1 © 2009 CHS Inc.

Farmers Cooperative Conference Denver, CO 12/7/ © 2009 CHS Inc.

 Continue to expand the grain and oilseed marketing in Black Sea, Asia Pacific, South and North America (including Canada)  Commodity trading expansion in other commodities (e.g. renewable fuel, CN)  Developing an energy sourcing capability CHS Aspiration: Global Commodities  Global agriculture commodity sourcing, trading, and logistics (grain, ingredients CN, energy)  Crop inputs distribution organization  Opportunistic investments and/or financing in securing supply and demand DescriptionStrategic Initiatives Develop and expand CHS global capabilities and footprint in agriculture and energy commodities

The CHS Grain Marketing business is transitioning from being: a business that services global customers with US commodities; when the US is competitive to: a global supply chain manager that can competitively service global customers year round with multiple sources of supply

Global Grain Marketing  North America’s third largest grain exporter  Markets 1.7 billion bushels of grain annually 65% Export 35% US domestic Sales revenue: $12.1 billion  Markets grains and oilseeds in 60+ countries  Sources grain and oilseeds globally from: United States, Brazil, Argentina, Black Sea, Australia, Mexico, China  Offices outside of the US in Brazil, Argentina, China, Spain, Switzerland and Ukraine

Grain Marketing Macro Strategies  Secure long term demand access in strategic global markets  Expand global origination supply chains; improve performance  Enhance talent management/promote global employee integration  Drive global alignment; strategic and operational

CHS Global Expansion: Offices Sao Paulo Geneva Hong Kong Kiev Shanghai Buenos Aires Barcelon a

Duluth- Superior Tacoma Multigrain / CHS do Brasil CHS Europe: Kiev office Myrtle Grove Shanghai office Hong Kong office Kalama/ Vancouver CHS de Argentina CHS Europe: Geneva / Barcelona offices Grain Corp Joint Venture

Global SOYBEAN Exports

USA / South America Soybean Production Brazil = 60% of SA

World Soybean Exports Brazil = 71% of SA

Global CORN Exports

Global WHEAT Exports

What are global customers looking for?  Suppliers that control the supply chain Connection to the grower  A trading partner that delivers win-win solutions  Consistent, desired quality  Dependable / timely execution  Risk management solutions  Global supply alternatives

CHS Global Expansion SUPPLY United States Brazil Argentina Black Sea Australia DEMAND Mexico China

CHS Export Terminals July 2010

CHS Grain Locations – South America

Main Black Sea Ports

Demand: CHINA / ASIA

Population by Country  World6,546,467,833 World 1.People's Republic of China1,278,827,643People's Republic of China 2.India 1,103,371,000India 3.United States of America 299,360,879United States of America 4.Indonesia 232,850,493Indonesia 5.Brazil 187,198,330Brazil 6.Pakistan 158,130,500Pakistan 7.Bangladesh 148,238,098Bangladesh 8.Russia 141,895,047Russia 9.Nigeria 132,579,649Nigeria 10.Japan 127,417,000Japan 11.Mexico 108,299,950Mexico 12.Philippines 90,025,397Philippines 13.Vietnam 84,669,961Vietnam 14.Germany 82,125,827Germany 15.Ethiopia 75,216,629Ethiopia 16.Egypt 79,227,639Egypt 17.Turkey 70,606,609Turkey 18.Iran 68,770,655Iran 19.Thailand 64,740,467Thailand 20.France 60,880,561France

Chinese Soybean Imports

CHS Current Business Activity in Asia Corn 240 mil bus Soybeans 255 mil bus Wheat 92 mil bus Other Grains / By-Products 15 mil bus Total: 602 million bushels 15.7 million tons

CHS Global Expansion: Methodology, Challenges and Benefits 23

What methodology do we use in expanding globally?  Initial Phase: Establishment of a GM Trading Office Discovery / Education Establishment of CHS name CHS business rules / practices implemented On-boarding of CHS culture “Asset light” trading business / low risk  Second Phase: Investment Infrastructure Development Ownership (Investment, Acquisition, etc.)  Final Phase: Expansion Business line expansions to other CHS areas of competency / expertise

Competitive Landscape  Global entrants: global supply chain companies being built Regional companies become takeover targets of companies looking to build global supply platforms Growth in global demand accommodates some increase in new entrants US, SA and Black Sea markets currently very attractive  New export capacity being built 25

Global Expansion: Challenges  Human Resources  Local Business Issues Taxes Labor law Government intervention  Sovereign Risk  Counter Party Risk  Alignment 26

Global Expansion: Benefits  Human Resource pool  Global supply access Profitability Market knowledge / price discovery Export competitiveness Year round service to customers Manage risk / global arbitrage Long term growth prospects Other commodities (fertilizer)

Global Expansion: Benefits  Global demand access Targeted approach Key demand destinations Market knowledge / price discovery Other CHS business lines  Ocean vessel freight capabilities CHS ocean freight program has grown significantly in the last decade  CHS utilized over 6 million metric tons of ocean freight in 2010  Competitive ocean freight program helps bring more direct, competitive bids to US stakeholders  Services Grain Marketing and Crop Nutrients; other business units in the future

Questions?

30 © 2009 CHS Inc. Thank You!