Good Grains International, Inc.

Market Capture

Market Capture Strategy

The Company's principal market is the edible oilseed market. This includes those customers who currently purchase soybean meal, soy oil, and soy fiber, as well as customers who purchase meal, soy oil, fiber and flour from any and all tradable food sources. Consequently, the Company's marketing strategy is to target customers of edible oilseed, who primarily purchase soybeans and soybean-based products. *It is important to note, that the Company is not seeking to establish a market niche, specialty market or commercial profile of any kind, as the demand for any and all oilseeds, including Sweet White Lupin's, is unsatisfiable. The demand for oilseeds from all sources by the world market far exceeds supply, and with the expectancy of a doubling of the human population in one to two decades, can only be expected to increase. Human dependency upon edible oilseeds for proteins, oils and their by-products, is unprecedented. The soybean market is by far the largest oilseed market in the world. The table below describes the world soybean market in 2000, by volume and by value.

Table 8

The World Soybean Market 2000

The Product	Volume - Millions of Metric Tons	Value - Millions Dollars (000,000)
Soybeans	138.2	$33,457
Soy meal	85.0	16,830
Soy oil	19.3	11,040
TOTAL	242.5	$61,327

*Internet - World wide soybean consumption 2000

As indicated above, the world- wide soybean market in 2000 was 61.327 billion dollars, 54% was in the form of soybeans and 27% and 19% in the form of soybean meal and soy oil respectively.

The Company will focus on the world trade market in soybeans, as its primary target. The following table shows the market, as a percentage of world soybean consumption, in 2000:

Table 9

Soybean World Trade Market as % of World Soybean Consumption in 2000

Soybean Product	World Consumption Millions of Metric Tons	World Trade Market Millions of Metric Tons	% of World Consumption
Soybeans	138.2	33.0	24%
Soy Meal	85.0	30.6	36%
Soybean Oil	19.3	6.9	36%
Total	242.5	70.5	29%

As indicated above, the world trade market for soybeans and soybean-based products was 29% of worldwide consumption and the second largest market for soybeans and soybean-based products. The largest was the U.S. domestic market.

As a secondary strategy, the Company will also enter the U.S. domestic soybean market. The U.S. domestic market is the largest market for soybeans and soybean products. Table 10 summarizes the U.S. domestic soybean market as a percent of world consumption of soybean-based products in 2000.

Table 10

U.S. Domestic Market as a Percent of World Soybean Consumption in 2000

Soybean Product	World Consumption Millions of Metric Tons	U.S. Domestic Market Millions of Metric Tons	% of World Consumption
Soybeans	138.2	41.8	30.0%
Soy Meal	85.0	24.4	28.5%
Soybean Oil	19.3	5.5	28.9%
Total	242.5	71.7	29.6%

As indicated above, the difference in size between these two markets was 1/2 of 1% in 2000. Together however, these two markets compose 60% of world soybean and soybean product consumption. The table below summarizes the market value of these two largest markets in 2000.

Table 11

Values of U.S. Domestic and World Trade Markets in 2000

Soybean Product	U.S. Domestic - Market (Millions of Dollars)	World Trade Market (Millions of Dollars)
Soybeans	$10,116	$ 7,986
Soy Meal	4,831	6,065
Soybean Oil	3,192	3,947
Total	$18,139	$17,998

As indicated, the respective market sizes for the U.S. domestic and the world trade market were 18.1 billion and 18.0 billion respectively for a total of 36.1 billion dollars.