May_25_2016_Corporate_Presentation_-_reduced
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LACK OF INFRASTRUCTURE<br />
§ On-farm storage capacity ~15%<br />
§ Most farmers are price-takers<br />
at harvest and pay more for<br />
freight during peak season<br />
§ Significant growth in demand<br />
for grain storage and handling<br />
equipment<br />
ILLUSTRATIVE: SOYA PRODUCTION & LOGISTIC COST<br />
(US$/T)<br />
Soybean Brazil USA Difference<br />
Cost of Production 187 238 51<br />
Transport 97 26 71<br />
Subtotal 284 264 20<br />
Port 7 3 4<br />
Total 291 267 24<br />
§ Commercial infrastructure<br />
§ Unable to efficiently handle current crop production levels<br />
§ Transport to market costs significantly higher than ROW – inland<br />
distribution network required<br />
§ Recent change in legislation to address antiquated, inefficient port<br />
facilities<br />
22
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