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A new

generation of

canola oils for

food and feed

Lorin DeBonte

Cargill, Inc.

Minneapolis, MN, USA

Lorin DeBonte, Cargill, Inc.

A New Crop Brings Opportunities

“THE GLOBAL MARKETPLACE SHOULD PROVIDE MANY PROFITABLE OPPORTUNITIES

FOR CANOLA FARMERS AND PROCESSORS IN THE YEARS AHEAD” – GUILLAUME

BASTIAENS, VICE CHAIRMAN CARGILL, IN OPENING REMARKS AT THE OPENING OF

CARGILL’S NEW CANOLA PLANT AT CLAVET SASKATCHEWAN IN JULY 1996

• 1974 University of Manitoba produces the variety Tower with lower levels of erucic acid and

glucosinolates forever changes the oilseed world

• 1991 InterMountain Canola introduces Clear Valley 65 low linolenic canola oil for the frying

industry

• 1993 InterMountain Canola introduces Clear Valley 75 high oleic low linolenic canola oil for

the food ingredient industry

• 1994 Cargill acquires InterMountain Canola from Dupont and integrates it into it global crush

and refining infrastructure

• 1996 Cargill opens its crush plant in Clavet which has become the largest canola plant in the

world.

• 2008 Cargill supplies McDonald’s with Clear Valley 65 creating a trans free frying solution that

delivered the same great taste of its famous French Fries

2 Lorin DeBonte, Cargill, Inc. - Canola Industry Meeting 2017

In 25 YEARS FOOD INDUSTRY

REFORMULATED FRYING OILS TWICE

IN RESPONSE TO SCIENTIFIC DATA

3

ANIMAL FATS and PALM OIL

Partially Hydrogenated

Oils0 TRANS

>1980- SATURATED FAT IS

NOT HEALTHY

>1990 - LABEL SATURATED

FAT

>2000 – TRANS FAT IS

WORSE THAN SATURATED

>2003 –LABEL TRANS FAT

>2018 – PHO IS NO LONGER

GRAS

Lorin DeBonte, Cargill, Inc. - Canola Industry Meeting 2017

Creating and Maximizing Consumer Value

Lorin DeBonte, Cargill, Inc. - Canola Industry Meeting 20174

HO Canola Penetration of Food Markets

Lorin DeBonte, Cargill, Inc. - Canola Industry Meeting 20175

Customers Demand More from

High Oleic Products

Grower Customers

• Higher returns

• Greater yields

• Simple program

Foodservice Oil Customers

• Extended fry life performance

• Improved nutritional profile

• International growth

Food Manufacturer Oil Customers

• Extended shelf life

• Improved nutritional profile

• International growth

Lorin DeBonte, Cargill, Inc. - Canola Industry Meeting 2017

In designing a new oil

know the customers use:

Frying Performance

7 Lorin DeBonte, Cargill, Inc. - Canola Industry Meeting 2017

Store Operations

Food

What Determines Performance?

Oil Type

8 Lorin DeBonte, Cargill, Inc. - Canola Industry Meeting 2017

FATS&OILS 101: Cheap frying oils are not the

most flavorful, economical or healthiest solution

9

Commodity Oils High Performance FRYING Oils

✓ HIGH OLEIC CANOLA

✓ HIGH OLEIC

SUNFLOWER

✓ PALM OLEIN

✓ SUNFLOWER

✓ CANOLA

✓ CORN

✓ SOY

Lorin DeBonte, Cargill, Inc. - Canola Industry Meeting 2017

New Oil Starts with:

What are Consumers Thinking?

10

Lorin DeBonte, Cargill, Inc. - Canola Industry Meeting 2017

11

R&D Begins Knowing the Consumer

Understanding consumer awareness and their stated

behaviors were of strong interest to our edible oil

teams within Cargill. This research provides:

• A year over year measurement of consumer awareness, perceptions,

and stated behaviors around certain types of oils used in packaged

foods.

• A measurement of how different demographic groups differ in their

oil attitudes and usage.

• An indication of how perceptions of oils have changed from the

previous year.

“How likely are you to check a

package for the following claims

related to the amount or type of

oil in a packaged food?”“To what extent do you pay attention

to the type of oil or amount of fat in

each of the following food categories

before you choose to purchase a

particular packaged food?”

