The Future of the Seed Business

Matthew Mouw
Sr. Marketing Manager

Pioneer Hi-Bred, International Inc.

DuPont Agriculture & Nutrition

Global Product Strategy

 Key Economic Factors Shaping Agriculture

Population growth

Rising incomes in developing countries

Increased demand for higher value foods

Yield growth

Tighter supply and demand relationships

North America is more dependent on changes in the global ag

sector

Brazil and China are major sources of uncertainty in world markets

for many commodities

Biotechnology

Global Product Strategy

 Population and Income Growth

Brazil Brazil
Argentina Argentina
China
India
Population China
India
Japan Total (Million
Total (Million People)
People) Japan
EU25 Percent Annual Change
Percent Annual Change
EU25
Canada Canada
US US

0 500 1000 1500 0.0% 0.5% 1.0% 1.5% 2.0%

Brazil Brazil

Real GDP
Argentina Argentina
China China

Per Capita
India India
Japan Japan
EU25 EU25
Canada
Total(Thousand
Total (Thousand 1990
1990 US$)
US$) Canada
US Percent Annual Change
Percent Annual Change US

0 10 20 30 40 50 0.0% 2.0% 4.0% 6.0% 8.0% 10.0%

Brazil Brazil
Argentina Argentina
China
India
Real GDP China
India
Japan Total(Trillion
Total (Trillion 1990
1990 US$)
US$) Japan
EU25 PercentAnnual
Percent Annual Change
Change EU25
Canada Canada
US US

0 5 10 15 0.0% 2.0% 4.0% 6.0% 8.0% 10.0%

Source Information: Pioneer Global Market Economics, PWAF

Global Product Strategy
 Income and Meat Consumption

Kilograms Per Capita

140

Per Capita Income

120 U.S.
and Meat Consumption
In general, countries
with higher levels 100 Australia Canada

of per capita income, Brazil

Argentina
have higher levels 80
EU-25
of per capita meat consumption Mexico
60
China
Japan
With Fish
40 Russia
Japan
Philippines
20 Thailand

India
0
0 5 10 15 20 25 30 35 40 45

Per Capita Income (Th US$)

Source Information: USDA & GlobalInsight

Global Product Strategy
 Meat Consumption Increases with Income Growth

More meat is consumed in 70

Billion Pounds
154
China than any other country
60 Million Metric Tons 132

Total meat consumption in the 50 110

U.S. is expected to grow
40 88
slightly faster than population,
resulting in a small rise in per 30 66
capita meat consumption
20 44

As experienced in 2003-3005, 10 22
animal disease outbreaks
cause major disruptions in 0 2001
2003
0

2005

2001
2003
2005

2001
2003
2005

2001
2003
2005

2001
2003
2005

2001
2003
2005
meat markets
BSE (Mad Cow) Brazi EU-25 Russia Ukraine China
l
Avian Influenza Beef Pork Chicken

US

Source: USDA-PS&D
Global Product Strategy
Biofuels: Putting the Market in Context
US Liquid Transportation Fuels

140 billion gallons of gasoline use on US roads

37.1 billion gallons of diesel used on highways
11.7 gallons of diesel used off-road (farmers use 3.2 billion gallons)

Current Ethanol production: 4.0 billion gallons (7.5 Renewable Fuel

Standard by 2012)
Current estimated US biodiesel capacity: 100 million gallons per year

A bag of Pioneer Seed

Produces ~ 1,200 gals of fuel ethanol
Makes 12,000 gals of E10 gasoline

Global Product Strategy

Ethanol: A major driver in new grain flow patterns Ethanol Plants
ADM,
ADM,
ADM,
ADM, Walhalla
ADM,
ADM, Walhalla
Walhalla
Walhalla
Walhalla
Walhalla
Operational Dry (70)
Operational Wet (10)
Alchem,
Alchem,
Alchem,
Alchem, Grafton
Alchem,
Alchem, Grafton
Grafton
Grafton
Grafton
Grafton Under Construction (17)

