Making safe, affordable & abundant food a global reality

1. Making safe, affordable & abundant food a global reality

2. A critical time and ours to act on • The time is now: • Record oil prices • Commodity price spikes • Food security fears • Trade restrictions • Global recession

3. The wave of global hunger

4. Technology.. The vital ingredient to making safe, affordable and abundant food a reality Technology- practices, products, genetics

5. Technology enables three rights

6. Food, a basic human right

7. The wave of global hunger • Hunger is the No. 1 health problem in developing world • Lack of food kills more than war, AIDS, malaria and tuberculosis combined1,2 • 25,000 deaths per day worldwide from hunger3

8. Hidden hunger “Hidden hunger” in industrialized nations affects 1 in 7 2 in 5 1 in 8 1 in 5

9. The benefits of technology U.S. agricultural output, inputs, and total factor productivity, 1948-2008 Index, 1948=1 • 60 years • 150%+ output • Same input 3 Output Productivity Inputs 2 1 0 1948 2008 1958 1968 1988 1998 1978 Source: ERS data product, Agricultural Productivity in the United States.

10. Thought leader on hunger “When farmers increase their productivity, nutrition is improved and hunger and poverty are reduced.”1 • Bill Gates, Gates Foundation January 2011 annual letter “All lives have equal value.”

11. Choice, a consumer right

12. Do consumers want technology? Choice, a consumer right

13. Choice, a consumer right • International Consumer Attitudes Study (ICAS) review of consumer attitudes & behaviors • Key criteria: • Unaided questions • Spending data

14. Choice, a consumer right The Three Rights: Food, Choice, Sustainability

15. ICAS: Food buyer The Three Rights: Food, Choice, Sustainability

16. ICAS: Lifestyle buyer The Three Rights: Food, Choice, Sustainability

17. ICAS: Lifestyle buyer The Three Rights: Food, Choice, Sustainability

18. ICAS: Fringe The Three Rights: Food, Choice, Sustainability

19. Other 1.99% 2010 Nielson Survey: Food buyer Factors Influencing U.S. Food Purchase Decisions (2010) U.S. • Over 26,000 households surveyed in October, 2010 • 98% buy based on: • Taste • Cost • Nutrition1 Taste 43.48% Nutrition 23.02% Cost 31.51% According to a 2010 Nielsen survey of U.S. households, the most important factors in food purchasing decisions are taste, cost and nutrition.1

20. Global food sales • Global sales of food produced without technology1 • An important niche, but very small

21. Case study: U.K. • United Kingdom • Historically, a significant food producer & provider to Europe • In past decades, EU policies limited farmers’ access to technologies

22. Case study: U.K. • Many contributing factors • Resulting in… 389% 132% 71% 60,000 Meat imports2 Farm incomes1 (1995-2001) Lost farmers and farm workers1 (1998-2001) Dairy imports2

23. Case study: Brazil • Former food importer • Now one of largest exporters

24. World’s Largest Exporter Case study: Brazil 365% 10X Total crop production (1996-2006)1 Beef exports (tenfold increase)1 Beef, poultry & sugar cane1

25. Case study: Brazil • Brazil’s key ingredients • Climate • Entrepreneurial leadership • Embracing technology • Pro-agriculture policies

26. A change of heart for the EU? “Farmers in the EU must be allowed to choose the tools they need to thrive, and our citizens must be free to select from the widest variety of food choices made possible by our modern food production enterprises.”1 • Paolo De Castro, Chairman of the European Parliament Committee on Agriculture and Rural Development

27. Sustainability, environmentally right

28. Thought leader on sustainability “To feed 9 billion people and maintain the planet, we must freeze the footprint of food.”1 • Dr. Jason Clay, World Wildlife Fund

29. Each pound of beef produced in the U.S. today requires 14% less water1 Beef production & efficiency 1977 14% less per pound of beef than in 1977 2007

30. Each pound of beef produced in the U.S. today requires 14% less water1 34% less land1 Beef production & efficiency 1977 34% less per pound of beef than in 1977 2007

31. Compared to 1977, beef production: Generates 20% less manure1 Beef production & efficiency 1977 20% less per pound of beef than in 1977 2007

32. Compared to 1977, beef production: Generates 20% less manure1 18% smaller carbon footprint1 Beef production & efficiency 18% less per pound of beef than in 1977 1977 2007

33. Technology enables three rights

34. Conclusions The need to boldly move forward is urgent Population climbing fast We have a window of opportunity Grain stocks low Food prices high

35. 5 Reasons to be Hopeful • In all 5 major decision-making areas, the data aligns: • Science, Economics, Social, Environmental & Consumer • 99% of consumers WANT: taste, affordability, nutrition & choice • 500 individuals influence the global food chain • A shift in positive retailer decisions on technology in the last 18 months • Regulatory consistency and predictability paves the way to record innovation

36. A time for action

37. A time for action The Three Rights: Food, Choice, Sustainability