A MULTI-CLIENT STUDY PROPOSAL Food Traceability:

A MULTI-CLIENT STUDY PROPOSAL Food Traceability: Standards and Systems for Tracing and Tracking Food and Agri-Products April 2002 The Sparks Companies, Inc. (Sparks) has organized a multi-disciplinary team to study, evaluate and prognosticate about the role of food traceability for global agriculture and food. Joining the group with Sparks are Perficient, a leading ebusiness solutions provider, and Akin, Gump, Strauss, Hauer & Feld, L.L.P. (Akin Gump), one of the nation s leading law firms. This team will bring together a unique blend of agricultural, food industry, technology and legal expertise to tackle this extremely important issue to all segments of the global food chain. In addition, the study will be provided to assist both federal and state policymakers and administrators to establish required foundations on this topic. Please proceed to read more about this foundational study. INTRODUCTION Heightened awareness of food-related safety issues among today s food consumers, coupled with a more educated public, is driving the demand for more information about the vertical food supply chain and specifically, the origin and handling of basic commodities and food products produced and consumed throughout the developed world. Recent animal health and food-borne illness scares in all parts of the globe are creating a demand for source verification, food safety and supply chain identification of food products. During the last couple of years, great concerns with regards to E.coli, lysteriosis, BSE (mad cow), foot and mouth, and the like have driven many processors to change their handling practices and have altered many consumer eating habits. While most governments have established processes and systems to ensure food quality and safety (e.g., HACCP), it has been human error, in part, that has created the spread of many of these diseases and illnesses, and perhaps has created the need for an established product traceability standard for the food industry. The current demands of the consumer and those serving the consumers, coupled with the many demands of international agricultural authorities, provide the impetus for this study. Is traceability feasible? What technologies are being considered? How effective will they be? How costly? Can the industry provide a guaranteed safe product? Can industry fully implement country of origin labeling (COOL) on meats, vegetables, etc.? Is it possible to implement? What will the value be? Who will pay for it the consumer? the processor? or all food chain participants? What will the impacts of this additional cost be? Who will be the gainers and the losers? How much detail? What technology? Transitions?

DEFINING TRACEABILITY In a nutshell, traceability is the ability to follow and document the origin and history of a food product. From core genetics to the dinner plate, tracing involves identifying all procedures and practices that have impacted the life of a given product and is documented and available for the purchaser or any other supply chain participant to see. THE IMPORTANCE OF SUPPLY CHAIN IDENTIFICATION AND MONITORING The United States has typically set the operating standards for international food handling, but may be lagging regarding traceability. With respect to this issue, there are practices currently in place in Europe and Asia that will foreshadow what will take place here in the United States. To that end, there is currently not a standard process that identifies a traceable product, nor is a brand or social equity of a traceable product currently established in many of the end-user markets. This study will identify: If brand equity for traceability characteristics can be established; The potential value of that brand equity attribute; and Who, within the supply chain, will be reaping the rewards of an established traceability program. Additionally, the broader U.S. food and agriculture industry might be able to learn important lessons from many of the traceability tools currently deployed in Europe and Asia. Perhaps the identification of useful products, technologies, procedures, and guidelines will create consensus about a workable food traceability system for the United States. Still, questions exist regarding: (1) the ability of any supply chain to deliver a completely identified product to the consumer (whether that product is crop-based, beef, pork, poultry, produce, or dairy), and (2) the consumers willingness to pay a premium for the traced product. In short, the value of a traceability tool requires identification and quantification. CONSUMER DEMANDS As indicated earlier, today s consumers are demanding more and more information. Issues abound about the content, cost and consumer requirements versus government regulations regarding labels. What does the future hold in this regard? This information pull, coupled with food safety concerns, underpins the need or desire for a formalized process of traceability. A testament to the consumers demands is related to the increase in organic food sales and the growth of the organic markets worldwide; this still necessitates the question, Are organic foods safer than conventional foods, and would they benefit from traceability programs? A critical concern for food companies is the willingness of consumers to punish a brand that does not live up to food safety expectations. Can traceability programs make a brand bullet proof against consumer backlash? TECHNOLOGY IMPACTS How can traceability objectives be met? What are the options and implications of each route? Clearly, technology will play a key role in delivering a functional traceability model for the food industry. This study will identify the many platforms and the needs/ways to integrate these into Legacy Systems, Enterprise Resource Planning Systems (ERP systems), homegrown systems, and others. Additionally, the study will provide a clear understanding of how wireless and Internetbased capabilities may make the ability to trace a product more viable and cost effective. Lastly, we intend to answer whether or not this integration can be accomplished and relate the technical status of such tracings now and prospects for the future. 2