Red
Red
Red
# Bushels (mby) 1,797.78
RedTrail
Red
Red Trail
Trail
TrailEnergy,
Trail
Trail Energy,
Energy,
Energy, Richardton
Energy,
Energy, Richardton
Richardton
Richardton
Richardton
Richardton
# Acres 11,985,185
# Units 4,438,957
North
North
North
NorthCountry,
North
North Country,
Country,
Country, Rosholt
Country,
Country, Rosholt
Rosholt
Rosholt
Rosholt
Rosholt Current MMGY 3962
DENCO,
DENCO,
DENCO,
DENCO, Morris
DENCO,
DENCO, Morris
Morris
Morris
Morris
Morris
Central
Central
Central
CentralMN,
Central
Central MN,
MN,
MN, Little
MN,
MN, Little
Little
LittleFalls
Little
Little Falls
Falls
Falls
Falls
Falls
Potential MMGY 1019
James
James
James
JamesValley,
James
James Valley,
Valley,
Valley, Groton
Valley,
Valley, Groton
Groton
Groton
Groton
Groton

Chippewa
Chippewa
Chippewa
ChippewaValley,
Chippewa
Chippewa Valley,
Valley,
Valley, Benson
Valley,
Valley, Benson
Benson
Benson
Benson
Benson
Heartland
Heartland
Heartland Western
Western
Western
WesternWI
WI
WI
WI Renewable,
Renewable,
Renewable,
Renewable, Boyceville
Boyceville
Boyceville
HeartlandGrain,
Heartland
Heartland Grain,
Grain,
Grain, Aberdeen
Grain,
Grain, Aberdeen
Aberdeen
Aberdeen
Aberdeen
Aberdeen Bushmills,
Bushmills,
Bushmills,
Bushmills, Atwater
Bushmills,
Bushmills, Atwater
Atwater
Atwater
Atwater
Atwater
Western
Western WI
WI Renewable,
Renewable, Boyceville
Boyceville
Boyceville

