutherlandMidwest Renewable Energy, SutherlandMidwest Renewable Energy, SutherlandMidwest Renewable Energy, SutherlandMidwest Renewable Energy, SutherlandMidwest Renewable Energy, SutherlandMidwest Renewable Energy, SutherlandMidwest Renewable Energy, SutherlandMidwest Renewable Energy, Sutherland
Cargill, BlairCargill, BlairCargill, BlairCargill, BlairCargill, BlairCargill, BlairCargill, BlairCargill, BlairCargill, BlairADM, ColumbusADM, ColumbusADM, ColumbusADM, ColumbusADM, ColumbusADM, ColumbusADM, ColumbusADM, ColumbusADM, Columbus
Wyoming Ethanol, TorringtonWyoming Ethanol, TorringtonWyoming Ethanol, TorringtonWyoming Ethanol, TorringtonWyoming Ethanol, TorringtonWyoming Ethanol, TorringtonWyoming Ethanol, TorringtonWyoming Ethanol, TorringtonWyoming Ethanol, Torrington
Lincolnway Energy, NevadaLincolnway Energy, NevadaLincolnway Energy, NevadaLincolnway Energy, NevadaLincolnway Energy, NevadaLincolnway Energy, NevadaLincolnway Energy, NevadaLincolnway Energy, NevadaLincolnway Energy, Nevada
Platte Valley Fuel, Central CityPlatte Valley Fuel, Central CityPlatte Valley Fuel, Central CityPlatte Valley Fuel, Central CityPlatte Valley Fuel, Central CityPlatte Valley Fuel, Central CityPlatte Valley Fuel, Central CityPlatte Valley Fuel, Central CityPlatte Valley Fuel, Central City
Hawkeye Renew, Iowa FallsHawkeye Renew, Iowa FallsHawkeye Renew, Iowa FallsHawkeye Renew, Iowa FallsHawkeye Renew, Iowa FallsHawkeye Renew, Iowa FallsHawkeye Renew, Iowa FallsHawkeye Renew, Iowa FallsHawkeye Renew, Iowa Falls
Cargill, EddyvilleCargill, EddyvilleCargill, EddyvilleCargill, EddyvilleCargill, EddyvilleCargill, EddyvilleCargill, EddyvilleCargill, EddyvilleCargill, Eddyville
Corn LP, GoldfieldCorn LP, GoldfieldCorn LP, GoldfieldCorn LP, GoldfieldCorn LP, GoldfieldCorn LP, GoldfieldCorn LP, GoldfieldCorn LP, GoldfieldCorn LP, Goldfield
E. KS Agri-Energy, GarnettE. KS Agri-Energy, GarnettE. KS Agri-Energy, GarnettE. KS Agri-Energy, GarnettE. KS Agri-Energy, GarnettE. KS Agri-Energy, GarnettE. KS Agri-Energy, GarnettE. KS Agri-Energy, GarnettE. KS Agri-Energy, Garnett
United WI Grain, FrieslandUnited WI Grain, FrieslandUnited WI Grain, FrieslandUnited WI Grain, FrieslandUnited WI Grain, FrieslandUnited WI Grain, FrieslandUnited WI Grain, FrieslandUnited WI Grain, FrieslandUnited WI Grain, Friesland
Golden Triangle, CraigGolden Triangle, CraigGolden Triangle, CraigGolden Triangle, CraigGolden Triangle, CraigGolden Triangle, CraigGolden Triangle, CraigGolden Triangle, CraigGolden Triangle, Craig
Abengoa Bioenergy, YorkAbengoa Bioenergy, YorkAbengoa Bioenergy, YorkAbengoa Bioenergy, YorkAbengoa Bioenergy, YorkAbengoa Bioenergy, YorkAbengoa Bioenergy, YorkAbengoa Bioenergy, YorkAbengoa Bioenergy, York
Badger State, MonroeBadger State, MonroeBadger State, MonroeBadger State, MonroeBadger State, MonroeBadger State, MonroeBadger State, MonroeBadger State, MonroeBadger State, Monroe
Midwest Grain Processors, LakotaMidwest Grain Processors, LakotaMidwest Grain Processors, LakotaMidwest Grain Processors, LakotaMidwest Grain Processors, LakotaMidwest Grain Processors, LakotaMidwest Grain Processors, LakotaMidwest Grain Processors, LakotaMidwest Grain Processors, Lakota
Golden Grain, Mason CityGolden Grain, Mason CityGolden Grain, Mason CityGolden Grain, Mason CityGolden Grain, Mason CityGolden Grain, Mason CityGolden Grain, Mason CityGolden Grain, Mason CityGolden Grain, Mason City
