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 Venture Ventura Foods Holsum Foods (CHS) - Oil Based Foods - Acquisitions - 100% Owned Wilsey Foods (Mitsui) - Oil Based Foods - Acquisitions - Large Customer of (CHS) Duplication Synergy Potential
1 st 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 Cooperative Global 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 Harvest CHS / 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
Thank You!