Northern
Northern
Northern
NorthernLights,
Northern
Northern Lights,
Lights,
Lights, Milbank
Lights,
Lights, Milbank
Milbank
Milbank
Milbank
Milbank
ACE,
ACE,
ACE,
ACE, Stanley
ACE,
ACE, Stanley
Stanley
Stanley
Stanley
Stanley
Glacial
Glacial
Glacial Granite
Granite
Granite
GraniteFalls
Granite
Granite Falls
Falls
FallsEnergy,
Falls
Falls Energy,
Energy,
Energy, Granite
Energy,
Energy, Granite
Granite
GraniteFalls
Granite
Granite Falls
Falls
Falls
Falls
Falls
GlacialLakes,
Glacial
Glacial Lakes,
Lakes,
Lakes, Watertown
Lakes,
Lakes, Watertown
Watertown
Watertown
Watertown
Watertown
Minnesota
Minnesota
Minnesota
MinnesotaEnergy,
Minnesota
Minnesota Energy,
Energy,
Energy, Buffalo
Energy,
Energy, Buffalo
Buffalo
BuffaloLake
Buffalo
Buffalo Lake
Lake
Lake
Lake
Lake
ADM,
ADM,
ADM,
ADM, Marshall
Marshall
Marshall Central
Central
Central
ADM,
ADM, Marshall
Marshall
Marshall
Heartland
Heartland
Heartland CentralWI
Central
Central WI
WI
WI Alcohol,
WI
WI Alcohol,
Alcohol,
Alcohol, Plover
Alcohol,
Alcohol, Plover
Plover
Plover
Plover
Plover
Heartland
Heartland
Heartland
HeartlandGrain,
Heartland
Heartland Grain,
Grain,
Grain,Huron
Grain,
Grain, Huron
Huron
Huron
Huron
Huron HeartlandCorn
Heartland
Heartland Corn
Corn
CornProducts,
Corn
Corn Products,
Products,
Products, Winthrop
Products,
Products, Winthrop
Winthrop
Winthrop
Winthrop
Winthrop
Northstar,
Northstar,
Northstar,
Northstar, Lake
Northstar,
Northstar, Lake
Lake
LakeCrystal
Lake
Lake Crystal
Crystal
Crystal
Crystal
Crystal
Ethanol
Ethanol
Ethanol
Ethanol2000,
2000,
2000,
2000, Bingham
Bingham
Bingham
BinghamLake
Lake
Lake VeraSun,
VeraSun,
VeraSun,
Ethanol
Ethanol 2000,
2000, Bingham
Bingham Lake
Lake
Lake VeraSun, Aurora
VeraSun,
VeraSun, Aurora
Aurora
Aurora
Aurora
Aurora Al-Corn,
Al-Corn,
Al-Corn,
Al-Corn, Claremont
Al-Corn,
Al-Corn, Claremont
Claremont
Claremont
Claremont
Claremont Utica,
Utica,
Utica,
Utica, Oshkosh
Utica,
Utica, Oshkosh
Oshkosh
Oshkosh
Oshkosh
Oshkosh
Dakota
Dakota
Dakota
DakotaEthanol,
Dakota
Dakota Ethanol,
Ethanol,
Ethanol, Wentworth
Ethanol,
Ethanol, Wentworth
Wentworth
Wentworth
Wentworth
Wentworth EXOL,
EXOL,
EXOL,
EXOL, Albert
EXOL,
EXOL, Albert
Albert
Albert Lea
Albert
Albert Lea
Lea
Lea
Lea
Lea
Corn
Corn
Corn
CornPlus,
Corn
Corn Plus,
Plus,
Plus, Winnebago
Plus,
Plus, Winnebago
Winnebago
Winnebago
Winnebago
Winnebago Pro-Corn,
Pro-Corn,
Pro-Corn,
Pro-Corn, Preston
Preston
Preston United
United
United
Agri-Energy,
Agri-Energy,
Agri-Energy,
Pro-Corn,
Pro-Corn, Preston
Preston
Preston UnitedWI
United
United WI
WI
WI Grain,
WI
WI Grain,
Grain,
Grain, Friesland
Grain,
Grain, Friesland
Friesland
Friesland
Friesland
Friesland
Great
Great
Great Agri-Energy, Luverne
Agri-Energy,
Agri-Energy, Luverne
Luverne
Luverne
Luverne
Luverne
Great Plains,
Great
Great Plains,
Plains,
Plains, Chancellor
Plains,
Plains, Chancellor
Chancellor
Chancellor
Chancellor
Chancellor Voyager,
Voyager,
Voyager,
Voyager, Emmetsburg
Voyager,
Voyager, Emmetsburg
Emmetsburg
Emmetsburg
Emmetsburg
Emmetsburg Midwest
Midwest
Midwest
Midwest Grain
Midwest
Midwest Grain
Grain
GrainProcessors,
Grain
Grain Processors,
Processors,
Processors, Lakota
Processors,
Processors, Lakota
Lakota
Lakota
Lakota
Lakota Michigan
Michigan
Michigan
MichiganEthanol,
Michigan
Michigan Ethanol,
Ethanol,
Ethanol, Caro
Ethanol,
Ethanol, Caro
Caro
Caro
Caro
Caro
Otter
Otter
Otter Iowa,
Iowa,
Iowa,
Iowa, Hanlontown
Hanlontown
Hanlontown
OtterCreek,
Otter
Otter Creek,
Creek,
Creek, Ashton
Creek,
Creek, Ashton
Ashton
Ashton
Ashton
Ashton Iowa,
Iowa, Hanlontown
Hanlontown
Hanlontown
Broin,
Broin,
Broin, Hawkeye
Hawkeye
Hawkeye
HawkeyeRenewables,
Hawkeye
Hawkeye Renewables,
Renewables,
Renewables, Fairbank
Renewables,
Renewables, Fairbank
Fairbank
Fairbank
Fairbank
Fairbank
Broin, Scotland
Broin,
Broin, Scotland
Scotland
Scotland
Scotland
Scotland Golden
Golden
Golden
GoldenGrain,
Golden
Golden Grain,
Grain,
Grain, Mason
Grain,
Grain, Mason
Mason
MasonCity
Mason
Mason City
City
City
City
City
Sioux
Sioux
Sioux US
US
US
USBio
US
US Bio
Bio
BioEnergy,
Bio
Bio Energy,
Energy,
Energy, Albert
Energy,
Energy, Albert
Albert
Albert City
Albert
Albert City
City
City
City
City
SiouxRiver,
Sioux
Sioux River,
River,
River, Hudson
River,
River, Hudson
Hudson
Hudson
Hudson
Hudson Badger
Badger
Badger
BadgerState,
Badger
Badger State,
State,
State, Monroe
State,
State, Monroe
Monroe
Monroe
Monroe
Monroe
Corn
Corn
Corn
CornLP,
Corn
Corn LP,
LP,
LP, Goldfield
LP,
LP, Goldfield
Goldfield
Goldfield
Goldfield
Goldfield
Wyoming
Wyoming
Wyoming
WyomingEthanol,
Wyoming
Wyoming Ethanol,
Ethanol,
Ethanol, Torrington
Ethanol,
Ethanol, Torrington
Torrington
Torrington
Torrington
Torrington Siouxland
Siouxland
Siouxland
SiouxlandEnergy,
Siouxland
Siouxland Energy,
Energy,
Energy, Sioux
Energy,
Energy, Sioux
Sioux
SiouxCtr
Sioux
Sioux Ctr
Ctr
Ctr
Ctr
Ctr VeraSun,
VeraSun,
VeraSun,
VeraSun, Fort
VeraSun,
VeraSun, Fort
Fort
Fort Dodge
Fort
Fort Dodge
Dodge
Dodge
Dodge
Dodge
Hawkeye
Hawkeye
Hawkeye
HawkeyeRenew,
Renew,
Renew,
Renew, Iowa
Iowa
Iowa
IowaFalls
Falls
Falls Adkins,
Adkins,
Adkins,
Little
Little
Little
Hawkeye
Hawkeye Renew,
Renew, Iowa
Iowa Falls
Falls
Falls Adkins, Lena
Adkins,
Adkins, Lena
Lena
Lena
Lena
Lena
LittleSioux
Little
Little Sioux
Sioux
SiouxCorn,
Sioux
Sioux Corn,
Corn,
Corn, Marcus
Corn,
Corn, Marcus
Marcus
Marcus
Marcus
Marcus Pine
Pine
Pine
PineLake
Pine
Pine Lake
Lake
LakeCorn,
Lake
Lake Corn,
Corn,
Corn, Steamboat
Corn,
Corn, Steamboat
Steamboat
Steamboat Rock
Steamboat
Steamboat Rock
Rock
Rock
Rock
Rock IL
IL
ILIL
ILRiver
IL River
River
RiverEnergy,
River
River Energy,
Energy,
Energy, Rochelle
Energy,
Energy, Rochelle
Rochelle
Rochelle
Rochelle
Rochelle
Husker
Husker
Husker Horizon
Horizon
Horizon
Horizon
Horizon Ethanol,
Ethanol,
Ethanol,
HorizonEthanol,
Ethanol, Jewell
Jewell
Jewell
Ethanol, Jewell
Jewell
Jewell
HuskerAg,
Husker
Husker Ag,
Ag,
Ag, Plainview
Ag,
Ag, Plainview
Plainview
Plainview
Plainview
Plainview Quad-County
Quad-County
Quad-County
Quad-CountyCorn,
Quad-County
Quad-County Corn,
Corn,
Corn, Galva
Corn,
Corn, Galva
Galva
Galva
Galva
Galva
Frontier
Frontier
Frontier
FrontierEthanol,
Frontier
Frontier Ethanol,
Ethanol,
Ethanol, Gowrie
Ethanol,
Ethanol, Gowrie
Gowrie
Gowrie
Gowrie
Gowrie