Pine Lake Corn, Steamboat RockPine Lake Corn, Steamboat RockPine Lake Corn, Steamboat RockPine Lake Corn, Steamboat RockPine Lake Corn, Steamboat RockPine Lake Corn, Steamboat RockPine Lake Corn, Steamboat RockPine Lake Corn, Steamboat RockPine Lake Corn, Steamboat Rock IL River Energy, RochelleIL River Energy, RochelleIL River Energy, RochelleIL River Energy, RochelleIL River Energy, RochelleIL River Energy, RochelleIL River Energy, RochelleIL River Energy, RochelleIL River Energy, Rochelle
Iowa, HanlontownIowa, HanlontownIowa, HanlontownIowa, HanlontownIowa, HanlontownIowa, HanlontownIowa, HanlontownIowa, HanlontownIowa, Hanlontown
EXOL, Albert LeaEXOL, Albert LeaEXOL, Albert LeaEXOL, Albert LeaEXOL, Albert LeaEXOL, Albert LeaEXOL, Albert LeaEXOL, Albert LeaEXOL, Albert LeaPro-Corn, PrestonPro-Corn, PrestonPro-Corn, PrestonPro-Corn, PrestonPro-Corn, PrestonPro-Corn, PrestonPro-Corn, PrestonPro-Corn, PrestonPro-Corn, Preston
ADM, Cedar RapidsADM, Cedar RapidsADM, Cedar RapidsADM, Cedar RapidsADM, Cedar RapidsADM, Cedar RapidsADM, Cedar RapidsADM, Cedar RapidsADM, Cedar Rapids
Grain Processing, MuscatineGrain Processing, MuscatineGrain Processing, MuscatineGrain Processing, MuscatineGrain Processing, MuscatineGrain Processing, MuscatineGrain Processing, MuscatineGrain Processing, MuscatineGrain Processing, Muscatine
ADM, ClintonADM, ClintonADM, ClintonADM, ClintonADM, ClintonADM, ClintonADM, ClintonADM, ClintonADM, Clinton
Aventine Renewable, PekinAventine Renewable, PekinAventine Renewable, PekinAventine Renewable, PekinAventine Renewable, PekinAventine Renewable, PekinAventine Renewable, PekinAventine Renewable, PekinAventine Renewable, Pekin
Northeast Missouri Grain, MaconNortheast Missouri Grain, MaconNortheast Missouri Grain, MaconNortheast Missouri Grain, MaconNortheast Missouri Grain, MaconNortheast Missouri Grain, MaconNortheast Missouri Grain, MaconNortheast Missouri Grain, MaconNortheast Missouri Grain, Macon
ADM, DecaturADM, DecaturADM, DecaturADM, DecaturADM, DecaturADM, DecaturADM, DecaturADM, DecaturADM, Decatur
Big River, West BurlingtonBig River, West BurlingtonBig River, West BurlingtonBig River, West BurlingtonBig River, West BurlingtonBig River, West BurlingtonBig River, West BurlingtonBig River, West BurlingtonBig River, West Burlington
MGP, PekinMGP, PekinMGP, PekinMGP, PekinMGP, PekinMGP, PekinMGP, PekinMGP, PekinMGP, Pekin
ADM, PeoriaADM, PeoriaADM, PeoriaADM, PeoriaADM, PeoriaADM, PeoriaADM, PeoriaADM, PeoriaADM, Peoria
Chief, HastingsChief, HastingsChief, HastingsChief, HastingsChief, HastingsChief, HastingsChief, HastingsChief, HastingsChief, Hastings
Michigan Ethanol, CaroMichigan Ethanol, CaroMichigan Ethanol, CaroMichigan Ethanol, CaroMichigan Ethanol, CaroMichigan Ethanol, CaroMichigan Ethanol, CaroMichigan Ethanol, CaroMichigan Ethanol, Caro
Lincolnland, PalestineLincolnland, PalestineLincolnland, PalestineLincolnland, PalestineLincolnland, PalestineLincolnland, PalestineLincolnland, PalestineLincolnland, PalestineLincolnland, Palestine
MGP, AtchisonMGP, AtchisonMGP, AtchisonMGP, AtchisonMGP, AtchisonMGP, AtchisonMGP, AtchisonMGP, AtchisonMGP, Atchison
New Energy, South BendNew Energy, South BendNew Energy, South BendNew Energy, South BendNew Energy, South BendNew Energy, South BendNew Energy, South BendNew Energy, South BendNew Energy, South Bend
Aventine, AuroraAventine, AuroraAventine, AuroraAventine, AuroraAventine, AuroraAventine, AuroraAventine, AuroraAventine, AuroraAventine, Aurora
