Imperative for Ag-Food Innovation: BioSTL Approach

Novel public-private partnership - uniquely convened – deep community engagement

Revitalizing Rural Communities

Bridging the Urban-Rural Divide

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 Agenda
• BioSTL Overview & St. Louis Ag-Food Powerhouse
• Ag-Food 2030 – Imperative for Ag-Food Innovation
• Case studies/examples of Agtech innovation
• Challenges facing the Ag-Food industry
• Rebuilding social license with consumers
• Changing the trust paradigm with farmers
• Building a new pathway for bringing innovation to farmers

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 Transforming the St. Louis economy based on a foundation of innovation and
global connectedness

3 | Imperative for Ag-Food Innovation BioSTL Approach

 BioSTL: Built Ag-Food-Healthcare Innovation Ecosystem
through unique public-private partnership
Universities- Research Partners
Corporations
Venture
Capital

Public Innovation
Policy Startups Districts

STEM
Workforce

Government & Foundation Partners

Wells Fargo
Foundation

4 | BioSTL & GlobalSTL

Imperative Overview
for Ag-Food Innovation BioSTL Approach
 St. Louis - Midwest – An Ag-Food Powerhouse

GlobalSTL – Building a magnet to attract cutting edge Ag-food

innovation to our region

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 St. Louis AgTech-Food Ecosystem
Research Partners
Collaborators / Core Facilities / Innovation
Corporate Strategic Field Trials Communities
Partners Danforth Plant Science Center Incubators
Product validators, First Customers & University of Missouri – Fisher Delta
Research Center Columbia, BRDG Park/Helix
Potential Acquisition College of Agriculture Cortex/CIC
Bayer KWS Bunge Ag Idea T-REX
Nestle-Purina Novus
AB Mauri/British Foods
AB InBev Panera
Post Foods
DuPont Nutrition & Health
 ICL Industry Specific
Investors
Assets Producers
Monsanto Growth Ventures
Lewis & Clark –Ag Fund Ag Showcase
Connecting producers
BioGenerator MTC National/MO Corn/Soy Growers
with global innovation
Cultivation Capital Assoc.
Prolog Arch Angels Agri Business Club Early Adopter Grower
Advantage Capital MFA Innovation Community
Yield Lab Accelerator (EAGIC)
•iSelect

6 | Imperative for Ag-Food Innovation BioSTL Approach

 GlobalSTL is convening and leveraging our region’s massive Ag-Food buying power

Using buying power magnet, we are

connecting international companies to our
region’s Ag-Food orgs

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 GlobalSTL Results Since May 2014 Launch
• 18 Companies Announced St. Louis Presence Israel Argentina Ireland

• $108 Million in investment & revenues and 215 direct and indirect jobs created
• Built global innovation sourcing platform across 12 countries
• Health Care India Netherlands Brazil

o 44 companies are under review, pilot, scaling with regional HC companies/hospitals

• Ag-Food Tech
o 7 top Agtech companies setup US HQ in St. Louis
China Sweden France
o 15 Ag-Foodtech companies are under review
• Taken and hosted over 15 international innovation focused delegations
o Built deep connections and changed STL brand with target communities

UK Singapore Denmark

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 St. Louis: AgTech Powerhouse - “Plant Engineering Mecca”

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 Agriculture 2030

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 From 1960-2010, global population more than doubled

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 How was the last “Global Food Challenge” addressed?

USING MORE DEVELOPING MORE

FERTILIZER IRRIGATION
BY FARMING
MORE LAND
(361 MM HA)

REDUCING POST-
HARVEST WASTE

REDUCING PEST
DAMAGE AND BREEDING HIGHER
LOSSES YIELDING CROPS

Plus integration into increasingly efficient agronomic or horticultural systems

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 Productivity Miracle

Resources Per Bushel of Corn

40% Less Land

60% Less Erosion

1980 – 2011

50% Less Water

40% Less Energy

35% Less Greenhouse Gases

Source: USDA/ERS

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 WITHOUT INCREASED YIELDS,

5.5 TIMES AS
MUCH LAND
EXPANSION
WOULD HAVE BEEN
NEEDED
Innovations can reduce the
pressure for land-use-change

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 Global Population Growth

7B 9B
2015 2050

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 Increasing yields is not enough. How matters?

GOALS FOR AN “EVER-GREEN” REVOLUTION

• Food Production: increase total food production by 70% by 2050
• Climate: turn global agriculture from a net carbon source to carbon sink
• Nitrogen: reduce yearly atmospheric N2 converted to fertilizer by 75%
• Water: keep global consumption of freshwater below 4000 km3/year.
Current consumption is 2600 km3/year, leaving 1400 km3 remaining.
• Land Use: cropland can only expand from 12% to 15% of Earth’s surface

Source: “The Quadruple Squeeze: Defining the safe operating space for freshwater use to achieve a triply green revolution in the
Anthropocene,” Rockstrom & Karlberg, Royal Swedish Academy of Science 2010. S. Dutia Kauffman Report

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 How many and who will remain do the farming?

Source: SAM “Harvesting Opportunities for a Sustainable Food Supply”; S. Dutia Kauffman Report

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 WHY NOW MATTERS
OPPORTUNITY

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19 | Imperative for Ag-Food Innovation BioSTL Approach 19
 Case Studies

20 20
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 OUR PHILOSOPHY & VISION
Leverage a biological process at the point of production to
recycle the manure into organic protein and fertilizer and
scale this to handle the World’s manure.