THE LEGALLANDSCAPE The development of a traceability standard for U.S. food products raises a host of legal issues that will need to be addressed. For example, a traceability system well may require increased information flow among market participants in the vertical food supply chain. This could raise antitrust issues, as well as legal liability concerns, including how statements or claims will be verified and how other market participants might be affected if one participant in the supply chain is found to have made false claims regarding a product. Intellectual property laws likely will play a large role in determining the commercial feasibility of traceability. For example, affected parties may look to the patent laws to protect novel tracing technologies, processes and methods of doing business in order to safeguard their investment. In addition, any property interest of the party who expends sweat of the brow to compile tracing data for delivery to the public will need to be balanced with the free and transparent availability of such data to the public and to health authorities. The lack of sui generis database protection in the United States and the scope of the U.S. copyright laws will also affect how tracing databases are protected. In addition, the development and implementation of a traceability system will have significant national trade ramifications of both a legal and a policy nature. For example, imported food products would presumably be required to comply with U.S. traceability requirements. This could impose significant burdens on foreign food exporters to the United States, who might assert that the U.S. system was a non-tariff trade barrier that violated certain U.S. obligations under the WTO. Conversely, U.S. food exporters might find that the U.S. traceability system did not meet the expectations or requirements of foreign countries that import U.S. food products. Foreign efforts to block U.S. food exports on these grounds would need to be rebuffed, in part by recourse to WTO and other international trade instruments. Former USDA Secretary Dan Glickman and other lawyers from Akin, Gump, Strauss, Hauer & Feld, L.L.P., will work with the Sparks study team and the study participants to address these and other legal issues that could arise under a traceability system. BALANCING INTERNATIONAL, FEDERAL AND STATE AUTHORITY The recent farm bill debate has served to highlight the importance and role of state-based policy initiatives and the tug-o-war between federal and state interests. Food traceability looms as a "singularly contentious topic as federal and state regulators attempt to sort out respective authority. Moreover, these same issues are other-driven, as global non-u.s. consumers dictate their related traceability requirements and require that U.S. exporters comply. In short, there is a triangle of authoritative/regulatory centers (international, federal and state) that will face the task of establishing workable guidelines that meet consumer interests, support trade and balance parochial self-interests. This study will make a best efforts attempt to establish a framework within which to sort out this complex set of issues. HOW THIS STUDY WILL HELP In order to answer the questions posed above, the Sparks Companies, Inc.; Perficient and Akin Gump study team proposes to address six primary and interrelated areas of inquiry in this multi-client study: The supply and demand for traceability and the pending implications for the vertical food chain. The value proposition of traceability and current/future technological approaches/solutions. 3

The technology landscape of the agriculture and food industry, and how traceability can be accomplished. The international policy environment, and how new standards for measurement may be identified and established. The impact on the global vertical food chain when a verified sourcing mechanism is in place. Other external factors (e.g., biotech, food safety, consumer trends, etc.) that will impact the industry. This study will provide a single, comprehensive picture of the status and future of traceability. Specifically, an outlook from the consumer s perspective will be developed to provide the study s clients, at all levels of the vertical food chain, a glimpse of the importance of traceability to the consumer, and the potential for its market share. Examples will be shown, in the form of case study descriptions of traceability programs currently in use. The applicability of existing programs to wider application within the food industry will be determined. Study subscribers at the retail food and foodservice levels will be able to gauge whether or not there is a market for a traced product, what premium the consumers are willing and able to pay for the product, and how a traced product could impact supplier margins (based on trends in the organic and whole food markets, as well as an international case study of current traced products). What goes with this is a rigorous look at the risk to foodservice and retail companies for failing to meet consumer expectations. At the distributor level, this study will provide a glimpse of how to provide food safety and traced products to the end-user, while not altering the product. Additionally, we will provide a glimpse into the potential cost increases in handling traced products. For processors, this study will identify their traceability needs and how a traceability system would be implemented. We will provide a clear road map for technology, products, and the potential impact on margins. For the livestock, dairy, poultry, and produce operations, this study will define a strategy for tracking products throughout the entire vertical food chain, and provide recommendations on tracking tools that will enable the producer to provide a traced product, as well as to know the value of his herd/crop in real time. Implementation of country of origin labeling (COOL) on perishable food products poses huge challenges to the various vertical supply chains to assure that imported products are being merchandised in compliance with COOL regulations. For the investment community, what impact will traceability (or lack of) have on a food industry firm s economic performance? Moreover, this study will define the risks to consumer food companies of dealing with food safety issues and the related approaches. The provisions for traceability ensure a high level of environmental and health protection and pave the way for a proper labeling system. Margot Wallstrom, EU Environment Commissioner One of the questions we need to answer is whether or not we need multiple agencies dealing with food safety responsibilities. Tom Ridge, Homeland Security Director American agriculture is quite simply the greatest industry we have in America today. Jon Wefald, Kansas State University President Assuring shareholders and employees at their annual meeting that the food served by his restaurant chain is safe. There are checks and balances in the supply system. We re confident it s controlled. Chris Sullivan, Chairman and Chief Executive Officer, Outback Steakhouse 4