ADM,
ADM,
ADM,
ADM, Cedar
ADM,
ADM, Cedar
Cedar
CedarRapids
Cedar
Cedar Rapids
Rapids
Rapids
Rapids
Rapids
Amaizing
Amaizing
Amaizing ADM,
ADM,
ADM,
ADM, Clinton
ADM,
ADM, Clinton
Clinton
Clinton
Clinton
Clinton
Midwest
Midwest
Midwest AmaizingEnergy,
Amaizing
Amaizing Energy,
Energy,
Energy, Denison
Energy,
Energy, Denison
Denison
Denison
Denison
Denison Lincolnway
Lincolnway
Lincolnway
LincolnwayEnergy,
Lincolnway
Lincolnway Energy,
Energy,
Energy, Nevada
Energy,
Energy, Nevada
Nevada
Nevada
Nevada
Nevada
Midwest Renewable
Midwest
Midwest Renewable
Renewable
RenewableEnergy,
Renewable
Renewable Energy,
Energy,
Energy, Sutherland
Energy,
Energy, Sutherland
Sutherland
Sutherland
Sutherland
Sutherland New
New
New
NewEnergy,
New
New Energy,
Energy,
Energy, South
Energy,
Energy, South
South
SouthBend
South
South Bend
Bend
Bend
Bend
Bend
Tall
Tall
Tall Grain
Grain
Grain
GrainProcessing,
Processing,
Processing,
Processing, Muscatine
Muscatine
Muscatine
ADM,
ADM,
ADM,
ADM, Columbus
ADM,
ADM, Columbus
Columbus
Columbus
Columbus
Columbus Cargill,
Cargill,
Cargill,
Cargill, Blair
Cargill,
Cargill, Blair
Blair
Blair
Blair
Blair TallCorn,
Tall
Tall Corn,
Corn,
Corn, Coon
Corn,
Corn, Coon
Coon
CoonRapids
Coon
Coon Rapids
Rapids
Rapids
Rapids
Rapids Grain
Grain Processing,
Processing, Muscatine
Muscatine
Muscatine

