POET NUTRITION
POET, LLC Leading ethanol producer 1.7 Billion gallons 27 plants Fully integrated production system Privately held Family business Committed to technology BPX (raw starch hydrolysis) BFrac II Project Liberty - Cellulosic ethanol PAGE 2
BUSINESS MODEL POET Biomass Ethanol Marketing Risk Management POET Research Co-Product Marketing Plant Management POET Biorefining Design & Construction PAGE 3
MARKET SHARE LEADERS Source: RFA data and company estimates PAGE 4
U.S. DOMESTIC DDG USAGE (MT) PAGE 6
PRODUCTION VS. CONSUMPTION (MT) PAGE 7
DDGS EXPORTS BY REGION (MT) PAGE 8
WHERE AMERICA S CORN GOES PAGE 9
PRODUCT FOCUSED WEBSITE www.onlyonedakotagold.com Website supports the Dakota Gold brand and industry position Educates users on Dakota Gold and supports customer relationships Launched in May 2011 Only One Dakota Gold PAGE 10
DAKOTA GOLD BPX AS A FEED FOR POULTRY DR. ROBERT LOAR, II POET NUTRITION TECHNICAL SERVICES SIOUX FALLS, SD
OUTLINE What is Dakota Gold BPX? Why is it important? Dakota Gold composition Dakota Gold nutrient availability Dakota Gold and poultry performance Dakota Gold and diet formulation Why Is Dakota Gold BPX Special? PAGE 12
WHAT IS DAKOTA GOLD BPX? DR. ROBERT LOAR, II POET NUTRITION TECHNICAL SERVICES SIOUX FALLS, SD
Commodity Process PAGE 14
PAGE 15
DAKOTA GOLD PRODUCTS Dakota Gold BPX Premium Distillers Grains Uniform Particle Size High Palatability Consistent Nutrient Profile Higher Density Easier Pelleting Increased Flowability Recommended for All Species * Research proves Dakota Gold has a higher economic value versus conventionally produced DDGS. For more information please visit www.onlyonedakotagold.com PAGE 16
WHAT IS DAKOTA GOLD BPX DDGS Produced by patented BPX process No cook prior to fermentation Unique product Produced and marketed only by the POET system PAGE 17
WHY IS DDG/S (AND DAKOTA GOLD BPX) IMPORTANT? DR. ROBERT LOAR, II POET NUTRITION TECHNICAL SERVICES SIOUX FALLS, SD
PRODUCTION OF DDGS FROM U.S. ETHANOL BIOREFINERIES Million Metric Tons PAGE 19 Renewable Fuels Association
ENERGY IN DDG/S PAGE 20 *As Fed Basis
CP IN DDG/S PAGE 21 *As Fed Basis
AVAILABLE P IN DDG/S PAGE 22 *As Fed Basis
VALUE IN DDGS For poultry DDG/S has: 80% of the energy of corn and more than SBM 3 times the CP of corn and 2/3 the CP of SBM 8 times the available P of corn and 3 times that of SBM P is 75% Available in Dakota Gold DDGS Yet historically priced less than corn DDG/S has provided more opportunity for profitability of feeding non-ruminants more than any other feedstuff in recent years PAGE 23
DAKOTA GOLD COMPOSITION DR. ROBERT LOAR, II POET NUTRITION TECHNICAL SERVICES SIOUX FALLS, SD
WHAT IS IN A BUSHEL OF CORN 1 / 3 1 / 3 1 / 3 PAGE 25
COMPOSITION AND VARIABILITY OF DAKOTA GOLD Nutrient Average SD Protein 26.28 0.85 Crude Fat 10.19 0.82 ADF 9.15 1.37 NDF 23.89 1.52 Lysine 0.94 0.11 P 0.90 0.07 707 samples by wet chemistry from POET Biorefining plants from January - June, 2011 PAGE 26 *As Fed Basis
ADDITIONAL CHARACTERISTICS ph 4.0-4.5 Choline 2637 ppm Xanthophyll 20-40 ppm Recent analysis shows 20-30 ppm PAGE 27 *As Fed Basis
DAKOTA GOLD BPX NUTRIENT AVAILABILITY DR. ROBERT LOAR, II POET NUTRITION TECHNICAL SERVICES SIOUX FALLS, SD
ENERGY VALUE OF DDGS % of Corn Poultry TME 80 Swine ME 102 PAGE 29
AMINO ACID AVAILABILITY FOR POULTRY True Digestibility, % Dig. AA, % Lysine 75.71 Methionine 83.60 Tryptophan 86.23 Threonine 84 1.06 Valine 84 1.23 Average of multiple BPX plants PAGE 30 *As Fed Basis
VARIABILITY IN COLOR BATAL & DALE 1 Digestible LYS L* = 60.3 b* = 25.9 L* = 50.4 b* = 7.41 PAGE 31 1 PSA, 2006
DAKOTA GOLD BPX AND POULTRY PERFORMANCE DR. ROBERT LOAR, II POET NUTRITION TECHNICAL SERVICES SIOUX FALLS, SD