Al-Corn, ClaremontAl-Corn, ClaremontAl-Corn, ClaremontAl-Corn, ClaremontAl-Corn, ClaremontAl-Corn, ClaremontAl-Corn, ClaremontAl-Corn, ClaremontAl-Corn, Claremont
Northstar, Lake CrystalNorthstar, Lake CrystalNorthstar, Lake CrystalNorthstar, Lake CrystalNorthstar, Lake CrystalNorthstar, Lake CrystalNorthstar, Lake CrystalNorthstar, Lake CrystalNorthstar, Lake Crystal
Central WI Alcohol, PloverCentral WI Alcohol, PloverCentral WI Alcohol, PloverCentral WI Alcohol, PloverCentral WI Alcohol, PloverCentral WI Alcohol, PloverCentral WI Alcohol, PloverCentral WI Alcohol, PloverCentral WI Alcohol, Plover
Western Plains, CampusWestern Plains, CampusWestern Plains, CampusWestern Plains, CampusWestern Plains, CampusWestern Plains, CampusWestern Plains, CampusWestern Plains, CampusWestern Plains, Campus
KAAPA, MindenKAAPA, MindenKAAPA, MindenKAAPA, MindenKAAPA, MindenKAAPA, MindenKAAPA, MindenKAAPA, MindenKAAPA, Minden
Trenton Agri Products, TrentonTrenton Agri Products, TrentonTrenton Agri Products, TrentonTrenton Agri Products, TrentonTrenton Agri Products, TrentonTrenton Agri Products, TrentonTrenton Agri Products, TrentonTrenton Agri Products, TrentonTrenton Agri Products, Trenton
AGP, HastingsAGP, HastingsAGP, HastingsAGP, HastingsAGP, HastingsAGP, HastingsAGP, HastingsAGP, HastingsAGP, Hastings
Utica, OshkoshUtica, OshkoshUtica, OshkoshUtica, OshkoshUtica, OshkoshUtica, OshkoshUtica, OshkoshUtica, OshkoshUtica, Oshkosh
Mid-Missouri Energy, Malta BendMid-Missouri Energy, Malta BendMid-Missouri Energy, Malta BendMid-Missouri Energy, Malta BendMid-Missouri Energy, Malta BendMid-Missouri Energy, Malta BendMid-Missouri Energy, Malta BendMid-Missouri Energy, Malta BendMid-Missouri Energy, Malta Bend GPC, WashingtonGPC, WashingtonGPC, WashingtonGPC, WashingtonGPC, WashingtonGPC, WashingtonGPC, WashingtonGPC, WashingtonGPC, WashingtonUS Energy, RussellUS Energy, RussellUS Energy, RussellUS Energy, RussellUS Energy, RussellUS Energy, RussellUS Energy, RussellUS Energy, RussellUS Energy, Russell
ESE Alcohol, LeotiESE Alcohol, LeotiESE Alcohol, LeotiESE Alcohol, LeotiESE Alcohol, LeotiESE Alcohol, LeotiESE Alcohol, LeotiESE Alcohol, LeotiESE Alcohol, Leoti
Reeve Agri-Energy, Garden CityReeve Agri-Energy, Garden CityReeve Agri-Energy, Garden CityReeve Agri-Energy, Garden CityReeve Agri-Energy, Garden CityReeve Agri-Energy, Garden CityReeve Agri-Energy, Garden CityReeve Agri-Energy, Garden CityReeve Agri-Energy, Garden City
Abengoa Bioenergy, ColwichAbengoa Bioenergy, ColwichAbengoa Bioenergy, ColwichAbengoa Bioenergy, ColwichAbengoa Bioenergy, ColwichAbengoa Bioenergy, ColwichAbengoa Bioenergy, ColwichAbengoa Bioenergy, ColwichAbengoa Bioenergy, Colwich
ACE, StanleyACE, StanleyACE, StanleyACE, StanleyACE, StanleyACE, StanleyACE, StanleyACE, StanleyACE, Stanley
Western WI Renewable, BoycevilleWestern WI Renewable, BoycevilleWestern WI Renewable, BoycevilleWestern WI Renewable, BoycevilleWestern WI Renewable, BoycevilleWestern WI Renewable, BoycevilleWestern WI Renewable, BoycevilleWestern WI Renewable, BoycevilleWestern WI Renewable, Boyceville
Alchem, GraftonAlchem, GraftonAlchem, GraftonAlchem, GraftonAlchem, GraftonAlchem, GraftonAlchem, GraftonAlchem, GraftonAlchem, Grafton
Commonwealth Agri-Energy, HopkinsvilleCommonwealth Agri-Energy, HopkinsvilleCommonwealth Agri-Energy, HopkinsvilleCommonwealth Agri-Energy, HopkinsvilleCommonwealth Agri-Energy, HopkinsvilleCommonwealth Agri-Energy, HopkinsvilleCommonwealth Agri-Energy, HopkinsvilleCommonwealth Agri-Energy, HopkinsvilleCommonwealth Agri-Energy, Hopkinsville