“How likely are you to check a

package for the following claims

related to the amount or type of

oil in a packaged food?”

33%

Lorin DeBonte, Cargill, Inc. - Canola Industry Meeting 2017

4.5 2.5 21 72

Cargill’s Low Saturate High Oleic Oil went

Commercial in 2017

Maintained linoleic acid (C18:2) for flavor development

Reduced α-linolenic acid (C18:3) to improve oxidative stability

LOWEST saturated fat content

4.5

7

11

13

15

16

19

27

0 5 10 15 20 25 30

LOW SAFA CANOLA

CANOLA OIL

SUNFLOWER OIL

CORN OIL

OLIVE OIL

SOYBEAN OIL

PEANUT OIL

COTTONSEED OILSATURATED FAT (%)

6

8

15

17 17

19

SOY CANOLA HOCAN HOSUN VISTIVE HOSOY

LOW SAT HOCAN

OSI (hr) at 110°C

12 Lorin DeBonte, Cargill, Inc. - Canola Industry Meeting 2017

We are not stopping at 4% saturates

CARGILL DRIVES CONTINUED REDUCTION IN SATURATED FATS

• Build on the current genetic base of 4.5% low saturate commercial frying oil

• Enable customers with a zero saturate claim

• Consistent with the AHA drive to replace saturated fatty with heathier fat

• Targeting 2.5% total saturates in canola

• To achieve this target we have identified new gene targets as illustrated in this Cargill application

Lorin DeBonte, Cargill, Inc. - Canola Industry Meeting 201713

Changing the world’s nutrition in

a sustainable way:

EPA DHA Canola for Aqua Feed

14 Lorin DeBonte, Cargill, Inc. - Canola Industry Meeting 2017

Alternative Sources of Omega-3

is Critical to Aquaculture

Lorin DeBonte, Cargill, Inc. - Canola Industry Meeting 2017

Overall Fish Oil Production Declines

16

0

0.5

1

1.5

2

2.5

3

3.5

4

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Peruvian Anchovy Quotas

North/1st North/2nd South

Me

tric

To

ns

of

An

ch

ovie

s

• Based on 25%

of total

biomass

• 67% juveniles

by weight (95%

by number)

Lorin DeBonte, Cargill, Inc. - Canola Industry Meeting 2017

Development of Omega-3 Oil and Supply

Genetic

Engineering

Deregu-

lation

Plant

BreedingSeed

Production

Contract

ProductionCrushing/

Refining

Fish

Studies

Product

Develop-

ment

Sales/

Distri-

bution

R&D began

in 2000

Global

deregulation

planned Trait

upload

underway

Cargill has

a global specialty

canola business

Cargill grows

> 1 myn acres of

specialty canola

Cargill operates

52 crush and

70 refining

facilities globally

Cargill operates

3 aqua nutrition

research centers

globally

Cargill is a leader

in the development

of high performance

fish feeds

Cargill is the

world’s largest

animal nutrition

company

Omega-3 Canola to Launch Soon

18

Omega-3 canola will drive

sustainability by

• reducing harvest pressure

on wild fish populations

• providing a rotational

alternative to growers in

the targeted production

area

• ensuring inexpensive,

nutritious and delicious

seafood for global

populationsOmega-3 canola in August, 2017

Lorin DeBonte, Cargill, Inc. - Canola Industry Meeting 2017

Fish Oil May be Optional for Aqua Feed

19

Feeding test conducted in Chile with identical levels of long chain

omega-3’s from either fish oil or omega-3 canola oil produced

comparable results.

Dolphin Video

Lorin DeBonte, Cargill, Inc. - Canola Industry Meeting 2017

25+ Years of Innovation in Canola

NO TRANS FAT, LOW SATURATED FAT, LONG SHELF LIFE, IN

FOOD AND NOW OMEGA-3 IN FEED

20

1991 Clear Valley® 65 High Oleic Canola

1993 Clear Valley® 75 High Oleic Canola

2010 Clear Valley® 80 High Oleic Canola

2017 Low Saturate High Oleic Canola

2020 EPA - DHA Canola

Cargill Footprint of Global Oil Assets

Lorin DeBonte, Cargill, Inc. - Canola Industry Meeting 2017