2 world a global agri-business oat processing canola processing durum/pasta processing malt...
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WORLDWORLD
A Global Agri-Business A Global Agri-Business
Oat ProcessingCanola ProcessingDurum/Pasta ProcessingMalt ProcessingFeed Products
Oat ProcessingCanola ProcessingDurum/Pasta ProcessingMalt ProcessingFeed Products
Agri-Products Agri-Products ProcessingProcessingGrain Handling,
Marketing, Logistics
Grain Handling, Marketing, Logistics
FARMERFARMER
R&DCrop ProtectionFertilizerSeedAg EquipmentCredit FinancingAgronomy Services
R&DCrop ProtectionFertilizerSeedAg EquipmentCredit FinancingAgronomy Services
BarleyWheatOatsCanolaPeasSpecial Crops
BarleyWheatOatsCanolaPeasSpecial Crops
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Viterra’s Global FootprintViterra’s Global Footprint
Trading Hubs
Viterra’s network is comprised of origination, trading hubs, sales and distribution offices and processing assets.Viterra’s network is comprised of origination, trading hubs, sales and distribution offices and processing assets.
Origination and Sourcing Offices
Sales Offices/ Local Distributors
Global Asset Summary
Grain Terminals 192Export Terminals 14Agri-products facilities 273Processing 36
Access to global agricultural market intelligence from northern to southern hemisphere.
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Viterra’s Integrated Grain modelViterra’s Integrated Grain model
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VancouverGeneva
Singapore
Beijing
Adelaide (Australia)
TokyoRegina (Canada) Kiev (Ukraine)
KEY
Domestic Merchandising / Origination Office
International Trading Office Hub
Regional Office
NaplesMinneapolis (US)
Hamburg
New Delhi
Buy Process Transport Market
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USA OperationsUSA Operations
South Sioux City, NE
Dawn, TX
21st Century Grain
Hi-Pro
Grain Merchandising Office
Dakota Growers Pasta Company
Viterra Special Crops
Ray, ND
Dexter, NM
Clovis, NM
Comanche, TX
Cheyene, OK
Lubbock, TX
Friona, TX
Minneapolis, MNNew Hope, MN
Carrington, ND
Lewiston, ID
Grain Receival Site
Amarillo, TX
Northgate, ND
Cando, ND
Crystal City, ND
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Processing OverviewProcessing Overview
Feed Products – Feeding growing demand in North America for protein based products
Pasta Processing – 2nd largest integrated durum miller and 3rd largest manufacturer and marketer of dry pasta products In North America
Oat & Specialty Grain Milling – Premier oat miller with plants in Canada and the U.S. serving leading North American branded food companies
Malt – 43% ownership of Prairie Malt Limited; eight malt plants in Australia
Canola Processing – One plant in Canada; one new build in China
Feed Products – Feeding growing demand in North America for protein based products
Pasta Processing – 2nd largest integrated durum miller and 3rd largest manufacturer and marketer of dry pasta products In North America
Oat & Specialty Grain Milling – Premier oat miller with plants in Canada and the U.S. serving leading North American branded food companies
Malt – 43% ownership of Prairie Malt Limited; eight malt plants in Australia
Canola Processing – One plant in Canada; one new build in China
Moving essential ingredients from field to table
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Dakota Growers Pasta Company is a wholly-owned subsidiary of Viterra, Inc., a global food ingredients company. We are the third largest pasta manufacturer in North America.
We have two pasta manufacturing facilities with annual pasta capacity of 560 million pounds.
Carrington, ND12 mm bushels durum330 mm pounds pastaRetail, Foodservice, IngredientIdentity Preserved, Organic, Dreamfields
New Hope, MN230 mm pounds pastaRetail, Foodservice,Ingredient
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Pasta customers demandPasta customers demand
Strict quality specifications.
Consistency each day everyday.
Competitively priced product.
Uninterrupted service.
Strict quality specifications.
Consistency each day everyday.
Competitively priced product.
Uninterrupted service.
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Durum specification for quality pastaDurum specification for quality pasta
#2 HAD or better
Minimum 59 lb. test weight.Minimum 13% protein.Minimum 85% HVAC.Minimum 300 Falling Number.
Maximum 1% damage.Maximum 1 ppm DON
#2 HAD or better
Minimum 59 lb. test weight.Minimum 13% protein.Minimum 85% HVAC.Minimum 300 Falling Number.
Maximum 1% damage.Maximum 1 ppm DON
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Don’t be misled by the view out the kitchen windowDon’t be misled by the view out the kitchen window
US Production
Year Bushels Price perception Actual price
2010 107.0 million Steady to lower Much higher
2011 50.5 million Much higher Much lower
Why the disconnect?
US Production
Year Bushels Price perception Actual price
2010 107.0 million Steady to lower Much higher
2011 50.5 million Much higher Much lower
Why the disconnect?
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Prices are impacted by North American production….Prices are impacted by North American production….
North American Production(Million bushels)
US Canadian North American2010 107.0 111.168 218.168
2011 50.5 153.279 203.779 (-6.6%)
Lower stocks should mean higher durum prices, right?
North American Production(Million bushels)
US Canadian North American2010 107.0 111.168 218.168
2011 50.5 153.279 203.779 (-6.6%)
Lower stocks should mean higher durum prices, right?
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Prices are impacted by North American production….and quality
Prices are impacted by North American production….and quality
North American ProductionBased on % of crop #2 or better
(Million bushels)
US Canadian North American2010 107.0 111.168 218.168 64.2 33.350 97.550
2011 50.5 153.279 203.779 (-6.6%) 30.3 107.295 137.595 (+41%)
Small quality crop in 2010 led to sharply higher prices.41% increase in 2011 quality durum stocks is leading to lower prices.
North American ProductionBased on % of crop #2 or better
(Million bushels)
US Canadian North American2010 107.0 111.168 218.168 64.2 33.350 97.550
2011 50.5 153.279 203.779 (-6.6%) 30.3 107.295 137.595 (+41%)
Small quality crop in 2010 led to sharply higher prices.41% increase in 2011 quality durum stocks is leading to lower prices.
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It boils down to….It boils down to….
Pasta customers demand quality and consistency even if mother nature disappoints.
Pasta manufacturers first mandate is quality, price is secondary.
First rule of durum buying; Don’t shut down the mill.
Second rule of durum buying; Find quality, no exceptions.
Don’t market durum by looking out the kitchen window.
The amount of #2 of better durum production in North America is an excellent indicator of price direction.
Pasta customers demand quality and consistency even if mother nature disappoints.
Pasta manufacturers first mandate is quality, price is secondary.
First rule of durum buying; Don’t shut down the mill.
Second rule of durum buying; Find quality, no exceptions.
Don’t market durum by looking out the kitchen window.
The amount of #2 of better durum production in North America is an excellent indicator of price direction.
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