ADM, WalhallaADM, WalhallaADM, WalhallaADM, WalhallaADM, WalhallaADM, WalhallaADM, WalhallaADM, WalhallaADM, Walhalla
Panhandle Energy, DumasPanhandle Energy, DumasPanhandle Energy, DumasPanhandle Energy, DumasPanhandle Energy, DumasPanhandle Energy, DumasPanhandle Energy, DumasPanhandle Energy, DumasPanhandle Energy, Dumas
Tate & Lyle, LoudonTate & Lyle, LoudonTate & Lyle, LoudonTate & Lyle, LoudonTate & Lyle, LoudonTate & Lyle, LoudonTate & Lyle, LoudonTate & Lyle, LoudonTate & Lyle, Loudon
Adkins, LenaAdkins, LenaAdkins, LenaAdkins, LenaAdkins, LenaAdkins, LenaAdkins, LenaAdkins, LenaAdkins, Lena
Ethanol: A major driver in new grain flow patterns
# Bushels (mby) 1,797.78# Acres 11,985,185# Units 4,438,957Current MMGY 3962Potential MMGY 1019
Current % of 05/06 corn production consumed:
Iowa: 23%Nebraska: 21%Minnesota: 18%South Dakota: 40%26% of US corn use by 2015
Global Product Strategy
China and Brazil Changing the Global Soybean Market
0
5
10
15
20
25
30
35
94 95 96 97 98 99 00 01 02 03 04 05
United States Net Exports Brazil Net Exports
China Net Imports Europe Net imports
Million Metric Tons
• Global soybean production increased from 137 MMT to 217 MMT from 1994 to 2005
The U.S., Brazil and Argentina have led the production increases
• Commodity prices have not fallen due to the increase in production, as China has had to import more to meet their needs
• Brazilian surplus has been exported to the world market offsetting the increasing demand in China
• The U.S. (exporter) and the EU-25 (importer) have been relatively stable in the world soybean trade in the last decade
Source Information: Pioneer – Global Market Economics, PWAF
Global Product Strategy
Crop Demand Growth in Last Decade
+12%+12%The growth rate of world population over the last ten years
+25%+25%The growth rate of pork consumption over the last ten years
+29%+29%The growth rate of chicken consumption over the last ten years
+23%+23%The growth rate of world corn consumption over the last decade
+39%+39%The growth rate of world soybean consumption over the last decade
+4%+4%The growth rate of world crop area harvested
Source: Pioneer Global Marketing - MREADS
Global Product Strategy
Growth in Total Grain Production
World Grain Consumption: 1960-2008
• Crop yields need to continue to increase to keep pace with increasing incomes, population and demand for meat
• If yields don’t keep pace, more area will be pulled into production
• Global corn area increased 4.8% since 1980; production increased 45.0% in that same time
• More than 130 million “virtual acres” have been created since 1980
Source Information: USDA & GlobalInsight
Global Product Strategy
Biotechnology Acreage Increasing
4 Major Crops
Global Product Strategy
Ag Biotechnology is Delivering Across the Board
FoodSales
1st Generation Pest and Weed Control Crop Protection
2nd Generation Pest and Weed ControlMultiple Pest/Weed Control Traits
Offer Agronomic TraitsStress Reduction, Yield Increase
Improved Feed Quality
Improved Food Quality and Taste
1994 2004 2014
InputProviders Growers
FoodMfg.
Grain Processors
ImpactCommercial
Global Product Strategy
Positioned to Capture ValueC
on
su
me
rs
2001-2005: Solid top line and bottom line growth
2006-2010: Pipeline delivers expanded market, value and growth
Food
Feed
Bio-fuels
Bio-materials
Value CaptureValue Capture
Pioneer: $2.8B Revenue Solae: $1.1B Revenue
Crop Protection: $2.3B Revenue
Input Providers Growers
Grain Processors
End User Mfg.
