New Value Added Products: What types of products are coming?

1. New Value Added Products:What types of products are coming? Ganesh Kishore Vice President Technology DuPont Agriculture and Nutrition

2. It is important to acknowledge that the first generation agronomic traits have provided significant benefits to consumers Reduced pesticide use Safer practices Enhanced sustainability Availability and affordability Enhanced quality Elimination or significant reduction in use of old generation insecticides “No-till” agriculture minimizing soil erosion Soil, energy, increased productivity Low percent of disposable income Mycotoxin reduction, innovative safety evaluation techniques

3. Despite the controversy surrounding first generation of plant biotech products, the adoption rates have met or exceeded expectations MM ha’s North America # Ha’s 42.5 (72%) # Farmers 0.9MM 140 Biotech Non-biotech Rest of World # Ha’s 2.6 (5%) # Farmers 5MM 72 Latin America # Ha’s 13.6 (23%) # Farmers 0.1MM 34 25 Total # Ha’s 58.7 ( 1/4 in developing economies) # Farmers 6MM (+20% over ‘01, with >3/4 resource- poor farmers in developing economies) 51% 20% 12% 9%

4. Questions regarding safety, health and environment have been narrowly focused on biotech and the dialog on biotech has not been “wholistic” *A balanced dialog of benefits/risks is also missing

5. Innovation – Biotechnology Innovation will Accelerate New & stacked input traits Genome mapped for most plants of significance Yield traits Plant molecular breeding Fuels Pharmaceuticals Materials Foundation of knowledge established - genome mapped for Arabidopsis Input traits - weed/insect/ disease control Output traits - differentiated grain products 1990-2000 2001-2010 2010+

6. The Agri-Feed-Food value grain is complex; First generation biotech crops have focused on value creation/capture at grower level Seeds Food processing Retail Chemicals Growers Elevators/ Processors Consumer Feed processing Food processing Traits

7. The Agbiotech industry is heavily investing in a number of ‘traits’ that create value downstream of the crop producer Company Renessen Monsanto Cargill Syngenta • Crop/Trait • Corn • Increased energy • Amino acids/proteins • Processor preferred • Soy • Processor preferred • Modified oils • Improved amino acids • Canola • Increased oil • Modified oils • Cotton • Colored fiber • Corn • Processor friendly • Melons • Lower calorie • Personalized/seedless Company DuPont BASF • Crop/Trait • Corn • Increased energy • Improved amino acids • High extractable starch • White corn • Soy • Modified oils • Improved amino acids • Improved meal quality • Sunflower • Modified oils • Corn • Increased nutrient • density

8. The first generation of crop biotech output traits have not performed well in the market place--most of these products have been withdrawn FlavrSavr® Tomato -Calgene Tomato Paste -Zeneca High Energy Corn -DuPont Potato products -Monsanto Laurical® Canola -Calgene Delayed Ripening Tomato -Monsanto Examples:

9. Bruise Resistance Bruise Susceptible Russet Burbank Line Bruise Resistant Russet Burbank Line Examples of first generation crop biotech output traits Solids Uniformity Potato Tuber Cross-Sections of Improved Solids Uniformity Russet Burbank Lines

10. Several key lessons have emerged • Complexity of the value chain and value capture • Identity preservation/costs • Importance of Agronomics • Substitution potential and its impact on value

11. These lessons are being incorporated into the development of second generation output traits Crop Soybean Traits • Reduced raffinose/stachyose/galactinol • Increased oleic • Improved n-3/n-6 ratio • Increased stearic • Lower saturates, linolenate • Low phytate • Reduced trypsin inhibitors, lectins • Increased essential amino acids (lysine, • methionine, tryptophan) • Hypoallergenic beans (p34) • Increased tofu yield • Altered storage protein content (7s vs 11s) • Novel fatty acid composition (medium chain, • long chain ω-3) • Increased tocopherols, sitosterols (phytosterols) • Increased oil, protein • Reduced fiber • Stacks of oil/meal enhancement • Combination of input/output traits • Breeding superior agronomic performance • Breeding disease resistance

12. 16:0 18:0 18:2 18:0 18:1 18:2 18:3 High-stearate canola and soya oil is moving forward • Market • Healthy high fat products • Benefits • Margarines and spreads • with cardiovascular- • neutral saturated fatty • acid • Premier base for quality • and agronomic traits • Technical Status • Engineered high stearate • soybean developed • Field testing canola • Market launch to be • determined Soybean oil High Stearate soybean

13. Other food attributes in hi-oleic soy are also being addressed • High oleic soy can reduce/eliminate trans-fats in hydrogenated vegetable oils • Tans-fats increase LDLs and decrease HDLs and thus not cardiofriendly • High oleic soy oil has high oxidative stability AOM Induction Time AOM Induction Time 250 150 200 100 150 100 50 50 0 0 HOSB HOSU HOC HOCA LLSB HDS HOSBO CLS SBFO SBSO

14. Soybeans with lower raffinosaccharide and higher sucrose content Sugar Content

15. Significant improvements are also being made in corn Crop Corn Traits • Increased energy density/availability • High extractable starch • Improved amino acid quality (lysine, • methionine, threonine, tryptophan) • Improved oil quality (increased oleic) • Increased antioxidant content (tocopherols) • Altered starch quality (amylose/amylopectin) • Reduced phytate • Increased protein content • Increased carotene/altered carotene • Stacks with agronomic • traits • Stacks of embryo/ • endosperm active traits • Breeding into elite • inbreds

16. High carotenoid canola using biotechnology • High carotenoid canola was developed by • seed specific overexpression of phytoene • synthase (microbial source) • Carotene enrichment occurs only in the • seed without any impact on vegetative • tissues • Canola belongs to the mustard family and is • grown in most Vitamin A deficient regions • of the world • Because it is an annual crop, canola offers • the ease of cultivation and could be grown • in regions of needful

17. High carotenoid canola The amount of β-Carotene available is considerably higher than what is present in any other vegetable sources Source Β-Carotene µg/g 30 -110 (60 avg.) 3 - 6 17 0.1 - 5 250 - 450 1,000 - 1,200 Carrots Tomato Melon (orange) Yellow Corn Red Palm Oil (RPO) High Carotenoid Canola Oil (HCCO)

18. Phytosterol reduces cholesterol and plaque deposition in animal models control 20 18 16 cholestyramine 14 blue is total aorta purple is aortic arch 12 10 Phytosterol 8 6 4 2 0 Weeks 0 2 6 12 Control Cholestyramine Phytosterol 1% Cholestyramine 2.25% Plant Sitostanol

19. Canola seeds with increased phytosterol content 4.5 4.0 3.5 3.0 2.5 Fold increase in sterol over control 2.0 1.5 1.0 0.5 0.0 Currently 2% of rape seed oil and 1% of soy oil is sitosterol. T-12 T-13 T-18 T-22 Control

20. Biotechnology is also being leveraged to improve the taste/texture profile of seed products Crop Issues Soybean Beany flavor Astringency Bitterness Texture

21. In addition to increasing concentration of healthful, nutritive substances in major crops, several concepts related to plants-as-factories are also being pursued

22. In regulating differentiated commodities, important to realize that several variations existed in nature/agriculture prior to massive customization High energy corn Waxy corn High amylose corn High protein/improved protein corn Flavored rice Altered starch rice High oleic oilseeds “Natto” soybeans

23. Costs associated with development, commercialization and uncertainty regarding product claims have hampered progress Crop Soybean Trait Issue • Hypoallergenic • Classes of proteins that need to be • reduced/eliminated • Cost of identity preservation • Definition of the customer • Nature of clinical trials