From May/June 2011 2011 C Magazine Lead Story All That Glitters Globally Cooperatives partner to keep growers connected to world markets where corn and other crops are as good as gold. This teamwork helps producer-owned businesses generate long-term added value. World market demand is rapidly realigning the commodity distribution links of the food chain. Nontraditional global players are originating grain in the United States, while U.S. companies source crops worldwide to supply their commodity customers year-round. Crop nutrients move across the oceans more than ever, too. "The velocity of change is unbelievable," says Eric Parthemore, CEO, Heritage Cooperative, based in West Mansfield, Ohio. "We're truly in a global marketplace running on real-time information. Look at how the earthquake and tsunami in Japan sent immediate economic shockwaves through U.S. agriculture." Volatility and the pace of change has the cooperative system seeking new and ever more creative ways to work together to add value and long-term viability for producer-owners. Heritage Cooperative, for example, partners with CHS to supply the central Ohio cooperative's new 30,000-ton warehouse at Kenton with unit trainloads of crop nutrients from around the globe. "None of us operates in a vacuum," Parthemore says. "Our expertise is in serving the retail customer, our member-owners. We're not in the wholesale business; we look to CHS to be our fertilizer supplier. That partnership has extended us into the global marketplace." Upward Demand Curve World food demand drives change and looks to be a long-term factor. United Nations global population projections predict food needs will continue to climb, even as U.S. agriculture exports reached a record $116 billion in 2010. Current demand comes from the Pacific Rim in particular, where consumers in flourishing economies can afford to pay for better diets that contain more protein. Unrest in the Middle East and North Africa could be a glimpse into the future as rising commodity and food prices in less-developed countries contribute to broadening discontent. With expanding demand comes outside investors attracted to ag commodities. That helps explain why hedge funds and investor-owned companies are staking claims in U.S. grain origination as well as crop nutrients and energy supply. Lynden Johnson, CHS senior vice president, Business Solutions, says plans and other reports amount to nearly $1 billion in capital invested in shuttle train-loading construction projects alone. Potential sites stretch from the Northern Plains through the Midwest to the Southern Plains. Also visit us at: https://www.chsinc.com http://c.chsinc.com https://www.cenex.com

• published: 30 Jan 2012
• views: 157