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monsanto 07-31-06c
 

monsanto 07-31-06c

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    monsanto 07-31-06c monsanto 07-31-06c Presentation Transcript

    • OVERVIEW Renessen Leverages Monsanto’s Biotechnology Expertise and Cargill’s Process Capabilities to Create New Feed Opportunities 50:50 JV between Cargill and Monsanto, formed in 1999 Interface of biotechnology and process technology Monsanto Cargill Processor Seed & Crop Grain Food Biotech Grower Inputs Handler Manufacturer Animal Producer Developing Technology 1
    • OVERVIEW Increased Ethanol Demand Will Set Stage for Domestic Competition Between Feed and Fuel U.S. ETHANOL MARKET OUTLOOK ESTIMATED MARKET DEMAND FOR U.S. CORN 14 30 DEMAND FOR CORN USED IN ETHANOL IN THE NEXT 12 25 10 YEARS WILL SQUEEZE BILLIONS OF GALLONS MILLIONS OF ACRES CURRENT CORN SUPPLIES 10 20 8 15 2005 2015 6 44% 28% FEED 10 4 FUEL 15% 35% 5 2 ALCOHOL 0 0 18% 18% EXPORTS 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ETHANOL PRODUCED CORN USED FOR ETHANOL OTHER, 23% 19% INCLUDING FOOD SOURCE: PROEXPORTER NETWORK, MONSANTO AND RENESSEN ESTIMATES 2
    • OVERVIEW Corn Is Distributed To Four Major Downstream Markets CORN DISTRIBUTION BY MAJOR MARKET FOCUS: CONVENTIONAL DRY MILL PROCESS Yellow #2 Hammer Yellow #2 Hammer Distillation Ethanol Distillation Ethanol Elevator Fermentation Elevator Fermentation Corn Mill Corn Mill Drying Drying Exports Wet Mill Feed Mill Exports Wet Mill Feed Mill DDG DDG Swine Poultry Cattle Swine Poultry Cattle Cattle Cattle 3 DDG = DISTILLERS DRIED GRAIN
    • OVERVIEW Market Discontinuities Create Opportunity For Value Creation FOCUS: IOWA OVERVIEW ETHANOL PLANTS ARE BEGINNING TO BE PLACED IN AREAS WHERE CORN PRODUCTION HAS TRADITIONALLY BEEN USED AS FEED IN HOG PRODUCTION DUBUQUE THE DRAW ON CORN FROM THE ETHANOL- SIOUX ANIMAL FEED DYNAMIC WILL CITY CEDAR CREATE “MICRO RAPIDS COMPETITIVE MARKETS” DRIVING IOWA COMPETITION FOR CITY AMES LOCAL CORN DAVENPORT OPPORTUNITY ETHANOL DES PRODUCTION THAT MOINES ALSO CREATES A VALUABLE FEED STREAM FOR HOGS BURLINGTON CAN BRIDGE THE LOCALIZED DEMAND SHORTAGES FOR CORN AND CREATE NEW VALUE ETHANOL PLANTS UNDER ETHANOL PLANTS IN WET MILL CONSTRUCTION PRODUCTION MOST LEAST INTENSITY OF HOG PRODUCTION: INTENSE INTENSE Source: USDA and Renessen Estimates 4
    • TECHNOLOGICAL LEADERSHIP Nutrient Rich Corn Is the Precursor to Value in the Renessen Corn Processing System NUTRIENT COMPOSITION OF MAVERATM HIGH VALUE CORN WITH LYSINE Protein Oil Lysine %Wt % Wt % Wt COMMODITY 3.5 .25 8.0 CORN MAVERATM HIGH 6.5 .40 8.5 VALUE CORN WITH LYSINE First crop-based biotech product for animal feed Recently deregulated in the U.S. Coupled with Renessen’s Corn Processing System, brings unique value 5