PRELIMINARY STUDY OUTLINE I. Background The landscape of the food industry - Growth of world markets - Recent foodborne illness and animal health scares, and their relative economic impact - Global production within the vertical food chain - Current international tracing and tracking initiatives II. Policy Environment U.S. federal Legal Interpretations European governments Asian markets Australian policies and procedures USDA initiatives Homeland Security Initiatives/Needs Expected changes in U.S., Canadian and European legislation that will impact agriculture and food safety - How does traceability impacts HACCP? III. The Role of State and Local Government How will states address the need for and implementation of food traceability regulations? State and federal interface: Who has authority? Current state-based initiative Prospects for the future Homeland security initiatives related to federal and state agencies IV. Technology and Cost Factors Review of current technology How will traceability impact industry-average operating costs? Integrating a traceability tool, and how to implement Costs associated with linking the food vertical Case study examples of systems currently in use V. Supply Chain Analysis Beef, pork, poultry, dairy, produce, grain-based products, etc. Define the supply chain Traceability issues at each level - Needs, specifications, information transfer Technology interface Benefits/cost assessment Implications for industry margins - Stability or intensity of competition Identification of key drivers of industry success over the next ten years VI. Segment Impacts by Value chain participant Financial institutions Regulatory agencies VII. Conclusions and Strategic Implications Consumer demand The value proposition Impacts on margins Technological advances Critical success factors Banking/investment 5

STUDY SCHEDULE AND DELIVERABLES! June 19, 2002 Pre-study Conference: A meeting of subscribers and the Sparks/ Perficient study team will be held in Memphis, Tennessee, at the Sparks offices, to review the detailed plans for the study and to identify particular issues that clients would like to receive special attention.! September/October, 2002 Comprehensive Study Report and Presentation Materials: All study participants will be provided up to three copies of the study report.! October/November, 2002 Post-Study Seminar: A meeting, at the Sparks Memphis offices, of subscribers and the Sparks/Perficient/Akin Gump study team to present the study s findings and discuss related implications.! Optional Presentations at Client Offices: Clients may arrange for proprietary presentation of the study s results at their offices. These meetings will be provided at a mutually convenient day to the client and the study team. These meetings will require a professional fee of $4,000 for two presenters plus reimbursement of travel expenses. THE SPARKS/PERFICIENT/AKIN GUMP STUDY TEAM About Sparks Companies, Inc. is a world leader in broad-based agricultural and commodity market research, analysis and consulting. Founded in 1977, the company now serves many of the world s leading agricultural firms and institutions. From its headquarters in Memphis, Tennessee, Sparks now spans the globe with a far-reaching network of services and clientele. The company's professional depth and experience allow it to provide a wide range of services related to the economic and management concerns of clients. Underpinning these services, Sparks s principal strengths lie in an expansive information base and a professional and experienced staff. Representing Sparks s primary asset, our employees are well-trained and seasoned researchers and consultants with extensive backgrounds in business and government; most hold advanced degrees in agriculture or related fields. The Sparks team has extensive experience in agribusiness and similar areas as well as in agricultural policy decision-making. Many Sparks employees have gained insights from past government service in senior policy, analysis and advisory positions; from major trade associations; from land-grant universities; and as senior officials of leading agribusiness companies. The world's agricultural and food industry is expanding and remains in a constant state of change. Successful businesses and institutions must deal with rapidly shifting market conditions that are driven by international influences, technological innovations, policy shifts, weather conditions, emerging consumers and fluctuating consumer preferences. To continue succeeding in this environment, businesses must have access to reliable market information and authoritative economic consulting services. It is Sparks s economic expertise and diverse client base that combine to provide unique insights, risk management and strategic planning for agribusinesses around the world. In its role as a world leader in comprehensive commodity, food industry and agribusiness research and consulting, Sparks offers several broad categories of services: Research/Analysis Business Consulting Education/Training News/Communications 6

