Canola is Going Green. JoAnne Buth ABIC 2007

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1 Canola is Going Green JoAnne Buth ABIC 2007

2 Canola Industry Overview Canola Biodiesel Environmental Impact Herbicide tolerant canola Growing Great 2015

3 Acres and Production ,000 Mtonnes/Acres Acres Production Linear (Production) Most valuable crop for 52,000 Canadian farmers

4 % of Conventional and HT Systems % Seeded Acres Year Roundup Liberty Clearfield Conventional

5 Canola Use and Exports 40% crushed CHINA JAPAN Canada U.S.A. MEXICO PAKISTAN

6 Canola Oil Good for Every Body Lowest in saturated fat of any common culinary oil (7%). Contains no cholesterol or trans fat. Good source of the antioxidant vitamin E. Classic High in healthy unsaturated fats (omega 3 & 6) High Stability High oleic, low linolenic Trans fat solution for food service industry

7 Canola Biodiesel

8 Lowest saturated fat content of any available feedstock (7%) = excellent cold flow properties Good oxidative stability from moderate linolenic acid levels Proven record in the EU

9 Mandate 5% renewable fuel by 2012 (2% renewable diesel) Incentives: Up to $.20 per litre declining 20% profitability triggers full clawback 150 million L company cap; 7 million L minimum Elimination of $.04/litre federal excise tax Interest free capital based on producer investment

10 How much canola? Today Announced 2% mandate 3 companies = 70 million litres (ADM Velva start up (321 million) 9 companies = 1.8 billion litres 600 million L 1.0 million T 4.7 million T 1.6 million T

11 Environment

12 Agronomic and Economic Assessment of Transgenic Canola 650 growers surveyed across western Canada Half conventional/ half transgenic (excluded Clearfield) Samples were controlled to match distribution of canola farms by province and ecozone 13 case studies - financial records Serecon Consulting & Koch Paul Associates, 2001

13 Agronomic and Economic Assessment of Transgenic Canola Growers choose transgenic varieties for better weed control, better yield, more profit: 10% yield advantage; reduced dockage Increased revenue - $5.80 per acre Less tillage and summer fallow Fuel savings 31.2 million litres in 2000 Less herbicide - 6,000 tonne reduction in 2000

14 Herbicide Use AI (kg/ha) Conventional HT- canola Total Brimner et. al, 2004

15 2.6 million acres Herbicides used with HT systems fit better with conservation tillage and more flexible rotations

16 GM Canola - Carbon Sequestration Impact Permanent CO2 savings from reduced fuel use Average family car equivalents removed from the road for a year from permanent fuel savings Average family car equivalents removed from the road for a year from permanent fuel savings and additional carbon sequestration 117 million kg 52,000 cars 481,520 cars Brookes & Barfoot, 2006

17 How much energy does it take to make biodiesel compared to petroleum diesel? It takes 1 litre of diesel to make: 4 litres of petroleum diesel 2.5 litres of biodiesel 1.5 litres of ethanol Biodiesel is a renewable fuel Income related to biodiesel production is spread amongst many sectors No engine modification is required

18 Greenhouse Gas Emissions 4 Dino- Diesel C02 Equivalent kg/litre Biodiesel (IPPC) Biodiesel (observed) Biodiesel (Zero Till) -1 Carbon Dioxide Nitrous Oxide Soil Carbon

19 2015 Strategy Innovate across the value chain Adapt quickly to change Focus on markets that place value on canola s specific attributes Build on our ability to contribute to improved consumer health and a better environment Continually monitor and measure performance

20 The Canola Industry Innovative Resilient Determined to Create Superior Value and a Healthier World