Livestock Investment Opportunities Global Ag Investing Conference Singapore

Livestock Investment Opportunities Global Ag. Investing Conference Singapore 24 th- 25 th September 2014 David Sackett Managing Director, Growth Farms

Meat and milk are growing in both value and market share 2050 - US$5. 1 TRILLION Other 6% 2007 - US$2. 9 TRILLION Other 6% Vegetables and Fruit 37% Fish 7% Meals and Oils 8% Dairy 10% Fish 6% Meals and Oils 9% Vegetables and Fruit 40% Dairy 9% Cereals 12% Cereals 13% Meat 20% Meat 17% Source: ABARES, 2012

50 Fish meal/oil Vegetable meal Other food Fish Vegetable oils Dairy products Cereals Vegetables/fruit Meat Billion (2007 US$) Meat and dairy offer the biggest opportunities……. 250 200 150 100 2050 2007 0 Source: ABARES

White meat dominates volume but red meat commands a premium Value Production Cattle 21% Sheep 3% Pig 44% Cattle 33% Pig 38% Chicken 32% Source: FAOSTAT, 2013 Chicken 25% Sheep 4% Source: FAOSTAT, 2013

Key players in global red meat exports Sheep Meat Exporters Beef Exporters Other 18% Other 24% New Zealand 34% United Kingdom 12% Brazil 22% New Zealand 6% United States 14% Australia 30% India 21% Australia 19% Source: FAOSTAT, 2011 Source: USDA 2013

Increasing demand from China is under way…. . 1. 0 Million tonnes cwt 0. 8 0. 6 0. 4 0. 2 Net Difference -0. 6 US EU Mexico Korea Japan Iran Russia Saudi Arabia -0. 4 Venezuela -0. 2 KG & China 0. 0

Agriculture contributes to greenhouse gases Waste 3% Forestry 17% Energy Supply 26% Agriculture 14% Transport 13% Residential & Commercial 8% Industry 19% Source: IPCC, 2007

Greenhouse gas per kg of protein Kg CO 2 e/Kg protein produced 300 250 200 150 100 50 0 Beef Cattle Small milk ruminant meat milk Pork Chicken meat eggs Source: Gerber, 2013

Grain or grass to grow beef? 120% 100% 80% Grass fed 60% Grain fed 40% 20% 0% Brazil Australia United States Source: MLA, 2013

Must be a low cost producer

Key issues to consider • • Greenhouse gas emission Welfare Grain or grass to produce meat? Animal identification (electronic) • Beef compulsory in Aust • Sheep optional

Lamb has seen a large price increase

Good management is essential $45 $40 $35 $30 $25 Btm 20% $20 Average Top 20% $15 $10 $5 $0 Beef Lamb Source: Ag. Insights 2013

Opportunities • Sheep meat offers some great advantages • Countries with competitive advantages • Beef in Sth America, Australia • Sheep in Aust, NZ • • Premium product producers Low – moderate correlation with grains Aggregation of subscale farms Buy and manage well

Introduction to Growth Farms Australia Specialist Managers in Australian Agriculture Sep 2014

Growth Farms is an established agricultural asset management company: • Established in 1999 with an appropriate blend of farm management, commercial, legal and accounting experience • Has over $380 m under management, over $200 m since 2008 • Specialises in portfolio strategy, acquisition and management of Australian broad-acre agricultural investments • Works with a diverse client base including high net worth individuals, corporate and institutional investors from Australia, Asia and Europe • Has recently had first close of a Fund with a UK insurance company as the seed investor • Has a proven track record of value acquisitions and top quartile operating returns • Employs highly qualified operational management who are all experienced agricultural specialists covering a wide range of sectors

Assets under management are substantial and across diverse agricultural sectors: • $380 m and a total area of 105, 000 hectares - 150, 000 sheep - 14, 000 cattle - 21, 000 ha winter crop - Cropping Irrigation cereal, oilseed, other - 4, 000 ha summer crop - Cattle cotton, sugar, other Cropping dryland Sheep

Thirty farms under management, most in the higher rainfall areas of eastern Australia: Climate Zones Source: Growth Farms Australia, Australian Bureau of Meteorology http: //www. bom. gov. au/jsp/ncc/climate_averages/climate-classifications/index. jsp? maptype=kpngrp