Agri-Technology : The New Wave Dave Smardon

QuickTime and aNone decompressorare needed to see this picture.Agri-Technology : The New WaveDave SmardonGrowing the MarginsApril 3, 2008

QuickTime and aNone decompressorare needed to see this picture.BioEnterprise• Building and growing Ag-Bio businesses !• Focused on Innovation and Commercialization• Funded under the APF

BioEnterprise CorporationWhat is BioEnterprise ?BioEnterprise is a Commercialization Agent!Commercialization: from the word “commerce”;to apply business methods chiefly for financialgain or profit.Agent: an instrument or means by which a guidingintelligence achieves a result

Commercialization AgentFinancial Expertise• Cost Management• Product Margins• Path to Profit / ROI• Revenue streams• Delivered via BioEnterprise staffConsultants, the BioEnterpriseGlobal NetworksTechnology Assessment• Uniqueness / “Disruptivity”• Manufacturability• Competitive Barriers• IP Protection• Delivered via BioEnterprise staffor via Consultants, Mentors, AngelsAnd Technology ProfessionalsManagement / Advisors• Scientific Advisors• Augmenting / support of management• Establishment of BoardBioEnterpriseCommercializationAgentInvestment $• Angels / Angel Groups• Strategic Partners• Venture Capital• Government ProgramsBusiness Plansand Strategy• BPBP Development• Critique / Modification• Reality Check Program• Delivered via BioEnterprise staffor via Consultants, Mentors, Angelsand ProfessionalsMentorship Coaching• Via BioEnterprise staff or byBusiness Leaders, Semi retirees,Successful Entrepreneurs,Angels

Where Does Ag-InnovationOccur ?• In corporations - sometimes but less and less‣ Too expensive to do internally• Research institutions / universities‣ But science does NOT equal innovation‣ Science can lead to innovation• The vast majority = On The Farm !

Who Drives Ag-Innovation ?• Corporation management - Acquisitions• Researchers & scientists - Sometimes• Driven by those in the trenches !• Farmers / Producers = Entrepreneurs• Consumers

BioMass Pellet Plant‣ Three producers in S. Ontario get together to establish aBioMass Pellet Fuel operation‣ Target market is initially - Greenhouse growersSlide 16‣ Feedstock sources flexibile – waste wood, biomass fuel crops• Grasses – Switchgrass, , Miscanthus, Canary Grass• Woody crops – Willow, Hybrid Poplar, Black LocustBenefits:• Alternative low production cost crops• Significantly lower energy costs for Greenhouses• Global applicability

Portable Bio-Diesel‣ Bio-diesel processing equipment - unique offering‣ Scaled for on-farm production‣ Designed for ASTM Slide 1816 standards production‣ Small crusher available for producing oil‣ Delivers batch process for farmers to produce 200Lto 1500L of Bio-diesel annuallyBenefits:• Low cost entry into self-sufficiency sufficiency for producers• On-farm processing• Lowers operational costs for producers• Global applicability

Innovations AboundOrganizationBiomass Energy Systems (Vidir Biomass)BoldtWood EnterpriseBio BalanceBioForest TechnologiesCanadian BiofuelCARESCerto-LabsCSR PlusCWRDiabetic DelightEarthfoam CanadaEco- Habitat Agri ServicesCreekline EdamameEEC EnergyEggshell ResourcesForest Bioproducts IncFractecFreeman FarmsGenopod Inc.GangaGen Life SciencesGAP-CGlass AlliumGlobal ToxGreen Energy FuelsGreen CircleGolden EBMHearst BiocomHarstersLocationMorris, MBNorth BaySmith FallsSault St. MarieChathamRidgetownTorontoTorontoGrand ValleyTorontoBellevilleGrimsbyGuelphThunder BayThornhillSault St MarieGuelphMeafordPeterboroughOttawaGuelphGuelphGuelphRichards LandingSault Ste. MarieToronto / Port DoverHearstDundas

Innovations AboundHydrocor Inc.Jiangxi Peako Biomass Energy Co. LtdKeresturi FarmsLittle JohnLa BrichettaLa Maison VerteLifewell Corp.Lucknow WindfarmsMaxSoyMikro-TekNeoVentures Biotechnology IncNott FarmsOntario Bean Producers Marketing BoardPurification Research Technologies IncPerformance PlantsPersall NaturalsRenewable Energy VehiclesReal Tech Inc.Retrievall IncReWorksREO Energy GroupSWEETechs CorporationTerako Industries IncUofT- Centre for Bio-composites and Biomaterials ProcessingVinifera for LifeVitabarsWeather Innovations IncWellington PolymerLucanHong KongScotland OntarioTimminsItalyHearstGuelphLucknowMarkhamTimminsLondonClintonLondonGuelphKingston locationWaterfordSault Ste MarieWhitbyBrantfordTorontoParisNiagara RegionGeorgetownTorontoJordonKitchener/WaterlooRidgetownChatham