    • TECHNOLOGICAL LEADERSHIP Renessen Is Developing New Corn Processing System Increasing Refinery Yield and Co-Product Benefit 2006 UPDATE CONVENTIONAL DRY MILL PROCESS FOR ALL PRACTICAL NUTRIENT NUTRIENT PURPOSES, THE RENESSEN Hammer Hammer DENSE Distillation Ethanol DENSE Elevator Fermentation Distillation Ethanol CORN PROCESSING SYSTEM Elevator Fermentation Mill CORN Mill BOLTS ON TO A CORN CONVENTIONAL DRY MILL PROCESS Drying STEP 1: Drying RENESSEN FRACTIONATION AND EXTRACTION PROCESS START WITH A NUTRITIONALLY DENSE CORN DEVELOPED THROUGH HIGHLY BIOTECH OR A CONVENTIONAL HIGHLY HIGH PROTEIN 4 3 FERMENTABLE Fractionation HYBRID FERMENTABLE Fractionation LOW OIL DDG FRACTION FRACTION STEP 2: High oil High oil PROCESS IT THROUGH A fraction fraction NOVEL PROCESS TECHNOLOGY DEVELOPED BY CARGILL AND RENESSEN Nutrient-rich Nutrient-rich STEP 3: Oil extraction Oil extraction meal meal DELIVER FOUR HIGH VALUE REVENUE STREAMS 1: HIGH OIL CORN OR BIODIESEL Corn oil Corn oil 2: HIGH VALUE SWINE AND POULTRY FEED 3: HIGHLY FERMENTABLE STARCH 4: HIGH PROTEIN, LOW OIL DDG HIGH VALUE SWINE 1 2 HIGH OIL CORN AND POULTRY FEED FOR FOOD OR BIODIESEL 6
    • TECHNOLOGICAL LEADERSHIP Preliminary Testing of Renessen’s Corn Processing System Is Delivering on Expectations KEY MARKET ACRES U.S. Renessen Corn AVAILABLE MARKET 1B GALLONS Processing System 0% PERCENT PENETRATED PROJECT UPDATE Preliminary 2006 Pilot Test Results Refinery Trials: • Low oil fraction achieved as good as or better refinery yields compared with conventional dry mills Animal Trials: • Free lysine was confirmed to be concentrated in nutrient rich meal for swine • Nutrient rich meal profile equivalent to that derived from yellow #2 corn with synthetic additives DDG Trials: • Confirmed DDG profile with higher protein content • Confirmed reduction in amount of DDG produced Future Testing and Trials • Perform in vitro and in vivo digestibility trials for energy determination and amino acid digestibility of DDG • Accurately measure ethanol yield, final ethanol titer concentration and yeast viability performance 7
    • TIMELINE Pilot on Track for Near-Term Commercial Opportunity 2006 FRONTLINE UPDATE PILOT PLANT COMMERCIAL THREE PARALLEL EDDYVILLE, IA START-UP PLANT PROCESSES ARE IN PILOT PLANT AND COMMERCIAL START-UP MOTION TO GENERATE A CONSTRUCTION PLANT UNIQUE OPPORTUNITY BEGINS CONSTRUCTION WITH ETHANOL AND ANIMAL FEED PROOF OF CONCEPT PROCESS 1: 2007 2008 2006 VALIDATE THE TECHNOLOGY AT THE EDDYVILLE PILOT PLANT 3 FEED TRIALS 1)LARGE COMMERCIAL SWINE PRODUCER FEED TRIAL 2ND WAVE OF 2)UNIVERSITY TRIAL DATA 3)CARGILL ANIMAL FEED TRIALS COLLECTION NUTRITION TRIAL FEEDING TRIALS PROCESS 2: 2007 2008 2006 CONDUCT LARGE SCALE RESEARCH TRIALS EXPANDED ACREAGE OF LEAD HYBRID IN LAUNCH MAVERA HIGH FINAL MAVERA HIGH VALUE CORN DEVELOPMENT VALUE CORN WITH LYSINE GERMPLASM DEVELOPMENT PROCESS 3: 2007 2008 2006 ACCELERATED FOCUS ON HIGH NUTRIENT CORN IN ELITE GERMPLASM 8