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 OUR 7-STEP CLOSED LOOP PROCESS
2 3 4
1

7 6 5

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 Future of Farming

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 Future of Farming

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 Covercress

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 Case Studies - Covercress

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 Trace Genomics

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 Case Studies – Trace Genomics

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 TerraSentia

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 Case Studies - TerraSentia

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 SkyX

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 Case Studies - SkyX

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 Genetic Engineering

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 Case Studies – Genetic Engineering

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 Early Adopter Grower Innovation Community (EAGIC)
New Path to Bringing Innovation to Growers
Revitalizing Rural Communities
Bridging Urban-Rural Divide
Funders Partners

Wells Fargo
Foundation

35 | Imperative for Ag-Food Innovation BioSTL Approach

 Grower’s innovation pathway - Today
Today
Overwhelmed with innovation
Coops/
Retailers Equip.
Input
suppliers Hold the risk bag
Companies

Long time horizon to scale

Growers
Receivers of Innovation
Limits investor interest

Processors Startups
USDA; Reduces Grower
Land Grant Productivity
Univ.
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 Creating a new path to bring innovation to Midwest producers
Today New Path

Global Innovation
Coops/ Equip. sourced to meet
Input Retailers suppliers producer needs
Companies

Early Adopters
Producers Drivers of innovation
Receivers of Innovation

Processors Growers
USDA; Startups
Land Grant
Univ.

37 | Imperative for Ag-Food Innovation BioSTL Approach

 EAGIC: Bringing Competitive Advantage to Midwest Growers and Revitalizing our Rural Communities:
Changing the trust paradigm

Early
Adopter
Innovation Grower
Deployment Innovation
Community
(EAGIC)

EAGIC:
• Growers as drivers of innovation
• Magnet for grower-centric global innovation
• Rigorous & transparent innovation evaluation
Midwest Growers
• Hire local talent to scale innovation
• Shrinking the time to scale & impact

38 | Imperative for Ag-Food Innovation BioSTL Approach

 Creating, Building & Investing in Startups

Portfolio companies
have raised

$ 845M
• Invested $22 million in 79 high-growth ventures
• Shapes business and IP strategy
• Recruits industry-seasoned management
BioGenerator’s investment leveraged • 170 Global Venture and Strategic investors have

38 to 1 invested in BioGenerator companies

39 | Imperative for Ag-Food Innovation BioSTL Approach

 BioSTL- Most prolific creator of startups in Biosciences in St. Louis

• Biosciences makes up 74%

of all STL investments

• BioGenerator deals make up

87% of bioscience

Data from PitchBook. For select BioGenerator companies, additional data added where available

40 | Imperative for Ag-Food Innovation BioSTL Approach

 St. Louis Ag/Food Organizations

CROP SCIENCE WORLD’S LARGEST BREWER

~$16.5 Billion in Revenues One of the Biggest Consumer Products Companies

WORLD’S SECOND LARGEST PET FOOD CO. ANIMAL HEALTH & NUTRITION
$11.2 Billion in Revenue $1.2B in Revenue, operating in 90+ countries

Nutrition and Health Division in St. Louis WORLD LEADING RESEARCH

Largest Plant Science Research Center

41 | Imperative for Ag-Food Innovation BioSTL Approach

 We all need to eat.

And yet, over

800 Million
don’t have enough food today
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 40%
LAND
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 Agriculture uses That Leaves 30% for

70%
Everything Else:

Drinking Water
Water for Cooking
of water worldwide. Water for Industry

AGRICULTURE TAKES A
MASSIVE TOLL ON WATER SUPPLY
The agriculture industry consumes the majority of freshwater, an increasingly
scarce resource in many geographies. CBInsights

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 70%
ARAL SEA
TODAY
1973

WATER
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 25%
Greenhouse gas emissions
from agriculture and
deforestation

CLIMATE
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 CAN AGRICULTURE
SAVE THE PLANET

BEFORE IT DESTROYS IT?

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 Rising global demand for crops AND declining arable land per capita

Source: IHS Global Insights, Agriculture Division; S. Dutia Kauffman Report

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 Climate change - the big equalizer?

Source: UN FAO “World Agriculture Towards 2030/2050: The 2012 Revision”; S. Dutia Kauffman Report

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 Animal protein diets are a challenge multiplier

Source: SAM “Harvesting Opportunities for a Sustainable Food Supply”; S. Dutia Kauffman Report

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 AGRICULTURE MUST
SAVE THE PLANET

AND FEED ITS INHABITANTS

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 TRENDS
THAT WILL
SHAPE
CROP
FARMING
THROUGH
2030

Sources: BCG interviews with a panel of farmers in France, Germany, Poland, and the UK; interviews with industry experts; analysis of
approximately 16,000 Derwent World Patent Index patent families registered from 2010 through 2014; BCG analysis.

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 Top trends – Affecting Farming Practices & Structures

Source: BCG interviews with farmers in France, Germany, Poland, and the U.K.

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 Agriculture is one of the least
digitized sectors.

Good news?

CBInsights — McKinsey

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 The POC of the Ag 2030 is here – adoption route is unknown

Source: “Precision Planting/Monsanto Field Scripts program,” Precision Planting 2012.

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