VCMx Presentation

Wednesday June 19, 2103

Kramer IMAX Boardroom Regina, Saskatchewan

What is

VCMx?

Value Chain Management Exchange

will facilitate the development and implementation

of a verified, internationally governed cash

commodity exchange for the trading of agriculture

commodities between qualified buyers sellers and

service providers.

Value Proposition:

Trust

Value Proposition:

Verification

Value Proposition:

Breaking

down barriers

Value Proposition:

Expansion

of Trade

Business model

• Multi-sided value chain • Verified cash physical product exchange • Value chain development • Value chain management

Corporate structure • Canadian incorporation -- VCMx Inc. • For-profit share corporation • Open industry share structure • Governed by VCMx Council / GAFTA Council London UK • Participant verification EDC Canada • Product verification approved by international VCMx

grading/agronomy members • Service verification by approved international VCMx service

providers

Trade platform

Trade platform • Multi-sided electronic trade platform • Real time/anonymous product and service price

discovery • Negotiable product/process attributes • Standard form GAFTA contracts • GAFTA arbitration

Trade interface

Agile development

• Project will start with 6 months of analysis

• Sprints (updates) released each month for

testing starting in 7th month

• Estimate between 24 and 36 monthly

releases

• Usable system with basic functionality by

12th release

Business Analyst Development Unit Testing User acceptance

testing

Sprint 1

Sprint 2 Sprint 1

Sprint 3 Sprint 2 Sprint 1

Sprint 4 Sprint 3 Sprint 2 Sprint 1

Sprint 5 + Fixes Sprint 4 Sprint 3 Sprint 2

Sprint 6 + Fixes Sprint 5 Sprint 4 Sprint 3

Agile development • The contents of each sprint planned as

development progresses

• Analysis, Development and Testing occurring in

parallel

Development team • Paul Burch – Project Manager / Business Analyst

• Mark Wileniec – Business Analyst

• Dean Holroyd – Application Architect

• Lee Melhorn – Technical Architect

• Alex Flegel – Programmer

• Jason Crump – Programmer

• Chad Frentz - Designer

Funding initiatives (public/private)

IRAP West

• Innovation and funding services customized to specific needs

Funding initiatives (public/private)

Western Economic Diversification

• Innovation • Business development • Community economic development

Funding initiatives (public/private)

Agriculture Canada Growing Forward 2

• $3 billion for five years • Innovation, competitiveness, market development

• Agri Innovation • Agri Competitiveness • Agri Marketing

Prototype implementation

VCMx addresses the major drivers pulling for change in the marketplace:

• Producers need to maximize product value -- there are no commodities.

• Buyers want traits that suit or match their production processes, which allows for

more margin potential.

• Officials must trace problems “from gate to plate”.

• Intermodal shipping service providers (truck, rail, ocean carriers,

container lessors) will adopt more effective use of their logistics assets and more environmentally-efficient use of fossil fuels to move products.

The industry needs better market coordination and business model

innovation

Thank you for your participation

Visual production by

Gerald Horne VCMx Communications Director

horne@shaw.ca