IAOM 2010 – South Africa

Baltic Region A New Origin for Quality Wheat

Cape Town 24/11/2010

COPENHAGEN MERCHANTS Baltic Grain & Feed CEREAL MERCHANTS / / / Bulk Terminal Region

•Total area under grains • 6 mln ha

• Combined grain production • 27.5 mln tn

• Total exports – 8.3 mln tn • Feed barley: 1.5 mln tn • Malting barley: 1.3 mln tn • Feed wheat: 1.0 mln tn • Milling wheat: 4.5 mln tn

COPENHAGEN MERCHANTS Baltic Grain & Feed CEREAL MERCHANTS Kalundborg / Fredericia / Aalborg / Grenaa Bulk Terminal

COPENHAGEN MERCHANTS Baltic Grain & Feed CEREAL MERCHANTS Kalundborg / Fredericia / Aalborg / Grenaa Bulk Terminal Quality - Denmark

. Low protein – 10% - 11% . Test weight >78 kg/hl . Moisture <14.5% . P/L appx. 0.6 – 0.8 . Denmark has 3 Panamax ports and 2 handy size ports

COPENHAGEN MERCHANTS Baltic Grain & Feed CEREAL MERCHANTS Kalundborg / Fredericia / Aalborg / Grenaa Bulk Terminal Production & Consumption

7000.0

6000.0

5000.0

4000.0

3000.0

2000.0

1000.0

0.0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 ProductionConsumption

COPENHAGEN MERCHANTS Baltic Grain & Feed CEREAL MERCHANTS Kalundborg / Fredericia / Aalborg / Grenaa Bulk Terminal & Finland

COPENHAGEN MERCHANTS Baltic Grain & Feed CEREAL MERCHANTS Kalundborg / Fredericia / Aalborg / Grenaa Bulk Terminal Wheat – Sweden & Finland

. Sweden appx 50.% spring wheat, Finland appx. 95% spring wheat; . Test weight > 80 kg/hl . Protein content: 11,5% - 14,5% . Moisture 12.5% - 13.5% . P/L 0.2 – 0.4 . Very high W, hagberg & gluten . Sweden has 4 panamax ports . Finland has 1 panamax port and 2 handy – sized ports for grain

COPENHAGEN MERCHANTS Baltic Grain & Feed CEREAL MERCHANTS Kalundborg / Fredericia / Aalborg / Grenaa Bulk Terminal Production & Consumption

COPENHAGEN MERCHANTS Baltic Grain & Feed CEREAL MERCHANTS Kalundborg / Fredericia / Aalborg / Grenaa Bulk Terminal Poland

COPENHAGEN MERCHANTS Baltic Grain & Feed CEREAL MERCHANTS Kalundborg / Fredericia / Aalborg / Grenaa Bulk Terminal Quality - Poland

. Good alternative to German wheat, similar characteristics. . Protein – 13% - 15% . Test weight >77 kg/hl . Moisture appx. 14%; . Poland has 1 panamax port and 1 handy size port

COPENHAGEN MERCHANTS Baltic Grain & Feed CEREAL MERCHANTS Kalundborg / Fredericia / Aalborg / Grenaa Bulk Terminal Production & Consumption

12000.0

10000.0

8000.0

6000.0

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2000.0

0.0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Production Consumption

COPENHAGEN MERCHANTS Baltic Grain & Feed CEREAL MERCHANTS Kalundborg / Fredericia / Aalborg / Grenaa Bulk Terminal Estonia, Latvia & Lithuania

COPENHAGEN MERCHANTS Baltic Grain & Feed CEREAL MERCHANTS Kalundborg / Fredericia / Aalborg / Grenaa Bulk Terminal Quality – The Baltics

. Spring wheat ratio: Estonia 70%, Latvia 40%, Lithuania 20% . Similar characteristics to German wheat. Quality: Moisture 12.5% - 13.5%; Protein 12.5% - 15%; Test weight abt 80 kg/hl, good W, hagberg and gluten. . Estonia ha 2 panamax ports, Latvia 1 panamax port and 1 handy sized port and Lithuania 1 panamax port

COPENHAGEN MERCHANTS Baltic Grain & Feed CEREAL MERCHANTS Kalundborg / Fredericia / Aalborg / Grenaa Bulk Terminal Production & Consumption

4000.000

3500.000

3000.000

2500.000

2000.000

1500.000

1000.000

500.000

0.000 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Production Consumption

COPENHAGEN MERCHANTS Baltic Grain & Feed CEREAL MERCHANTS Kalundborg / Fredericia / Aalborg / Grenaa Bulk Terminal Baltic Sea wheats by alveograph

Latvia Sweden Poland

Lithuania Denmark Finland

COPENHAGEN MERCHANTS Baltic Grain & Feed CEREAL MERCHANTS Kalundborg / Fredericia / Aalborg / Grenaa Bulk Terminal Destinations

. In EU: – Spain, The Netherlands, Belgium, Italy . Outside EU: – Turkey, Libya, Syria, Tunisia, Morocco, Senegal, Mauritania, South Africa, Tanzania, Ethiopia, Israel, Jordan, Saudi Arabia, Indonesia.

COPENHAGEN MERCHANTS Baltic Grain & Feed CEREAL MERCHANTS Kalundborg / Fredericia / Aalborg / Grenaa Bulk Terminal Perspectives

. We expect the Baltic States exports to continue increasing

. We also also expect to see growth in Russian/Kazakh exports via the Baltic Sea.

. Due to the increasing demand in Southeast Asia and the Middle East we will likely see average shipment sizes increase.

. Barley production is in downward trend, oilseeds production is at maximum – the increase in production will be mostly from the wheat.

COPENHAGEN MERCHANTS Baltic Grain & Feed CEREAL MERCHANTS Kalundborg / Fredericia / Aalborg / Grenaa Bulk Terminal Copenhagen Merchants Group

COPENHAGEN MERCHANTS Baltic Grain & Feed CEREAL MERCHANTS Kalundborg / Fredericia / Aalborg / Grenaa Bulk Terminal Thank You

Indrek Aigro Copenhagen Merchants T: +4522135316 E: [email protected]

COPENHAGEN MERCHANTS Baltic Grain & Feed CEREAL MERCHANTS Kalundborg / Fredericia / Aalborg / Grenaa Bulk Terminal