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Identity Preservation

Identity Preservation. Presentation June 03, 2003. by Patrick Van Osch Canbra Foods Ltd. Presentation Outline. JRI/Canbra overview Canbra’s I/P programs I/P: What’s in it for Agribusiness Questions. JRI Overview.

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Identity Preservation

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  1. Identity Preservation Presentation June 03, 2003 by Patrick Van Osch Canbra Foods Ltd 1

  2. Presentation Outline • JRI/Canbra overview • Canbra’s I/P programs • I/P: What’s in it for • Agribusiness • Questions 2

  3. JRI Overview • A subsidiary of James Richardson & Sons, Limited, a privately own Canadian company out of Winnipeg. • JRI, one of Canada’s leading Agribusinesses in the: • Supply of Crop inputs and agronomic information for Canadian Farmers • Marketing and managing the movement of grains and oilseeds worldwide • Blending and supplying top-grade fertilizer and other products for the BC market • Processing and packaging canola based food products 3

  4. Canbra Foods Overview • A subsidiary of James Richardson International Limited (JRI) • Established in 1957, Canbra was one of the first companies in the world to market canola oil products • Markets bulk and packaged Oil, Margarine and Shortening products domestically (Canada and US) and into export markets. • Only fully integrated plant in Canada • From Seed to Consumer Products 4

  5. Canbra’s IP Programs • Two I/P programs exist today: • Non-GMO oil • Initially driven at the request of a key customer • Worked with the customer to understand requirements/expectations • Once I/P program was in place, we marketed to other customers 5

  6. Canbra’s IP Programs • Two I/P programs exist today (continued): • “Functional” Oil • Originally driven by seed development • We partnered with the seed company to develop grower and end use customer interest • Demand is now growing based on value of added traits of the oil. 6

  7. Canbra’s IP Programs Performed by Pioneer on Canbra’s behalf • I/P programs are managed … from selling seed to grow the crop…to production of end use products 7

  8. Canbra’s IP Programs • Why ? • Value added products, therefore opportunities for higher margin. • Our goal is to market value added products where possible and move out of commodity selling • Meeting new end use customer demands • Create loyalty, market other products • New offerings to our grower customers • Often overlooked, but an important part of the equation. 8

  9. What’s in it for Agribusiness • Increasing demand for “functional” foods and ingredients from end use customers (further processors, restaurants, etc) • Increase interest in non food use of grains and oilseeds • New seed variety developments will move from improve production features to end use requirements. This will require I/P systems for introduction and market development • Consumer demand for safer and healthier foods • Shift beyond basic food buying • Growing need for I/P programs driven by: 9

  10. What’s in it for Agribusiness • It requires a closer working relationship from grower to end use customer. • Must be customer driven ! • Additional responsibilities at every step: • Growers must follow specific guidelines • Grain Handling system must keep seed segregated • Processors must have the ability and be willing to interrupt normal production to process unique products 10

  11. What’s in it for Agribusiness ALL INVOLVED REQUIRE WELL DOCUMENTED PROCEDURES AND DISCIPLINE IN FOLLOWING THOSE PROCEDURES TO BE SUCCESSFUL !!! 11

  12. What’s in it for Agribusiness • Increase cost and risk for all… … but greater value (margin) of product along the production chain • Removes some of the price volatility normally found in common commodity markets. • Develops a distinguishable product (branding?), creating customer loyalty (at least for period of time) • Open doors to new customers and markets with unique products to offer 12

  13. What’s in it for Agribusiness • It is not a “silver bullet” to all the industry’s issues! • Canada produces up to 50 million MT of grains and oilseeds a year ... … therefore will need to continue to compete in world commodity markets • But with unique products handled through I/P systems, we can diversify ourselves, increasing the value of a portion of our production, creating new demand and customers loyalty. 13

  14. What’s in it for Agribusiness • To grow the profits of Agribusinesses, we need two basic foundations: • A competitive distribution system to service those commodity markets • A strategy and ability to develop, brand and handle specialty products • Foods • Animal Feed • Nutraceuticals/Pharmaceuticals • Industrial (bio) products • Etc… 14

  15. What’s in it for Agribusiness ……standing still is not an option…… … working for a common goal is a must … 15

  16. Thank You for your timeAny Questions ? 16

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