About Akin, Gump, Strauss, Hauer & Feld, L.L.P. has maintained one of the largest and most diverse public law and policy practices of any major law firm in the world. Akin Gump understands that solutions to many issues facing clients involve the processes by which public law and policy is conceived, developed and implemented by governments in the United States and around the world. The growth of government over the last decade demands that legal and other professionals think expansively and creatively when they develop and implement strategies. The analytical process must encompass a careful evaluation of how government local, state, federal or international can, should or will impact the desired objective. Akin Gump's public law and policy practice has been built on principles that stress careful evaluation of client issues, detailed design of strategies and tactics to achieve objectives, and advocacy that is executed in an effective, timely and coordinated manner. About Perficient, a leading ebusiness solutions provider to Global 2000 and major mid-sized companies, enables its clients and partners to optimize profitability and strengthen customer relationships through reliable, quick-to-market ebusiness solutions. Providing technology consulting, application development, and systems integration services, Perficient is a leading information technology solutions provider in agribusiness, offering systems expertise that spans the agribusiness value chain from agricultural chemical companies and producer input companies to commodity merchandisers, food manufacturers, food distributors, and food retailers. Perficient's agribusiness clients include such notables as Bunge, Cargill, CHS Cooperatives, and Louis Dreyfus, among others. Perficient maintains six offices throughout the United States, Canada, and the U.K., serving customers throughout the Americas and Europe. Consider that no food concern in recent memory has caught public attention like the outbreak of BSE, first in Europe and now in Japan. And, the impacts of that disaster were amplified by previous food safety problems in Europe, outbreaks of foot and mouth disease in Europe and Asia, and then the September 11 th terrorist attacks. The result is a near frenzy in the minds of consumers worldwide, and the policy makers who oversee public safety programs. Even in the United States, it likely is only a matter of time before traceback requirements are imposed on a number of food products. 7

SELECT BIOGRAPHIES Sparks Bruce A. Scherr, President and Chief Executive Officer. Dr. Scherr has been with Sparks since 1987 and has worked extensively with companies to develop improved price risk management procedures, to organize and manage purchasing and merchandising programs, and to assist agribusinesses and public sector institutions in strategic and tactical planning. Formerly, he was president of Sparks, Jacobs, Scherr, Inc. (SJS), a sister company to Sparks, and president of Agri-Commodities, Inc., an agriculture consulting firm based in Andover, Massachusetts, which was acquired by SJS. Prior to forming Agri-Commodities, Dr. Scherr was a divisional vice president at Data Resources, Inc., where he developed and utilized for the public and private sectors the first commercially available econometric model for U.S. agriculture. Dr. Scherr received his bachelor's degree from Rutgers University and his master's and doctorate degrees from Purdue University, all in agricultural economics. Currently, he is a member of the Board of Trustees of North American Electric Reliability Council (NERC). He served as a member of the Board of Directors for Desert STAR Inc., an electrical transmission Independent System Operator for the Desert Southwest from January 2000 through February 2002. In addition, Dr. Scherr has served as a member of the University of Tennessee s (UT) Institute of Agriculture Agricultural Development Board and UT s Committee for the Future. He is a member of several honorary research and agricultural societies, a member of the National FFA Foundation Sponsors Board 2000 through 2001 and a former advisor to the President's Council of Economic Advisers and National Aeronautics and Space Administration. Thomas P. Scott, Senior Vice President. Mr. Scott is head of Sparks's Project Consulting Group. His responsibilities include general consulting with a specialty emphasis on the grain industry and international markets. Specialized work has included analyses of the implications of the U.S./Canada Free Trade Agreement and long-term asset demand in the transportation industry. In addition, Mr. Scott has extensive experience in the agribusiness sectors of Central Europe and Southeast Asia. Prior to joining Sparks, he had various assignments in management, trading logistics and merchandising for the Continental Grain Company. He received his bachelor's degree in agricultural economics from Cornell University and a master's in business administration from the Amos Tuck School of Business Administration at Dartmouth College. Rob M. Westmoreland, Executive Vice President. Mr. Westmoreland's responsibilities include overseeing Sparks's grains, oilseeds, and other crop and food ingredient research and analyses functions and client services. His many food and agribusiness consulting assignments include commodity planning, price risk management and business strategic planning for a wide spectrum of U.S. and international food and agribusiness companies. Previously, Mr. Westmoreland was group vice president and general manager of Pillsbury Industrial Foods. His management experience includes economic analyses and commodity risk management, business strategic planning, marketing, and general management in food processing. He is an economics graduate of Rice University and of the Stanford University Graduate School of Business. Richard S. Andersen, Senior Vice President. Dr. Andersen's responsibilities include research, client service and consulting with Sparks's livestock, meat, poultry and dairy-based clients. Prior to joining Sparks, Dr. Andersen was a regional extension economist for the Alberta Agriculture Department, a livestock market analyst and policy adviser to the Alberta Minister of Agriculture, and a research economist for Cook Industries, Inc. He received his bachelor's and master's degrees in agriculture from the University of Alberta and his doctorate degree in agricultural economics from The Ohio State University. 8

