Corporate Responses to Global Development and Nutritional Needs

Transcription

1 Corporate Responses to Global Development and Nutritional Needs William Nelson, president, CHS Foundation and vice president, CHS Corporate Citizenship Washington D.C., March 5, 2012

2 Who Is CHS CHS is a leading farmerowned cooperative providing essential energy, grains and foods resources to businesses and consumers around the world

3 About CHS Serves producers and consumers throughout the United States Supplies grain and other products to customers in 60 countries About 9,000 employees worldwide

4 Ownership 62,000 individual producers (through company-owned facilities) Voting members 1,100 locally owned cooperatives serving about 300,000 producers Voting members 10,000 preferred stockholders (CHSCP on NASDAQ Exchange) Non-voting owners

5 CHS Business Operations

6 CHS System Locations Each dot represents a CHS location, member company or business affiliation

7 Recent Highlights Fiscal 2011 net income $961.4 million Fiscal 2011 net revenues $36.9 billion Number 103 on 2011 Fortune 500 listing Nine years as Fortune Most Admired company

8 A History of Success -- Earnings $ in millions $961.4 million CHS Inc.

9 Creating Value for Owners Revenues $ in billions $36.9 billion CHS Inc.

10 Creating Value for Owners Cash Returns $ in millions $421 million CHS Inc. $2.5 billion!

11 Global Grain Marketing North America s third largest grain exporter Markets more than one billion bushels of grain annually Sells grain domestically and in 60 countries Grain offices in Argentina, Brazil, Bulgaria, Canada, China, Hungary, Romania, Russia, Serbia, Singapore, South Korea, Spain, Switzerland and Ukraine Uniquely positioned to source and handle specialty and IP grains

12 Oilseed Processing Operates four soybean processing plants: Iowa, southern Minnesota and Ashdod Israel, crushing over 300,000 bushels daily Refines the equivalent of 120 million bushels annually about 3 million acres of beans -- into vegetable oil, supplying about 6 percent of the total U.S. consumption and 35% of Israel consumption Produces 7,000 metric tonnes of soy meal daily for hog, poultry and dairy operations

13 13 CHS acquires Solbar

14 Soy Food and Ingredients Soy Flour Mankato, Minn.; Creston, Iowa Soy Protein (textured) Hutchinson, Kansas; Ashdod, Israel; Ningbo, China Soy Concentrates Ashdod, Israel; Ningbo, China Soy Isolates Ashdod, Israel; South Sioux City, Nebraska. Soy Isoflavones Ashdod, Israel

15 CHS Stewardship

16 CHS Stewardship CHS Foundation Developing the next generation University Partnerships Rural Youth Leadership Development Cooperative Education Agricultural Health and Farm Safety Returning Value to Rural America CHS Corporate Citizenship Rural leaders, members and employees University Relations Employee Engagement Disaster Relief Organization Memberships CHS Inc.

17 CHS Corporate Citizenship Developing the next generation of rural leaders, members and employees and giving back to communities where we do business University Relations Projects that represent a new visibility opportunity for CHS where we have significant presence Employee Engagement Various projects including United Way giving campaign and employee volunteerism Disaster Relief Assist communities in rebuilding and recovery efforts following a disaster Organization Memberships Dues for state and regional cooperative councils and companywide industry and trade association memberships CHS Inc.

18 CHS Foundation Priorities Committed to investing in the future of rural America, agriculture and cooperative business through education and leadership development. University Partnerships and Scholarships Rural Youth Leadership Development Cooperative Education Agricultural and Farm Safety Returning Value to Rural America CHS Inc.

19 Next steps.where do we go from here?

20 Where do we go from here? A producer-owned business Markets grain for producers Supplies energy to producers Stewardship as a core value A Foundation and Corporate Giving Parallels to WISHH and the World Soy Foundation 20

21 Where do we go from here? International involvement models Commercial? Philanthropic (education, research)? Both Nutrition? Supply? Distribution? Production? All. Build off direction and momentum: Next generation (workforce and producers) Science-based education and extension (extension) Producer and consumer-owned business models Safety Environment, especially water Collaboration & Partnerships 21

22 Where do we go from here? Internationalizing our current Foundation programs Member of ACDI-VOCA and NCBA Tsunami relief through Cooperative Development Foundation (Japanese Co-ops and Education) Afghanistan wheat flour project for orphans and widows 135 th Agribusiness Development Team (ADT) project in Afghanistan (MN National Guard) 22

23 Teaching the Value of Cooperatives CHS assembled a blue-ribbon panel of cooperative development specialists Structure and function of agricultural cooperatives Cooperatives in other developing countries Steps for starting cooperatives Overview of Afghan cooperatives and cultural/environmental issues Challenges of starting agricultural cooperatives in Afghanistan 23

24 Recent funding highlights National Teach Ag Ed CHS has made the largest financial contribution ever to this campaign, which focuses on raising awareness for the need of more agricultural teachers in U.S. high schools Provides resources for those who wish to help promote the profession of agricultural education and for those interested in pursuing a career in agricultural education CHS Inc.

25 Recent funding highlights National Agriculture in the Classroom Grassroots program to help students gain a greater awareness of the role of agriculture in their lives. Dedicated to promoting ag literacy programs nationwide, providing a professional network for ag literacy leaders and promoting training of ag literacy professionals CHS Inc.

26 Recent funding highlights International projects Providing opportunities for students to learn, explore and discuss issues that are critical to the current and future health of the global food systems. Examples: International Food & Agribusiness Management Association s (IFAMA) conference in China Kansas State University s Grain and Feed Production, Processing and Utilization study abroad program in Germany and Switzerland Grain Foundation s International Collegiate Agriculture Leadership (I-CAL) program South Dakota State University s CHS Agribusiness Globalization Education program international experience in France Kansas Agriculture and Rural Leadership s program, which includes travel to Peru NCBA to support International Year of Cooperation initiatives 26

27 Per Pinstrup-Andersen this morning: Economic demand (consumer behavior) and production possibilities (producer behavior) not nutrition goals drive the food system. It is shaped by many factors and may be modified by the private and public sectors and civil society to represent nutrition goals. 27

28 Per Pinstrup-Andersen this morning: Food Costing We need to pay the true costs now of what we are doing to produce food. ( Shared Value ) We should not be asking future generations to bear the (increased) costs of food production because we don t want to pay for them ourselves. 28

29 Thank you! CHS Inc.