The document summarizes a presentation about VCMx, a Value Chain Management Exchange that will facilitate the development and implementation of a verified, internationally governed cash commodity exchange. It will allow qualified buyers, sellers, and service providers to trade agriculture commodities. The business model involves a multi-sided value chain, verified cash physical product exchange, value chain development and management. It will have a Canadian corporate structure governed by VCMx and GAFTA councils. An agile development approach will be used to build the electronic trade platform in monthly sprints over 24-36 months. Funding will be sought from IRAP West, Western Economic Diversification, and Agriculture Canada programs. The prototype aims to address needs in the agriculture industry

2. VCMx Presentation
Wednesday June 19, 2103
Kramer IMAX Boardroom
Regina, Saskatchewan

3. What is
VCMx?

4. Value Chain Management Exchange
will facilitate the development and implementation
of a verified, internationally governed cash
commodity exchange for the trading of agriculture
commodities between qualified buyers sellers and
service providers.

5. Value Proposition:
Trust

6. Value Proposition:
Verification

7. Value Proposition:
Breaking
down barriers

8. Value Proposition:
Expansion
of Trade

9. Business model
• Multi-sided value chain
• Verified cash physical product exchange
• Value chain development
• Value chain management

10. Corporate structure
• Canadian incorporation -- VCMx Inc.
• For-profit share corporation
• Open industry share structure
• Governed by VCMx Council / GAFTA Council London UK
• Participant verification EDC Canada
• Product verification approved by international VCMx
grading/agronomy members
• Service verification by approved international VCMx service
providers

11. Trade platform

12. Trade platform
• Multi-sided electronic trade platform
• Real time/anonymous product and service price
discovery
• Negotiable product/process attributes
• Standard form GAFTA contracts
• GAFTA arbitration

13. Trade
interface

18. Agile development
• Project will start with 6 months of analysis
• Sprints (updates) released each month for
testing starting in 7th month
• Estimate between 24 and 36 monthly
releases
• Usable system with basic functionality by
12th release

19. Business Analyst Development Unit Testing User acceptance
testing
Sprint 1
Sprint 2 Sprint 1
Sprint 3 Sprint 2 Sprint 1
Sprint 4 Sprint 3 Sprint 2 Sprint 1
Sprint 5 + Fixes Sprint 4 Sprint 3 Sprint 2
Sprint 6 + Fixes Sprint 5 Sprint 4 Sprint 3
Agile development
• The contents of each sprint planned as
development progresses
• Analysis, Development and Testing occurring in
parallel

20. Development team
• Paul Burch – Project Manager / Business Analyst
• Mark Wileniec – Business Analyst
• Dean Holroyd – Application Architect
• Lee Melhorn – Technical Architect
• Alex Flegel – Programmer
• Jason Crump – Programmer
• Chad Frentz - Designer

21. Funding initiatives (public/private)
IRAP West
• Innovation and funding services customized to specific
needs

22. Funding initiatives (public/private)
Western Economic Diversification
• Innovation
• Business development
• Community economic development

23. Funding initiatives (public/private)
Agriculture Canada Growing Forward 2
• $3 billion for five years
• Innovation, competitiveness, market development
• Agri Innovation
• Agri Competitiveness
• Agri Marketing

24. Prototype implementation

25. VCMx addresses the major drivers
pulling for change in the marketplace:
• Producers need to maximize product value -- there are no commodities.
• Buyers want traits that suit or match their production processes, which allows for
more margin potential.
• Officials must trace problems “from gate to plate”.
• Intermodal shipping service providers (truck, rail, ocean carriers,
container lessors) will adopt more effective use of their logistics assets and more
environmentally-efficient use of fossil fuels to move products.
The industry needs better market coordination and business model
innovation

28. Thank you for your
participation
Visual production by
Gerald Horne
VCMx Communications Director
horne@shaw.ca