William C. Motes, Senior Vice President. Dr. Motes, located in Sparks's Washington, D.C., office, has primary responsibilities that include client consulting for international commercial clients and development projects. Formerly, he was a principal member of Economic Perspectives, Inc. and served as director of policy analysis for the Secretary of Agriculture (1979-81). Dr. Motes was associate director of USDA's Budget and Program Evaluation Office and also was legislative assistant for agriculture for U.S. Senator Dick Clark. He holds degrees in agricultural economics from Kansas State University and received his doctorate in agricultural economics from Iowa State University. Dennis B. McGivern, Senior Consultant, Livestock and Meat. Mr. McGivern s primary responsibilities include red meat analyses, meat-based project consulting as well as client service. He came to Sparks from XL Foods Ltd., Calgary, Alberta, where he worked for 16 years in the areas of economic and market analyses, long-term planning, boxed beef pricing, and sales and market strategy development. Prior to his work at XL Foods, Mr. McGivern spent three years as a market analyst for CANFAX (the market information division of the Canadian Cattlemen s Association) and four years as territory manager for Shur-Gain Division, Canada Packers Inc. He received his bachelor s degree in agricultural sciences from the University of British Columbia and his master s degree in economics from the University of Calgary. Barry J. Burns, Senior Consultant. Working with Sparks s consulting group, Mr. Burns provides management and operational expertise in the hotel, restaurant and institutional food and beverage industries. He has worked extensively with several large restaurant, hotel and casino companies developing business plans, educational tools, concepts and products. Mr. Burns specializes in turn-around initiatives at several levels of the food vertical. Mr. Burns comes to Sparks from the Belz organization (Lifestyle Ventures), Memphis, where he was vice president of operations; prior to Belz, he was director of development for Clubhouse International, Chicago, and corporate director of restaurant operations for Harrah s Entertainment. Mr. Burns was the Northshore Chapter vice president of the Louisiana Restaurant Association and served as chairman for the Center of Excellence Service Team within Harrah s Entertainment. Mr. Burns is a presenter at the Sparks/Kansas State University Agribusiness Education Program. Mr. Burns attended Louisiana State University, and received his bachelor s degree in hotel, restaurant and tourism management from the University of New Orleans. Scott A. Richman, Vice President. Mr. Richman provides management consulting services to agribusiness, with emphasis on feasibility studies and the positioning of products within specialized markets. He has worked extensively with the agricultural biotechnology and grain processing industries on products ranging from herbicide resistant crops to ethanol. He received his bachelor's degree in economics from Vanderbilt University and his master's degree in international affairs at Columbia University where he specialized in international business. Jason A. Lawton, Consultant. Mr. Lawton s primary responsibilities include research and analyses for domestic and international consulting clients. He came to Sparks from Madison, Wisconsin, where he worked for the banking division of Marshall & Ilsley Corporation as a senior agricultural credit analyst. His work there included credit analysis for new and existing clients, development of loan presentations, analyses of financial and cash flow statements, and establishment of guidelines and training programs on agricultural credit. Mr. Lawton received his bachelor s degree in economics from the University of Wisconsin-Stevens Point, and his master s of business administration from the University of Wisconsin-Madison. Juan E. Sacoto, Senior Consultant. Mr. Sacoto's primary responsibilities include research and analyses for international and domestic consulting clients. Prior to joining Sparks, Mr. Sacoto worked as a financial and equity analyst. While at Sparks, Mr. Sacoto has worked with several commodities as an analyst for agricultural markets in the United States and abroad. He 9

