Dynamic Growing Systems Working with SOREDI

Southern Oregon Regional Economic
Development, Inc.
Friday, October 31, 2008

Mission Statement
Dynamic Growing Systems’ mission is to serve as
a leader in the future of food by delivering the
most nutrient rich, ecologically sound,
localized food growing systems to local
communities and businesses world wide.
“Let food be thy medicine and medicine be thy food” …Hippocrates

Agenda
• DGS Team of Advisors
• DGS Model
• DGS Localized Food System Model
• DGS Key differentiators
• SOREDI Collaboration opportunity
• Rogue Valley Market opportunities
• Phased approach & resource requirements

DGS Team

The DGS model

Optimized health & wellbeing
• Food as medicine
– Preventative health care vs disease management
– Wellbeing & decreased health care costs
• Nutrient rich
– Nutritional farming
– Minimized chemicals
• GMO free
– Natural biodiversity
– Heirloom & native seeds

Environmental stewardship
• Closed loop system
– Recycle waste
– Innovative efficient technologies (aeroponics)
– Minimize chemical inputs & pollution
• Ecological regeneration
– Soil food web
– Promote biodiversity
• Biodiversity & seed saving
– Seed saving for future generations
• Nutritional farming

Local living communities
• Demand based growing
– Direct feedback from consumers
• Connecting growers and consumers
– Human face to farming
• Nutritional education
– Raising awareness of consumers
• Food Security
• Generate local economies

Economic vitality
• Perpetual harvest
– Advanced growing technologies
– Increased yields
• Localized production and distribution
– Just in time (JIT) growing increasing freshness
– Cost savings by cutting out distribution costs
– Cost savings by reduced fuel & refrigeration costs
• Alternative energies
– Solar and biomass technologies reduce energy costs
– Carbon credits

DGS Closed loop system

Exampled of a Closed loop system

DGS differentiators
• Alternative energies
• Aeroponics technology
• Season extender technology
• Distribution system
• Fertilizer technology
• IPM & BioInsecticides
• Experience in the Industry

Alternative energies
• Reduces cost & resources:
– Highest operating cost in greenhouse: heating & cooling
– DGS system reduces energy operating costs by greater than 70%
– DGS system reduces total operating costs by 17% (due to energy
cost savings)
• Alternative Energy Advisor
– Tod O’Connor

Aeroponic technology
– DGS system reduces water usage by 85%
• Technology partners
– Several Proprietary Systems
• Aeroponic Specialist Advisors

Season extender technology
– 300 % - 500% increase in yield compared to open field growing
due to year round growing
– Retractable roof
– Light and temperature control
– Insect exclusion
– Climate adaptable (heat retention/reduction, air/wind control,
cold /rain/snow protection)
• Technology partners
– Cravo

DGS distribution system

DGS distribution system
Current (industry) centralized model DGS localized distribution model
Too many middlemen Grower direct to Retailer (margin gain)
Lack of Quality Control/Assurance Accountability with guaranteed quality -
DGS “Locavorist” brand
16% of total supply lost through shrinkage and
spoiling
Quality/Freshness/Extended Shelf Life =
minimized losses
Surplus farming inefficiencies Demand Driven is Just-In-Time precision
CO2 footprint from high food miles and
refrigeration
Biofueled delivery trucks in direct supply chain
minimizes carbon footprint and earns Carbon
Credits
Direct feedback from Consumers - continuous
improvement in quality

DGS Distribution model plans for and manages
• Reduced inventories
• Tighter supplier integration
• Smaller, more frequent customer orders
• Smaller pick/ship unit quantities
• More frequent, smaller receipts
• Virtually 100% accuracy
• Faster customer order turnaround
• Faster dock-to-stock movement
• Facility compression/consolidation – doing more
with less

Possible Collaboration
• Opportunity for SOREDI to Provide Seed
funding for Phase 2.0
• Incorporate DGS system as food component
for Ashland & Regional Localized Food Projects
• Create a cooperative effort with other
businesses in the valley to unify a brand for
our local farmers and suppliers.

Market Opportunities in the (USA)
• Rogue River Valley in Southern
Oregon with good agricultural
land
• 300,000 population
• Consumes $72 million in
produce (@ retail prices)
• Grows $4 million in produce (@
retail prices)
• $68 million “trade gap”
• 1/2 of this ( $34 million ) is
vegetables
• DGS Market Share in year one:
10% = $3.5 m

Phased approach
Current – 31st Oct 08 15th Nov 08 – 28th Feb 09 15th Mar 09 – 15th Mar 11 1st May 11 – 31st May 13
assessment period assessment period assessment period

2.0 Design pilot
• Technology stream
• Market & distribution stream
• Resource management stream

2.0 Design pilot
• Technology stream
– Due diligence on technologies
– Secure technology partners
– Design pilot technology integration plan
– Finalise location for pilot
– Secure location for pilot
– Create proprietary nutrients for aeroponics system

2.0 Design pilot
• Market & distribution stream
– Detailed market assessment
– Detailed competitive assessment
– Design market strategy (entry, barriers, customer
segments, product placement & distribution channels)
– Design pricing strategy
– Design logistics model

2.0 Design pilot
• Resource management stream
– Finalise DGS strategy
– Build business plan based on selected technology & pilot
location
– Raise funding for pilot based on business plan & design
components
– Design internal DGS business processes
– Design internal DGS management structures

Resource Requirements
• DGS is looking for a $350,000 investment to
be used for PHASE 2.0 and Part of PHASE 3.0
• This investment could be ½ debt & ½ equity

THANK YOU!

Dynamic Growing Systems Working with SOREDI

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