PERFORMANCE SLIDES In the 3 slides following: Each LINE represents one study done with Dakota Gold DDGS X-axis values represent DDGS inclusion in the ration Y-axis values represent performance as a percent of the control Corn and SBM control diet performance set at 100 Each slide represents a different performance parameter designated in slide title PAGE 33
DDG/S AND BROILER GAIN Effect on Inclusion Rate of DDG/S on Gain of Broilers and Turkeys 110 100 = performance of corn-soybean meal control 100 90 Gain, % of Control 80 70 60 50 0 5 10 15 20 25 30 PAGE 34 DDG/S, % of diet
DDG/S AND BROILER G:F 110 Effect of Inclusion Rate of DDG/S on Gain:Feed of Broilers and Turkeys 100 = performance of corn-soybean meal 100 90 % of Control 80 70 60 50 0 5 10 15 20 25 30 PAGE 35 DDG/S, % of diet
DDG/S AND EGG PRODUCTION Effect of Inclusion Rate of DDG/S on Egg Production of Layers 110 100 = performance of corn-soybean meal 100 90 % of Control 80 70 60 50 0 5 10 15 20 25 30 35 PAGE 36 DDG/S, % of diet
FORMULATING WITH DAKOTA GOLD BPX EVERYTHING SHOULD BE MADE AS SIMPLE AS POSSIBLE, BUT NOT ANY SIMPLER. - ALBERT EINSTEIN
SAMPLE DIETS BROILER GROWER Ingredient Sample 1 Sample 2 Corn 60.5 56.1 SBM 24.3 20.55 DDG/S 7.0 15.0 Protein 4.0 4.0 Fat 1.5 1.6 Limestone 0.95 1.05 Phosphate 0.35 0.20 Salt 0.30 0.27 Lysine 0.33 0.44 Methionine 0.27 0.27 Vit/TM 0.51 0.51 Total 100% Values rounded for presentation purposes so totals for each column may not add up to 100% exactly 100% PAGE 38
SAMPLE DIETS BROILER GROWER DDGS Content Ingredient 0% 30% Corn 63.7 38.7 SBM 28.9 22.1 DDGS - 30.0 Porcine MBM 2.5 2.5 Fat 1.90 3.88 Deflourinated P 1.37 0.73 Ca Carbonate 0.63 1.19 Vit./Min. Premix 0.25 0.25 Salt 0.22 0.12 DL-Methionine 0.21 Values rounded for 0.14 L-Lysine 0.18 presentation 0.26 purposes so totals Sacox 0.05 for each column 0.05 L-Threonine 0.05 may not add up to 0.03 PAGE 39 100% exactly
HOW WE USE DAKOTA GOLD BPX FOR POULTRY Replace energy (corn) and protein (SBM) Replace phosphate and/or phytase Replace choline Formulate on available amino acids Use more crystalline LYS and less MET Broiler up to 15% of diet Layers up to 25% of diet PAGE 40
WHY IS DAKOTA GOLD BPX SPECIAL?
WHAT S SO SPECIAL ABOUT DAKOTA GOLD BPX? Patented no cook process In-process specifications Most consistent Most researched Most analyzed Most accessible information PAGE 42
CONVENTIONAL OR Conventional L* 52 a* 11 b* 39 L* 51 a* 15 b* 44 PAGE 43 POET, 2010
SPECIFICATIONS FOR DAKOTA GOLD BPX Protein 25% Min. Fat 9.0% Min. Moisture 12.5% Max. Color 50 Hunter score Min. *All Export Tag Specifications* PAGE 44
COMPOSITION VARIABILITY Dakota Gold provides Consistency! Not always true industry wide: 17 DDGS samples from 6 different ethanol plants (Batal and Dale, 2006) Crude protein range: 23-30% Crude fat range: 2.5-10.6% TME n range: 2,490-3,190 kcal/kg Crude fiber range: 5.1-8.1% Lys. Digestibility range: 45.8-77.8% Only 8 samples tested for Lys. Digestibility PAGE 45
PLANT TO PLANT CONSISTENCY Lysine of Dakota Gold 1.2 1 0.8 % Lysine 0.6 0.4 0.2 0 ALE BIG BIN CAR CHA COR EMM GOW GRO HAN HUD JWL LAD LAK LEI MAC MIT POR PRE Plant PAGE 46
FEED CONSUMPTION BY SPECIES Industry 2005 Swine 20% POET Nutrition 2005 Poultry 5% Dairy 45% Beef 30% Industry 2010 POET Nutrition 2010 Swine 25% Beef 7% Poultry 41% Dairy 27% PAGE 47
BODY WEIGHT GAIN Trial 1101 Day -54 Grower Phase and Beyond (kg) PAGE 48 DDGS
FEED CONVERSION Day 54 Mortality corrected Trial 1101 PAGE 49 DDGS
BREAST YIELD, % Trial 1101 Day 54 PAGE 50 DDGS
WHAT S SO SPECIAL ABOUT DAKOTA GOLD BPX? Process Specifications Results Research Information Service Trust PAGE 51
THANK YOU FOR YOUR TIME AND ATTENTION DR. ROBERT LOAR, II POET NUTRITION TECHNICAL SERVICES SIOUX FALLS, SD