also has gained extensive practical experience evaluating the agricultural markets in Mexico and South America. His work often involves market assessment, financial and competitive analyses, economic modeling, and economic impact and risk management studies. Mr. Sacoto is fluent in Spanish and has extensive cross-cultural training. Mr. Sacoto received his bachelor's degree in finance from Jacksonville State University and his master's in international business administration from The University of Memphis. John F. Whims, Senior Consultant. Dr. Whims is responsible for providing consulting and analytic research efforts in risk management, economic development as well as livestock and meat-related special projects. Prior to joining Sparks, Dr. Whims was in private consulting, conducting economic and financial analyses for the processed foods and agricultural commodity markets. He also was a member of a governor s task force that developed a long-term strategic plan for the State of Michigan s food and agriculture industry and performed extensive policy and economic impact analyses using input-output modeling. He received a bachelor's degree in business administration from Greenville (IL) College, a master's of business administration from Central Michigan University and a doctorate in agricultural economics from Michigan State University. Akin Gump Former Congressman and U.S. Secretary of Agriculture Dan Glickman is a senior advisor in the public law and policy practice group of Akin, Gump, Strauss, Hauer & Feld, L.L.P. in Washington. Commencing August 1, 2002, Secretary Glickman becomes Director of the Institute of Politics at the Kennedy School of Harvard. Secretary Glickman advises the firm's clients on a wide range of matters, including food and agriculture, health, biotechnology, international trade and aviation issues. Secretary Glickman served as the Secretary of Agriculture from March 1995 until January 2001. Under his leadership, the department modernized food safety regulations; forged international trade agreements to expand U.S. markets; and improved its commitment to fairness and equality in civil rights, both in the treatment of its employees and in the execution of its programs. During his tenure, the department also focused extensively on improving our nation's diet and nutrition, and on fighting hunger. As an advocate of biotechnology and its potential to increase agricultural productivity and preserve the nation's natural resources, Secretary Glickman led the effort to ensure that this new technology is governed by an effective regulatory approval process based on sound science. As the steward of the U.S. Forest Service, he led the effort to protect more than 40 million acres of natural forest land from road building. Before his appointment as Secretary of Agriculture, Secretary Glickman served for 18 years in the U.S. House of Representatives, representing Kansas' 4 th Congressional District. During that time, he served as a member of the House Agriculture Committee, including six years as chairman of the subcommittee that had jurisdiction over most federal farm policy issues. Moreover, he was an active member of the House Judiciary Committee, where he was a leader on technology issues. In addition to his focus on agriculture, Secretary Glickman was a leading congressional expert on general aviation policy and successfully authored legislation to provide product liability protection for small plane manufacturers, and also wrote legislation, now law, that increases criminal penalties for the destruction of religious property. Glickman also authored the law creating the U.S. Institute of Peace. He also served as chairman of the House Permanent Select Committee on Intelligence, where he had oversight responsibility over the Aldrich Ames spy case. Before his election to Congress in 1976, Secretary Glickman served as elected member and President of the Wichita, Kansas, School Board; was a partner in the Wichita law firm of 10