Platte
Platte
Platte Big
Big
Big
BigRiver,
River,
River,
River, West
West
West
West Burlington
Burlington
Burlington
PlatteValley
Platte
Platte Valley
Valley
ValleyFuel,
Valley
Valley Fuel,
Fuel,
Fuel, Central
Fuel,
Fuel, Central
Central
CentralCity
Central
Central City
City
City
City
City Big
Big River,
River, West
West Burlington
Burlington
Burlington
Aventine,
Aventine,
Aventine,
Aventine, Aurora
Aventine,
Aventine, Aurora
Aurora
Aurora
Aurora
Aurora Abengoa
Abengoa
Abengoa ADM,
ADM,
ADM,
ADM, Peoria
ADM,
ADM, Peoria
Peoria
Peoria
Peoria
Peoria
AbengoaBioenergy,
Abengoa
Abengoa Bioenergy,
Bioenergy,
Bioenergy, York
Bioenergy,
Bioenergy, York
York
York
York
York Cargill,
Cargill,
Cargill,
Cargill, Eddyville
Cargill,
Cargill, Eddyville
Eddyville
Eddyville
Eddyville
Eddyville
Chief,
Chief,
Chief, MGP,
MGP,
MGP,
MGP, Pekin
Pekin
Pekin
KAAPA,
KAAPA,
KAAPA, Chief, Hastings
Chief,
Chief, Hastings
Hastings
Hastings
Hastings
Hastings MGP,
MGP, Pekin
Pekin
Pekin
KAAPA, Minden
KAAPA,
KAAPA, Minden
Minden
Minden
Minden
Minden
Sterling
Sterling
Sterling Aventine
Aventine
Aventine
AventineRenewable,
Aventine
Aventine Renewable,
Renewable,
Renewable, Pekin
Renewable,
Renewable, Pekin
Pekin
Pekin
Pekin
Pekin
SterlingEthanol,
Sterling
Sterling Ethanol,
Ethanol,
Ethanol, Sterling
Ethanol,
Ethanol, Sterling
Sterling
Sterling
Sterling
Sterling AGP,
AGP,
AGP,
AGP, Hastings
AGP,
AGP, Hastings
Hastings
Hastings
Hastings
Hastings Golden
Golden
Golden
GoldenTriangle,
Golden
Golden Triangle,
Triangle,
Triangle, Craig
Triangle,
Triangle, Craig
Craig
Craig
Craig
Craig

