| GLG’s
Vertically-Integrated
Supply
Chain
“Seed
to
Shelf
Production” |
| |
| Step
One |
| R&D
Seed
&
Plant
Development |
| |
| Huinong
2
Patented
Seeds |
| |
 |
10%
higher
rebaudioside
A
content
than
the
previous
generation
(H1) |
|
The
H2
strain
also
generates
22%
more
leaf
per
acre |
|
GLG
has
upgraded
its
varieties
company
wide
and
has
utilized
Huinong
2
at
all
10
of
the
Company’s
growing
bases
in
China
for
the
2011
crop
season |
|
20%
greater
processing
efficiencies
expected |
|
100%
of
crop
expected
for
harvest
in
2011
has
been
planted
using
Huinong
2
seeds |
|
|
|
| Huinong
3
Patented
Seeds |
| |
|
76%
rebaudioside
A
content
in
the
leaf,
a
26%
increase
from
the
H1
strain |
|
Estimated
600kg
of
additional
stevia
leaves
harvested
per
acre,
a
46%
increase
over
H1,
which
improves
land
and
resource
utilization |
|
Estimated
40%
overall
leaf
cost
improvement
expected
as
a
direct
result
of
the
increased
Reb-A
content
and
increased
leaf
yield |
|
Greater
processing
efficiencies
expected |
|
On
track
for
use
in
2012/13 |
|
|
|
| All
improvements
to
GLG
proprietary
seed
strains
are
through
natural
selective
breeding
methods
and
are
non-GMO. |
| |
Step
Two
Stevia
Growth
and
Harvest |
|
|
| Secured
land
and
farmers
=
Secured
leaf
supply |
| |
|
Long-term
exclusive
agreements
in
three
of
China’s
largest
stevia
growing
areas: |
| |
|
Dongtai,
Jiangsu
Province
(10
years) |
|
Mingguang,
Anhui
Province
(10
years) |
|
Juancheng,
Shandong
Province
(20
years) |
|
|
GLG
is
the
only
company
allowed
to
grow
and
harvest
stevia
in
these
areas |
|
|
Agricultural
expansion
continues
and
planting
now
extends
into
10
provinces
in
China,
including
areas
in
Northeast
China
and
Northwest
China |
|
| |
| Secured
land
and
farmers
=
Secured
leaf
supply |
| |
|
Direct
seed-to-field
planting
(vs.
costly
intermediary
greenhouse
step
for
seedlings
and
multiple
transplantation
procedures
that
result
in
decreased
crop
survival
rate) |
|
Over
250,000
partner
farmers
under
contract |
|
|
Farmer
Support:
Team
leaders,
quality
control,
cultivation
techniques,
hands
on
training
and
education,
and
sustainability |
|
|
Strong
relationships
with
local
and
central
government
support |
|
|
|
| More
than
80%
of
the
world’s
stevia
supply
is
produced
in
China. |
|
| |
| |
| China
has
900
million
farmers.
Stevia
is
a
high
value
cash
crop,
and
increases
farmer
incomes,
strengthening
the
rural
economy.
Chinese
Government
policies
strongly
support
rural
economic
development
in
these
areas. |
| |
| Step
Three |
| Extraction
and
Refining |
|
Patented
high-grade
stevia
primary
extraction
(SPE) |
|
Able
to
refine
all
stevia
with
purity
levels
up
to
99%
(RA,
STV,
RC,
etc) |
|
Low
cost
production
processing |
|
 |
|
|
Annual
leaf
processing
capacity
in
excess
of
41,000
metric
tons.
All
sites
have
additional
land
available
for
expansion.
(Currently,
Runhai
campus
is
60
acres
and
Runyang
campus
is
80
acres) |
| |
|
Annual
high-grade
stevia
processing
capacity
of
3,000
metric
tons
(Phase
I
of
our
Runhao
campus
is
approximately
60
acres
with
access
to
a
total
of
215
acres
of
land
which
can
increase
capacity
up
to
10,000
metric tons
of
RA97,
and
Runde
campus
is
currently
70
acres) |
|
All
sites
have
received
third-party
certifications
on
GMP,
ISO,
HACCP,
HALAL,
and
Kosher |
| |
| |
|
|
| Leaf
Improvements
from
China
Common
Leaf
Through
GLG
Propriety
Strains |
| The
most
important
part
of
the
supply
chain
to
control
is
the
leaf. |
|
For
both
consistency
of
taste
in
a
stevia
extract
and
cost
of
stevia
extract |
|
Leaf
accounts
for
over
60%
of
the
cost
of
stevia
extract
products |
|
Our
patented
seeds
allow |
| |
|
ease
and
lower
cost
in
scaling
agriculture
vs.
seedling
approach |
|
consistency
in
the
taste
of
stevia
sweetener |
|
GLG
to
offer
sustainable
lower
pricing
in
the
industry |
|
|
| Leaf
Improvements
from
China
Common
Leaf
Through
GLG
Propriety
Strains |
|
To
produce
one
metric
ton
of
RA80,
the
approximate
required
amounts
of
different
varietal
leaves
are: |
|
 |
| |
| Our
Competitive
Advantage:
Leaf
Growing
Capacity |
| |
 |