Sargent, Klenda and Glickman; and worked as a trial attorney at the U.S. Securities and Exchange Commission. He received his B.A. in history from the University of Michigan and his J.D. from the George Washington University. He is a member of the Kansas State and the District of Columbia Bar Associations. Secretary Glickman serves on the board of directors of the Chicago Mercantile Exchange; Communities in Schools; D.C. Central Kitchen; America's Second Harvest; Food Research and Action Center; RFK Memorial Foundation; and The Farm Foundation. He is the chairman of the George Washington University Global Advisory Board; co-chairman of the U.S. Consensus Council (with former Governor Marc Racicot); chairman of the Global Nutrition Institute: co-chairman of The Pew Initiative on Food and Biotechnology (with former Congressman Vin Weber); and a senior fellow and part-time instructor in the public policy departments at Georgetown University and Wichita State University. J. David Carlin. J. David Carlin is a partner in the public law and policy practice group of Akin, Gump, Strauss, Hauer & Feld, L.L.P. in Washington. Mr. Carlin returned to Akin Gump in 1998 after serving at the U.S. Department of Agriculture as assistant secretary for congressional relations, a position to which the President appointed him in 1995. In managing the Office of Congressional and Intergovernmental Relations, he served as the primary liaison between the Department and both Congress and the White House Office of Legislative Affairs. Prior to joining USDA, Mr. Carlin was an associate at Akin Gump, where he focused on banking, international trade, and other policy issues. While at the firm, he co-founded the Homeless Children's Tutorial Project, Inc. (Project Northstar), a volunteer program serving homeless children in Washington. He served as president of the organization in 1992 and has also been a member of its board of directors. Mr. Carlin received his B.A. summa cum laude in political science and modern languages in 1984 from Kansas State University, where he was elected to Phi Beta Kappa, and his J.D. in 1988 from Harvard Law School. While at Harvard, he served as co-chairman of the Harvard Law School Legislative Research Bureau. Mr. Carlin was a summer associate at Akin Gump in 1987. He is a member of the District of Columbia and Missouri Bars. Perficient Kenneth M. Faanes. Mr. Faanes has over 16 years of information systems experience and much of that has been in leadership and management roles. Currently, Mr. Faanes is an executive director of business development for Perficient s Minneapolis region and leads the business development activities in their Commodity Markets Practice. Prior to Perficient, Mr. Faanes was President of Javelin Solutions, an Internet consulting company based in Minneapolis, Minnesota. In addition to his responsibilities helping guide Javelin, Mr. Faanes was in a leadership position on a $100 million client/server system at one of the world s largest agribusiness companies. He has extensive experience in the agribusiness industry in both business and technical roles. As a technical manager, Mr. Faanes has experience managing leading-edge development and quality assurance teams, budgeting and forecasting, resource planning and allocation, work effort planning and estimating, and change control management. Previously, Mr. Faanes was a manager at Ernst and Young, a project manager with SHL Systemhouse and an entrepreneur. Mr. Faanes received a Bachelor of Science in Mathematics from the University of Wisconsin Stout and a Master of Science in Business Administration from the University of Minnesota. 11

Warren Golla. Mr. Golla has been actively involved with the design, development, and management of high-end information technology systems and services from a variety of leadership positions and perspectives for over ten years. Currently, Mr. Golla is the Managing Director for Perficient s Commodity Markets Practice. As such, he sets direction for the national practice, assists in the business development activities, and is the thought leader in forming Perficient s offerings for the agribusiness industry. Previously as the CTO for Javelin Solutions, Mr. Golla focused his attention on technical strategy, trend analysis and prediction, business-to-business application integration, online trading communities, distributed computing architectures, applied security, cryptography, remote project collaboration, and rapid development initiatives. At Javelin, Mr. Golla represented technical capabilities on all business development initiatives, and he participated in multiple client engagements in the role of technical architect. Mr. Golla also led the group that adjusted the firm s technical concentration according to future technological trends and current business opportunities. Mr. Golla has recently earned a Master of Science in Software Engineering, complementing earlier Bachelor of Science and Master of Science degrees in Aerospace Engineering from the University of Notre Dame and the University of Michigan, respectively. STUDY FEES The fees for participating in the study are US$18,500 for current Sparks or Perficient clients and US$22,000 for non-clients. These fees will be billed 50 percent upon the study s initiation and 50 percent upon delivery of the study s report. The fees entitle subscribers to receive the comprehensive report on Food Traceability, and to attend the study kickoff meeting and the group presentation. The costs of participants travel to the kickoff meeting and post-study seminar, as well as the professional fees and the travel expenses of the Sparks/Perficient staff to company offices for individual presentations (optional), are not included in the study fees indicated above. 12

ENROLLMENT FORM Yes, I want to participate in the special multi-client study entitled Food Traceability: Standards and Systems for Tracing and Tracking Food and Agri-Products. The cost of the study for current Sparks and Perficient clients is $18,500 and $22,000 for non-clients. One half will be billed upon initiation of the study and the remaining one half upon my receipt of the final written report. FAX to (901) 766-4471 Please have someone contact me to provide further information. Name: Signature: Title: Company: Street Address: City, State, Zip: Telephone: Fax: E-mail Address: Return this form to: Dr. Bruce A. Scherr President and CEO Sparks Companies, Inc. 775 Ridge Lake Blvd. Memphis, TN 38120 Phone: 901-766-4511 Fax: 901-766-4471 E-mail: bscherr@sparksco.com