ADM,
ADM,
ADM,
ADM, Decatur
ADM,
ADM, Decatur
Decatur
Decatur
Decatur
Decatur
Trenton
Trenton
Trenton
TrentonAgri
Trenton
Trenton Agri
Agri
AgriProducts,
Agri
Agri Products,
Products,
Products, Trenton
Products,
Products, Trenton
Trenton
Trenton
Trenton
Trenton MGP,
MGP,
MGP,
MGP, Atchison
MGP,
MGP, Atchison
Atchison
Atchison
Atchison
Atchison
Northeast
Northeast
Northeast
Northeast Missouri
Northeast
Northeast Missouri
Missouri
MissouriGrain,
Missouri
Missouri Grain,
Grain,
Grain, Macon
Grain,
Grain, Macon
Macon
Macon
Macon
Macon
Lincolnland,
Lincolnland,
Lincolnland,
Lincolnland, Palestine
Palestine
Palestine
Western
Western
Western
WesternPlains,
Western
Western Plains,
Plains,
Plains, Campus
Plains,
Plains, Campus
Campus
Campus
Campus
Campus

US
US
US
Current % of 05/06 corn production Lincolnland,
Lincolnland, Palestine
Palestine
Palestine

USEnergy,
US
US Energy,
Energy,
Energy, Russell
Energy,
Energy, Russell
Russell
Russell
Russell
Russell Mid-Missouri
Mid-Missouri
Mid-Missouri
Mid-MissouriEnergy,
Mid-Missouri
Mid-Missouri Energy,
Energy,
Energy, Malta
Energy,
Energy, Malta
Malta
MaltaBend
Malta
Malta Bend
Bend
Bend
Bend
Bend GPC,
GPC,
GPC,
GPC, Washington
GPC,
GPC, Washington
Washington
Washington
Washington
Washington

ESE
ESE
ESE
ESEAlcohol,
ESE
ESE Alcohol,
Alcohol,
Alcohol, Leoti
Alcohol,
Alcohol, Leoti
Leoti
Leoti
Leoti
Leoti
consumed:
Reeve
Reeve
Reeve
ReeveAgri-Energy,
Reeve
Reeve Agri-Energy,
Agri-Energy,
Agri-Energy, Garden
Agri-Energy,
Agri-Energy, Garden
Garden
GardenCity
Garden
Garden City
City
City
City
City
E.
E.
E.
E. KS
E.
E. KS
KS
KSAgri-Energy,
KS
KS Agri-Energy,
Agri-Energy,
Agri-Energy, Garnett
Agri-Energy,
Agri-Energy, Garnett
Garnett
Garnett
Garnett
Garnett
Iowa: 23%
Abengoa
Abengoa
Abengoa
AbengoaBioenergy,
Abengoa
Abengoa Bioenergy,
Bioenergy,
Bioenergy, Colwich
Bioenergy,
Bioenergy, Colwich
Colwich
Colwich
Colwich
Colwich
Nebraska: 21% Commonwealth
Commonwealth
Commonwealth
CommonwealthAgri-Energy,
Commonwealth
Commonwealth Agri-Energy,
Agri-Energy,
Agri-Energy, Hopkinsville
Agri-Energy,
Agri-Energy, Hopkinsville
Hopkinsville
Hopkinsville
Hopkinsville
Hopkinsville

