Soy 2020 Our Vision. Our Destination.

Transcription

1 Soy 2020 Our Vision. Our Destination. The U.S. soybean industry will be the global marketplace leader Illinois Soybean Association Soy 2020 Roundtable April 5, 2011

2 Thank You! Soy 2020 Summary Inclusive visionary process to ensure successful future for U.S. soybean industry Brings all parts of U.S. soybean value chain together to plot strategy: Farmers Processors Academia Representatives of food, feed, fuel and other relevant industries Led by steering committee with representatives from entire soy value chain

3 Soy 2020 Objectives Provide overarching vision and strategies for all segments of U.S. soybean industry Ensure successful future within global marketplace Engage all soy stakeholder groups

4 Soy 2020 Collaboration Thank You! (organizations represented on the Soy 2020 steering committee) American Farm Bureau Federation American Soybean Association Archer Daniels Midland Company CHS Inc. CoBank, ACB Gordon Denny, LLC Illinois Soybean Association John Deere Kellogg Company Latham Farms Monsanto Owensboro Grain Pioneer United Soybean Board University of Illinois

5 Soy 2020 Process Soy 2020 Vision process doesn t predict the future. It does: - Explore challenges and opportunities - Use scenario planning approach - Track market indicators and interview industry experts bi-annually to measure current and future industry outlooks - Use research results to provide guidance for each segment of the industry - Incorporate relevant Soy 2020 strategies into unique organizational planning across the value chain Soy 2020 is on a path to implement strategies across the industry to benefit all

6 Scenario Planning Overview Soy 2020 utilizes a Long Range Planning Methodology called Scenario Planning Scenario Planning has several benefits, it helps organizations: Think out-of-the-box Take a long-term view of the industry/market to guide critical decisions Isolate the most critical and influential factors influencing success Provide structure to consider and quantify the impact of these factors Create robust strategies for success in an uncertain market Establish a process to adjust strategies as needed As a result of the Scenario Planning Process, the soy industry gains: An effective approach to Long Range Planning Clarity regarding specific critical market place drivers Focus on critical market factors (leading indicators) to track moving forward An ongoing process to support the proactive adjustment of business strategies

7 Scenario Planning Process SOY 2020 SCENARIO PLANNING PROCESS Identify Focal Business Decision Determine Driving Forces Identify Certainties & Critical Uncertainties Select Scenario Logics Develop Scenarios Implications & Strategy Development Select & Track Leading Indicators Implications & Strategy Adjustment

8 Scenario Thank Planning You! Soy 2020 steering committee identified four potential industry scenarios based on technology adoption for soy versus other crops. Soybean Innovation Advantage Soybean Innovations II Shared Success I Full Speed Ahead Soybean Star No Innovation Advantage for Soybeans III IV Off-Shore Migration Forward to the Past Other Crop Innovation Advantage Other Crop Innovations No Innovation Advantage for Other Crops

9 Potential Scenarios Full Speed Ahead Sustainable soy technology innovation advantages Technology does not advance for competing crops Shared Success Sustainable technologies exist for soy and other crops Numerous benefits challenge competitiveness Off-Shore Migration No soy-specific technology innovation advantages Other crops have sustainable advantages. Soy struggles to compete Forward to the Past No sustainable technology or innovations for soy or other crops Constant state

10 Soy 2020 Indicators Thank You! Soy 2020 monitors leading market indicators The indicators signal to stakeholders which scenario is beginning to play out in the marketplace The industry uses Soy 2020 as a planning tool and catalyst to develop and implement specific action plans The industry can get a jump start on the competition

11 Soy 2020 Indicator Tracking Four rounds of indicator tracking, conducted every six months since March 2008, show a Shared Success scenario: Sustainable technologies exist for soy and other crops, with numerous benefits challenging competitiveness: Crops enhanced by technology innovations Integrated distribution channel Largest share of research funding aimed at improving logistics and infrastructure Commercialization of higher energy corn and DDGs with higher protein content (competing with soybean meal as feed sources) Increased commodity prices Expansion of ethanol and biodiesel production boosted rural economy Consumers and producers have multiple appealing choices

12 Soy 2020 Indicator Tracking Results of Rounds 1-6 SOYBEAN INDUSTRY INDEX More II. Shared Success I. Full Speed Ahead SOYBEANS INNOVATION R1 1-Year R1 5-Year R2 1-Year R2 5-Year R3 1-Year R3 5-Year R4 1-Year R4 5-Year R5 1-Year R5 5-Year R6 1-Year R6 5-Year III. Off Shore Migration Less More OTHER CROPS INNOVATION IV. Forward to the Past Less

13 Soy 2020 Strategies Thank You! Strategies developed on two levels: Common strategies: - Implemented for all potential strategies - Soybean value chain must: Anticipate Collaborate Act Scenario-specific strategies: - Address unique opportunities and challenges within each scenario - Leadership and support roles vary in the value chain for each scenario

14 Soy 2020 in Action Soy 2020 scenarios and strategies: Encourage better thinking and learning Enable industry decision makers to assess and reassess their strategic options to act with confidence Require collaborative effort from the entire value chain To implement Soy 2020, the industry: Launched rollout and initial communication of Soy 2020 to the soybean industry Tracked market indicators Shared updates and collaborated around the indicator tracking results Conducted ongoing communication and education for the soybean industry

15 Soy 2020 in Action Soy 2020 steering committee exploring a collaborative, industry-wide effort to increase protein levels by the year 2020 Research shows quality of U.S. soybeans as measured by the combination of oil and protein content has declined Decline decreased value created by U.S. soy industry Further decline could lead to potential loss of U.S. soybeans competitive advantage Soy 2020 steering committee engaging with processing sector to collect data to understand trends and issues related to soybean protein levels Also meeting with industry stakeholders to discuss challenges, define protein-level trends, quantify value of increasing protein levels, identify needed actions by each industry segment

16 States Roles in Soy 2020 State participation is vital to the success of the Soy 2020 initiative States should develop a strategy that will: Keep the soy industry moving forward Maintain a thriving industry at the local (state) level Map a plan for the future Identify unique strengths, weaknesses, opportunities and threats and competitive advantage (SWOT analysis) Leverage those strengths to position state for a thriving future in feeding the world's need for soy products

17 Illinois Soybean Association Participation Enhance Illinois position as a leader in soybean production and soybean product technology Foster a thriving environment for soybean business development in Illinois Collaborate with key stakeholders Identify and develop new opportunities for growth Be proactive and prepared for new innovations

18 Looking Ahead By combining the data Soy 2020 provides as a planning tool, with defined action-planning by industry leaders, Soy 2020 is on a path to implement strategies across the industry to benefit all. Soy 2020 is committed to the success and viability of all sectors of the soybean industry.

19 Follow Soy 2020 Soy 2020 leadership will continue to: Track market indicators Identify trends and the scenario emerging in the industry Ensure maximum profitability of the entire value chain For updates, subscribe to the Soy 2020 e-newsletter by ing

20 Thank You!