Export Markets

1. Export Markets CFGA AGM Winnipeg, Manitoba Dec 14, 2010 Edward J. Shaw

2. Agenda • 1. Existing Markets • 2. Emerging Markets • 3. Future • 4. Questions

3. Existing Markets • 1. Japan-fibre • 2. Korea-fibre • 3. Taiwan-fibre • 4. US • Equine • Dairy -protein and fibre

4. Emerging Markets • A. Middle East-protein and fibre • Brief history • Water • Environmental issues • Safe, secure supply of food and feed stuffs • -current status • 600,000 tonnes to 2.5 million tonnes by 2025(Abu Dhabi alone) • Foreign ownership and control • -Saudi to come on stream for about 4 times this amount

5. Emerging Markets cont • B. China • 1.4 billion people • Increase in milk consumption • Demand for high quality forages • -current status • Protocol signed with US and shipping significant amounts of dairy grade alfalfa • CFIA in long process of developing Canada protocols

6. Emerging Markets continued • India • Importing significant dairy genetics • Will require high quality protein and fibre products

7. Future • 1. New world currency, water • Water for irrigation is competing with urban requirements California, Arizona, Columbia Basin • Middle East countries stopping utilization of water for low valued crops • China high saline water available in first and second aquifers • 2. Fibre and protein demand • China and India represent over 40% of the world population and are just staring to require higher protein food stuffs, milk, cheese, meats

8. Future cont • 3. View of Future • Areas of natural rain fall will become valuable • Increased demands for high protein foods • Increase demands for meats, and milk • Increased demands for forages high in protein and fibre • Mexico will become an important importer • Future appears bright for agriculture products

9. Questions

10. Thanks • Manitoba Forage • Wayne • Interim executive