Minnesota: 18%
South Dakota: 40% Tate
Tate
Tate
Tate&
Tate
Tate &
&
&Lyle,
&
& Lyle,
Lyle,
Lyle, Loudon
Lyle,
Lyle, Loudon
Loudon
Loudon
Loudon
Loudon

26% of USGlobal Product

by 2015Strategy
Panhandle
Panhandle
Panhandle
PanhandleEnergy,
Panhandle
Panhandle Energy,
Energy,
Energy, Dumas
Energy,
Energy, Dumas
Dumas
Dumas
Dumas
Dumas

corn use
 China and Brazil Changing the Global Soybean Market
Global soybean production increased
from 137 MMT to 217 MMT from 1994 Million Metric Tons
35
to 2005
The U.S., Brazil and Argentina have led
30
the production increases
25
Commodity prices have not fallen due
to the increase in production, as China 20
has had to import more to meet their
needs 15

Brazilian surplus has been exported to 10

the world market offsetting the

increasing demand in China 5

The U.S. (exporter) and the EU-25 0

94 95 96 97 98 99 00 01 02 03 04 05
(importer) have been relatively stable United States Net Exports Brazil Net Exports

in the world soybean trade in the last China Net Imports Europe Net imports

decade

Global Product Strategy

Source Information: Pioneer Global Market Economics, PWAF
 Crop Demand Growth in Last Decade

+12% +25% +29%

The growth rate of world The growth rate of pork The growth rate of chicken
population over the last consumption over the last consumption over the last
ten years ten years ten years

+23% +39% +4%

The growth rate of world The growth rate of world The growth rate of world
corn consumption over the soybean consumption over crop area harvested
last decade the last decade

Global Product Strategy

Source: Pioneer Global Marketing - MREADS
 Growth in Total Grain Production
Crop yields need to continue to
increase to keep pace with World Grain Consumption: 1960-2008
increasing incomes, population 2,400
Million Metric Tons

and demand for meat

2,100

If yields dont keep pace, more 1,800

area will be pulled into 1,500

production
1,200

Global corn area increased 4.8% 900

since 1980; production

600
increased 45.0% in that same
time 300

0
More than 130 million virtual 1960-69 1970-79 1980-89 1990-99 2000-08

acres have been created since Population Income & Other

1980

Global Product Strategy

Source Information: USDA & GlobalInsight
Biotechnology Acreage Increasing

4 Major Crops

Global Product Strategy

 Ag Biotechnology is Delivering Across the Board

Improved Food Quality and Taste

Improved Feed Quality

Offer Agronomic Traits

Impact Stress Reduction, Yield Increase
Commercial
2nd Generation Pest and Weed Control
Multiple Pest/Weed Control Traits

1st Generation Pest and Weed Control

Crop Protection

1994 2004 2014

Input Grain Food Food

Growers
Providers Processors Mfg. Sales

Global Product Strategy

 Positioned to Capture Value

Pioneer: $2.8B Revenue Solae: $1.1B Revenue

Market Insight
Food
Feed

Consumers
Input Grain End User
Growers
Providers Processors Mfg. Bio-fuels
Bio-materials
Value Capture

2001-2005: Solid top line and bottom

line growth
Crop Protection: $2.3B Revenue 2006-2010: Pipeline delivers expanded
market, value and growth

