Stock Feed Manufactures Meeting November 28 th 2018

1. NIR Calibration Upgrades Stock Feed Manufactures Meeting November 28th 2018

2. AusScan Calibrations Understanding NIR Unique Calibrations 2018 – More robust updates Global QA System $

3. Commercialisation - 2018 Piglet Buddy

4. Black Box Technology Understanding NIR

5. Understanding NIR Animal Dog Alsatian German Shepherd Deutscher Schäferhund Data Processor Image Detector Answer

6. Understanding NIR Animal Dog Alsatian German Shepherd Deutscher Schäferhund Data Processor Image Detector Answer

7. What makes a good calibration

8. Hardware

9. All scans are not created equal with NIR Hardware Hardware

10. Hardware NIR Spectra contain repetitive information Nitrogen / Protein Water

11. AusScan Calibrations Understanding NIR Unique Calibrations 2018 – More robust updates Global QA System

12. Unique Calibrations ENERGY – Cereals LYSINE – Reactive Lysine

13. Unique Calibrations ENERGY Cereals • Pig Digestible Energy (DE) • Poultry ApprarentMetabolisable Energy (AME) • Ruminant Metaboliseable Energy (ME)

14. Unique Calibrations • Background: • Developed from late 1990’s to present. • Different experimental sites • Different genetics in most locations • Different seasons • Complex experimental design • Pig Digestible Energy (DE) Faecal Energy (FE) DE = [(GE in feed – GE in Faeces ) / Feed Intake] Gross Energy (GE) Digestible Energy (DE)

15. Unique Calibrations • Pig Digestible Energy (DE) Test Grain Wet Chemistry NIR Calibration Development

16. Unique NIR Calibrations • Pig Digestible Energy (DE) 95% confidence limit Within 0.26 MJ/kg Now 0.22 MJ/kg • Calibration Updates • 2018; 2021

17. AusScan Calibrations Understanding NIR Unique Calibrations 2018 – More robust updates Global QA System

18. 2018 – More Robust Updates • Cereal • Pig Ileal and Faecal DE • Poultry AME, Feed Intake • Reactive Lysine • Soybean

19. 2018 – More Robust Updates Cereal ENERGY Value of the calibration: RPD 2.0 - 2.5 predictions approx. quantitative 2.5 - 3.0 predictions are good 3.0 predictions excellent

20. 2018 – More Robust Updates Cereal ENERGY GRAINS

21. 2018 – More Robust Updates Cereal ENERGY • Accuracy and robustness improvements • Faecal DE from GOOD to EXCELLENT • Additional maize samples - overseas • Broiler AME accurate for samples outside Australia GOOD OUTCOMES

22. 2018 – More Robust Updates Soybean LYSINE • Calibrations are good to excellent • No Chinese processed samples • Test Australian samples for accuracy of predicted value • Collected: • 24 Additional samples from China • 16 samples from Australia Soybean Samples

23. 2018 – More Robust Updates Soybean LYSINE GOOD OUTCOMES • Reactive Lysine calibration improvement in Robustness 22.7% • Total Lysine from Good to Excellent • Increased confidence in China customers

24. AusScan Calibrations Understanding NIR Unique Calibrations 2018 – More robust updates Global QA System

25. Global QA System Import known samples: • NIR values / Wet Chemistry • Wheat / Soybean / Canola • Uniformity

26. Global QA System Your Lab Vs Other Labs Monthly Reports

27. Global QA System Your Lab over time - repeatability Monthly Reports

28. Global QA System Australian Labs – ENERGY

29. Growth in 2018 Scan Numbers Global Online 23427

30. Growth in 2018 Scan Numbers Australia Sublicensors 36581

31. Thank you

32. Understanding NIRVibrations of a (-CH2-) Group The atoms in a CH2 group commonly found in organic compound can vibrate in six different ways

33. Unique NIR Calibrations LYSINE Proteins • Reactive Lysine – a measure of heat damage • SID Lysine

34. Unique NIR Calibrations Processing of soybean and canola meals • Heat treatment – Lysine reacts with other compounds • Maillard reaction Lysine + reducing sugars → Maillard products • Maillard products – not nutritionally available REACTIVE LYSINE - Lysine that has not been destroyed by heat processing

35. Unique NIR Calibrations REACTIVE LYSINE - Lysine that has not been destroyed by heat processing Kim and Mullan (2012)

36. Unique NIR Calibrations The Reactive Lysine calibration identifies lysine molecules with a free epsilon amino group, which implies its availability for protein synthesis. A measure of heat damage REACTIVE LYSINE - Calibration

37. Unique NIR Calibrations HEAT (Wet Chemistry) Total Lysine = Reactive Lysine + Reverted Lysine REACTIVE LYSINE - Lysine that has not been destroyed by heat processing

38. Unique NIR Calibrations Lysine: • Essential amino acid – supplied through dietary intake • Total Lysine is not a measure of bioavailability • Reactive lysine – also known as available lysine Standardised Ileal Digestibility (SID) - Lysine • Accounts for basal endogenous losses • Lysine digested and absorbed from diet in the small intestine REACTIVE LYSINE - Lysine that has not been destroyed by heat processing

40. Other Applications of NIR Machines

41. Corn Flour Particle Size Whole Corn Applications

42. Particle size Applications Average of the reference (yellow) and average of the NIR predictions (grey).

43. Ground Corn – Particle Size Applications

44. Applications

45. Mixer Profile – 10 samples, NIR spectra Spectroscopy

46. Mixer profiling Spectroscopy t1 t4

47. Mixer Profile - % Coefficient of Variation Spectroscopy NIR gives a direct measure of mixability; all other methods report the mixability of a specific feed additive or component, and includes assay variation.

48. Spectroscopy

49. Spectroscopy

50. Summary Instruments will get smaller and more affordable Modelling software will become more powerful producing more accurate calibrations Applications will continue to grow in complexity NIR will be recognised as a true primary spectroscopy technique