Market Insight
Global Product Strategy
IndustrySelect® – Linking Seed to Need
0
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40
50
60
Feed Food Fuel
0
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30
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Feed Food Fuel
2006 IndustrySelect Products by Category
Strong pipeline of transgenic trait solutions for all food, feed and fuel
targets
• Improved Animal Feed Specific feed hybrids for faster weight
gain Targets: increased nutrient density and
availability, oil modification, balanced amino acids and improved digestion
$2 billion opportunity per year• Improved Food
Optimizing taste and health benefits of soybeans
High performance corn grain characteristics to meet/exceed processor specifications
• Increased Ethanol Production Processors realize 2-4% ethanol yield
gain
More than 100 end-use account projects and $100 million in Pioneer sales
Global Product Strategy
Bio-Based Economy Value Chain
Fuels
Chemicals
Materials
BiomassFeedstock
Growth markets
New products
Oil Chemistry
MetabolicEngineering
Global Product Strategy
Aggressive R&D Strategy
++Elite Genetics
Most extensive elite genetics pedigrees
Elite GeneticsMost extensive elite genetics pedigrees
Rich, Balanced Pipeline
Providing game changing solutions for the entire food and energy value chain
Rich, Balanced Pipeline
Providing game changing solutions for the entire food and energy value chain
Technology Foundation for Growth
BiotechnologyProprietary traits and
Genomic tools
BiotechnologyProprietary traits and
Genomic tools
ChemistryComplimentary and high value solutions
ChemistryComplimentary and high value solutions++
Global Product Strategy
Anthracnose Stalk Rot ResistanceFungal Disease Resistance
Drought Tolerance I
Glyphosate Resistance
Corn Rootworm Resistance II
Herculex RWHerculex RW + RR2
Herculex XTRAHerculex XTRA + RR2YGCB + YGRW + RR
YGCB + YGRW + RR2
Nitrogen Use Efficiency
Increased Yield IIncreased Yield II
Increased Ethanol Production IIncreased Ethanol Production II
Improved Feed IImproved Feed II
Seed Production Technology
Asian Soybean Rust ResistanceGlyphosate + SU Resistance IGlyphosate + SU Resistance II
Cyst Nematode ResistanceIncreased Yield IImproved Feed I
High Oleic Acid OilOmega-3 Oil
Drought Tolerance II
Glyphosate + SU Resistance
Drought Tolerance III
Corn Borer Resistance II
Herculex® I
Increased Ethanol Production III
Improved Feed IIIImproved Processing
Nutrium Low Linolenic Oil
Cor
nSo
ybea
ns
High Oleic + High Stearic Acid Oil
Phase 1Proof of Concept
Phase 2Early
Development
Phase 3Advanced
Development
Phase 4Pre-Launch
Discovery Gene/Trait
IdentificationLaunch
FarmerProcessorConsumer Enabling Technology
Target Markets
2005 Rich Crop Genetics Pipeline
Global Product Strategy
Phase 1Proof of Concept
Phase 2Early
Development
Phase 3Advanced
Development
Phase 4Pre-Launch
Discovery Gene/Trait
IdentificationLaunch
FarmerProcessorConsumer Enabling Technology
Target Markets
Cor
nSo
ybea
ns
Anthracnose Stalk Rot ResistanceFungal Disease Resistance
Drought Tolerance
Corn Rootworm Resistance II
Nitrogen Use EfficiencyIncreased Yield IIncreased Yield II
Increased Ethanol Production II
Improved Feed II
Seed Production Technology
Asian Soybean Rust ResistanceGlyphosate + SU Resistance IGlyphosate + SU Resistance II
Cyst Nematode ResistanceIncreased Yield I
Improved Feed I
High Oleic Acid OilOmega-3 Oil
Glyphosate + SU Resistance
Corn Borer Resistance II
Increased Ethanol Production III
Improved Feed III
Corn Rootworm Resistance III
Corn Borer Resistance III
Insect Resistance
Increased Yield II
Improved Feed II
Glyphosate + SU Resistant Cotton
Insect Resistant RiceNematode Resistant Cotton
Glyphosate Resistant Cotton
Insect Resistant Cotton
Glyphosate Resistant CanolaOth
er C
rops
High Oleic + High Stearic Acid Oil
2006 Rich Crop Genetics Pipeline
Global Product Strategy