Global Product Strategy

 IndustrySelect Linking Seed to Need

More than 100 end-use account projects

and $100 million in Pioneer sales
2006 IndustrySelect
60
Products by Category
Improved Animal Feed
50
Specific feed hybrids for faster weight
40 gain
30 Targets: increased nutrient density and
availability, oil modification, balanced
20
amino acids and improved digestion
10 $2 billion opportunity per year
0 Improved Food
Feed Food Fuel Optimizing taste and health benefits of
soybeans
High performance corn grain
characteristics to meet/exceed processor
specifications

Strong pipeline of transgenic trait

Increased Ethanol Production
Processors realize 2-4% ethanol yield
solutions for all food, feed and fuel
gain
targets

Global Product Strategy

 Bio-Based Economy Value Chain

Fuels

Biomass
Feedstock

Metabolic
Engineering Materials

Growth markets
New products
Chemicals

Oil Chemistry

Global Product Strategy

 Aggressive R&D Strategy

Elite Genetics Biotechnology Chemistry

Most extensive elite
genetics pedigrees
+ Proprietary traits and
Genomic tools
+ Complimentary and
high value solutions

Rich, Balanced Pipeline

Providing game changing solutions for the
entire food and energy value chain

Technology Foundation for Growth

Global Product Strategy

 2005 Rich Crop Genetics Pipeline
Target Markets
Farmer
Processor Discovery
Consumer
Phase 1 Phase 2 Phase 3 Phase 4
Enabling Technology Gene/Trait Proof of Early Advanced Pre-Launch
Launch
Identification Concept Development Development
Anthracnose Stalk Rot Resistance
Fungal Disease Resistance
Glyphosate Resistance
Glyphosate + SU Resistance
Herculex I
Herculex RW
Herculex RW + RR2
Herculex XTRA
Herculex XTRA + RR2
YGCB + YGRW + RR
Corn

YGCB + YGRW + RR2

Corn Rootworm Resistance II
Corn Borer Resistance II
Nitrogen Use Efficiency
Drought Tolerance I
Drought Tolerance II
Drought Tolerance III
Increased Yield I
Increased Yield II
Increased Ethanol Production I
Increased Ethanol Production II
Increased Ethanol Production III
Improved Feed I
Improved Feed II
Improved Feed III
Improved Processing
Seed Production Technology
Asian Soybean Rust Resistance
Glyphosate + SU Resistance I
Glyphosate + SU Resistance II
Soybeans

Cyst Nematode Resistance

Increased Yield I
Improved Feed I
Nutrium Low Linolenic Oil
High Oleic + High Stearic Acid Oil
High Oleic Acid Oil
Omega-3 Oil

Global Product Strategy

 2006 Rich Crop Genetics Pipeline
Target Markets
Farmer
Processor
Consumer
Discovery Phase 1 Phase 2 Phase 3 Phase 4
Enabling Technology
Gene/Trait Proof of Early Advanced Pre-Launch
Launch
Identification Concept Development Development
Anthracnose Stalk Rot Resistance
Fungal Disease Resistance
Glyphosate + SU Resistance
Corn Rootworm Resistance II
Corn Rootworm Resistance III
Corn Borer Resistance II
Corn Borer Resistance III
Corn

Drought Tolerance
Nitrogen Use Efficiency
Increased Yield I
Increased Yield II
Increased Ethanol Production II
Increased Ethanol Production III
Improved Feed II
Improved Feed III
Seed Production Technology
Asian Soybean Rust Resistance
Glyphosate + SU Resistance I
Glyphosate + SU Resistance II
Insect Resistance
Soybeans

Cyst Nematode Resistance

Increased Yield I
Increased Yield II
Improved Feed I
Improved Feed II
High Oleic + High Stearic Acid Oil
High Oleic Acid Oil
Omega-3 Oil

Glyphosate Resistant Cotton

Other Crops

Glyphosate + SU Resistant Cotton

Insect Resistant Cotton
Nematode Resistant Cotton
Insect Resistant Rice
Glyphosate Resistant Canola

Global Product Strategy

Global Product Strategy