joint ventures with international partners november 7, 2005
TRANSCRIPT
Joint Ventures with International Partners
November 7, 2005
CHS Inc.Who Are We?
• Farmer Owned Cooperative
• $12 Billion in Sales
• 5,700 Employees
• Domestic and International Business
History of Joint VentureVentura Foods
• Holsum Foods (CHS)- Oil Based Foods- Acquisitions- 100% Owned
• Wilsey Foods (Mitsui)- Oil Based Foods- Acquisitions- Large Customer of (CHS)
DuplicationSynergy Potential
1st Joint Venture Tasks
• CEO to CEO
• Reason for Joint Venture – Vision- National (Size and Scale)
• Agree on Basic Issues- Governance- Ownership
Formation of Joint Venture
• Open Communications
• Mutual Benefit
• Trust Between Partners
Hurdles to Overcome Beyond Business
• Culture
• US Farmer Owned CooperativeGlobal Japanese Corporation
• 50/50 Partnership
• Board Trip to Tokyo, Japan
Completed Deal August 1996
• $350 Million Sales
• $8.5 Million Profits
TODAY
• $1.2 Billion Sales
• $60-70 Million Profits
• Excellent Results
• Relationship Strong
• Platform for CHS Food Business
United HarvestCHS / Mitsui
Grain Export Joint Venture
• Vancouver / Kalama- PNW- Rail - Shuttles
Mitsui Brought
• Terminal
• Global Customers
CHS Brought
• Terminal
• Grain Origination
• Terminal Transportation Expertise
Objections
• Terminal Efficiencies
• Origination / Export Partnership
• Financial Reasons
International Partners
• Similar to Domestic
• Common Objectives
• Open Communication
• Trust Between Partners
• Respect of Cultures