The Confluence of SectorsNew AgriculturalInnovationFood Technology, Industrial Bio-products,Commercial bio-products, Nutraceuticals and Functional Foods, AlternativeEnergy, Agri-Health, Agri-waste ManagementFoodHealthcare Energy EnvironmentIndustrial

The New WaveAg-Biotech Drivers “Integrated Innovation” between Agriculture andEnergy, Healthcare, Environment and Food Meets the increasing public demand for “greener”,“cleaner”, “healthier” products Ag-related business opportunities have the marketpotential to surpass Medical Biotech Markets, whichhave dominated both corporate and investors’ mindsets Drivers of Broad Integrated Mega-Value Creationfrom Farm Gate to the Consumer

Agriculture and Ag-BioBio-Technology will contribute to resolving the FourCritical Challenges Facing the the Rest of the World !Ag-BioEnergyNew renewable/sustainablenon-oil based BioFuelsBioMaterialsNew renewable/sustainablematerialsBioEnvironmentReduce the impact ofglobal warming/GHGBioHealthPrescriptive “Wellness”focus on nutrition/healthThe New WaveFood TechnologyIndustrial bio-productsCommercial bio-productsForestry bio-productsNutraceuticalsAlternative EnergyAgri-HealthAgri-waste Management

How Does Ag-Innovation get toMarket ?• MOST OF THE TIME ………..IT DOESN’T• WHY?‣ There are no investment programs designed tocommercialize agricultural innovation.‣ There is no capital available to early stage ag-biobusinesses

Path To CommercializationThere is no lack of R & D monies. But what happens when R & D is completed?Pre-commercializationPhasesCommercializationPhaseConceptApplied ResearchProof of ConceptProduct DevelopmentOntario Centres of ExcellenceApplicable to Universities and Industry / Private Sector research projects(AFM Net)Universities OnlyAccelerator Matching Private Sector $Proof of Principle - ORCPUniversities OnlySTDC Matching Private Sector $NSERCUniversities OnlyIDF Matching Private Sector $Alternative Renewable FuelsAACLAIFApplicable to Universities and Industry / Private Sector research projectsDebt and Grants - CanadvanceUniversities Excluded - Pillar 1 & 2Universities onlyResearch FundingonlyPreCarnUniversities Excluded - IT Research onlyIRAPUniversities Excluded - Research only

Path To CommercializationThere is no lack of R & D monies. But what happens when R & D is completed?Pre-commercializationPhasesCommercializationPhasePost CommercializationPhaseProduct DevelopmentCommercializationPost CommercializationAg OpportunitiesAvrioCommercializationCapital• Ag-Opportunities is a start but…..

MandateBioEnterprise Proposal:To create an commercialization investment fundcalled the Agri-Innovation Fund that would focuson Ontario-basedag-innovations with national,multi-national and global applicability.An Agri-technology (Agri-Tech) Fund!

Key ObjectivesThis proposed fund has three major objectives:1. To accelerate the commercialization and growth ofagri-technologyand innovative new companies inOntario2. Increase / drive receptivity within the Canadianinvestment community for investments in agricultureand agri-technology3. To attract private sector investment from both domesticand foreign sources into the agri-technology sectorThese objectives are of equal importance, becausesuccessful commercialization of innovation will NOTtake place without private sector investment!

Government’s s Role1. Provide leadership in addressing critical gaps andobjectives2. Act as a catalyst to drive private sector participation3. Ensure the long-term benefits to Canadians and theagricultural industry4. Help establish and maintain our leadership position inglobal agriculture5. Deploy programs that build on existing investment ininfrastructure, organizations and people

The New WaveThe impact of “Integrated Ag-Bio Innovation” couldcreate waves of transformational change, that will havebroad impact: Global economy, Corporations/Governments worldwide, Citizens of the world (mega consumers), Wall Street, financial markets, and investorsInvestment opportunities will capitalize on ag-bio tech innovation,as the enabler of new sustainable industries and companiesAgBiotech is About to Move to Center Stageas a Major Investment Driver

The New WaveSO WHAT IS CHANGING FOR INVESTORS?Market potential – Large global demand-driven mega-marketsGrowth potential – High growth driven by large global marketneedsInnovative Technology – Agri-technology-based products for NEWintegrated marketsProfit Margins – High margins will be driven by IntegratedBusiness Models that link the farm gate to downstream industrialand consumer markets

QuickTime and aNone decompressorare needed to see this picture.“We believe that we are on the brink of a technology-drivenrestructuring of agriculture, one that will lead to a reshaping ofagriculture and agribusiness on a scope that is truly revolutionary.The driving force behind these changes is agriculturalbiotechnology…We expect to see a transformation in investors perceptions ofagricultural biotechnology – from an industry of promises to aproprietary growth industry – as well as agriculture – from amature industry to a new technology-based growth industry.”Sano Shimoda

QuickTime and aNone decompressorare needed to see this picture.The Future’s s so bright…Thank You !we gotta wear shades