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
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
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
Thank You ! Soy 2020 Collaboration
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
(organizations represented on the Soy 2020 steering committee)
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
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
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
SOY 2020 SCENARIO PLANNING PROCESS
Thank You ! Scenario Planning Soy 2020 steering committee identified four potential industry scenarios based on technology adoption for soy versus other crops.
II I
III IV Off-Shore Migration Forward to the Past
Full Speed Ahead Shared Success Soybean Innovations
Other Crop Innovations
No Innovation Advantage for Other Crops
Other Crop Innovation Advantage
Soybean Innovation Advantage
Soybean Star
No Innovation Advantage
for Soybeans
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
Thank You ! Soy 2020 Indicators 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
Soy 2020 Indicator Tracking
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
Four rounds of indicator tracking, conducted every six months since March 2008, show a Shared Success scenario:
Soy 2020 Indicator Tracking Results of Rounds 1-6
SOYBEAN INDUSTRY INDEX
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
I. Full Speed Ahead II. Shared Success
IV. Forward to the Past III. Off Shore Migration
OTHER CROPS INNOVATION
SOY
BE
AN
S IN
NO
VA
TIO
N
Less
More
Less More
IV. Forward to the Past III. Off Shore Migration
OTHER CROPS INNOVATION
SOY
BE
AN
S IN
NO
VA
TIO
N
Less
More
Less More
Thank You ! Soy 2020 Strategies 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
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
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
Soy 2020 in Action
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
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
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.
Looking Ahead
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 e-mailing [email protected]
Thank You !