Presented by Lizzie Ekeberg Lehnen Alex Heilman

2. Agenda
○ About Mercaris
○ Why Mercaris- challenges in the Organic and Non-GMO
markets in the United States
○ North America Organic Market Size
○ North America Organic Acreage
○ Demand Drivers & US Organic Imports
○ Mercaris Survey Prices
○ Mercaris Data Services
○ Mercaris Auction Platform

3. Market Data Service and Trading Platform for Organic
and Non-GMO agricultural commodities
Who we are…..

4. WHY
MERCARIS
?

5. Why the Mercaris data service - lack of
market transparency
In the United States, the market for conventional grains and
oilseeds is transparent in terms of the availability of
information as well as price discovery through the Chicago
Board of Trade futures and options market. However, this
transparency does not exist in the Organic and Non-GMO
markets. Information about acres planted, market size, price
trends, and imports are extremely challenging to find for two
main reasons...

6. Annual acreage
fluctuations
Acres can fluctuate widely year
over year due to growers
entering and exiting these
markets.
Extreme Market
Competition
The specialty grain and
oilseeds market is small and
highly competitive so
participants are reluctant to
share information about their
trades.

7. Why the Mercaris auctions platform… lack
of price discovery
In the conventional markets, the Chicago Board of Trade
futures prices serve as a centralized pricing mechanism
which is relied upon to accurately value agricultural
commodities. There is no such system that exists for the
organic and Non-GMO markets.

10. CME Corn Futures
Bid
Ask
$3.70
$3.71
Market value
$3.705
Organic Corn
Bid
Ask

11. Why Mercaris- consumer demand
Consumers are demanding more Organic and Non-GMO
products and have an increased awareness about where
their food is coming from as well as its sustainability.

12. Organic as Driver of Food Industry Growth
Source: OTA State of the Industry 2016
Organic Food Sales 2015
1. US $43.3B
2. Canada $3.5B (2013)

13. Why Mercaris- summary

14. NORTH
AMERICAN
MARKETS

15. North America Organic Market Size
TBD! - Update in the coming weeks

16. North American Organic Acres by Major Crop

17. North American Organic Acres by Major Crop

18. North American Organic Acres by Major Crop

19. US Organic Operation Growth
As of April - USDA AMS announced
13% growth from 2015 to 2016, in
certified organic operations.
Double digit growth trend in US
organic sector continues
Source: USDA AMS, April 2017

20. Is Organic Demand Outpacing Supply?
Annie’s president at expo
west: “Today 4-5% of the US
food market is organic, and I
think it will ultimately get to
20%”
Canada:
Organic Food and Beverage
Sales 1.7% share of market
(source: OTA)Source: USDA

21. US
IMPORTS

22. Short Term Solution: Organic Grain Imports
More than 75% and 22% of US organic soybean and US organic corn
supplies were imported in 2016, Jan. 2017 was monthly record

23. US Organic SB Imports by Month
January 2017, a record month since reporting began in 2013

24. US Organic Soybean Importing Countries, past
12 months

25. Current Market Conditions
Bullish Conditions
○ Late Spring Frost
○ Concerns over NAFTA
Bearish Conditions
● Continued pressure from organic imports
● Higher than expected yields in 2016

26. Organic Grain Prices Ultimately Followed Conventional
Mercaris Organic Grain Index™ fell 2% compared to an increase of 1% in the conventional grain market.
Both organic corn and soybean (food and feed) prices fell. Since conventional grain prices bottomed last
fall, prices have increased in the conventional market by 10%. Conversely, organic grain prices are 5%
lower over the same time frame.

27. MERCARIS
DATA

28. New Crop Forward Organic Corn Prices at Discount
March 2017
Feed
$437
(-7.1%)
• Organic feed corn prices slightly lower versus last year.
• Food grade premiums: $504 CAD/MT

29. Organic Soybean Spot Prices Lower, Limited Contracting
March 2017
Feed
$912
(-
5.6%)
• Organic feed SB prices slightly lower versus last year.
• Average food grade prices we have seen March’17 - $1,083 CAD/MT

30. Organic Feed Wheat Prices
March 2017
Feed
$515
(-4.2%)
• Organic feed grade Wheat prices slightly lower versus last year.

31. Mercaris Data Service
Screenshots, Mercaris Data Service Reports
Raw Data & Analytics
○ Volume weighted average prices
○ Spot & Forward
○ Food & Feed
○ US Regional basis
○ Canadian
○ IP vs. Conventional price Tracking
○ Trade Volume reports

32. ○ North American market
prices, supply and demand
analysis
○ Custom organic, non-GMO,
IP industry analysis
○ Organic & Non-GMO Corn
○ Organic Wheat
○ Organic & Non-GMO
Soybeans
○ Organic & Non-GMO SB Meal
○ Organic & Non-GMO Oil
Commodity Market Research

33. MERCARIS
TRADING

34. Mercaris Online Trading Platform
1. Matches buyers and growers electronically
2. Secure, centralized location for transactions
3. Low transaction costs
4. Competitive market prices
5. Fast, secure payment
6. Electronic or via check

35. ○ Find new buyers/sellers;
○ Secure, fast payment;
○ Save time by marketing on-line;
○ No fee to list, US $0.10/bushel once sold
Mercaris Auction Platform

36. Mercaris Auction System
➢ Set your specifications;
including reserve price;
➢ Auction Records & Invoices
stored on-line
➢ Track Delivery/Payment
Progress right from Account

37. Special Thanks to

38. Thank You!
Lizzie Ekeberg
Director of Market
Operations
lizzie.ekeberg@mercaris.com
01.651.402.4210
Alex Heilman
Director of Sales
alex.heilman@mercaris.com
01.347.522.0631