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Producers Cooperative Oil Mill (PCOM) is a cooperative mill owned by Cotton Producers. They produce and sell oil, protein meal, pellets, cottonseed hulls, linters, and whole cottonseed. PCOM also processes canola seed and sunflower seed to produce valuable oils. Plains Oilseed Products (POP) is a cooperative formed through producer membership, allowing producers to receive rebates through PCOM.
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Producers Cooperative Oil Mill And Plains Oilseed Products Coop
Producers Cooperative Oil Mill (PCOM) • Organized in June of 1944 • -14 Coop Gins • -3 Regional Coops • -Original Investment $245,000 • -Current Member Equity $15 million • Today; owned by Cotton Producers through their Members Gins • -22 Oklahoma Gins • -10 Texas Gins • -2 Kansas Gins • -8 Arkansas Gins • -2 Missouri Gins • -14 Tennessee Gins
Producers Cooperative Oil Mill (PCOM) Oklahoma City, 2007
Producers Cooperative Oil Mill Over 64 years of progress through producer ownership
Products • A ton of cottonseed will normally produce • -320 lbs of oil • -920 lbs of protein (meal or pellets) • -550 lbs of hulls • -160 lbs of linters • -50 lb loss • Of the four primary products produced, oil is the most valuable • PCOM processes & sells PBSY oil, 41% protein meal & pellets, cottonseed hulls, linters, and whole cottonseed out of our Mid-South locations.
Products • A ton of Canola Seed will normally produce • -850 lbs of oil • -1100 lbs of protein (meal or pellets) • -50 lb loss • Of the two primary products produced, oil is the most valuable • PCOM will produce Crude Degummed Canola Oil or (CDC)
Products • A ton of Sunflower Seed will normally produce • -750 - 820 lbs of oil • - 800 - 1130 lbs of protein (meal or pellets) • - 0 – 400 Sunflower Hulls • -50 lb loss • Of the primary products produced, oil is the most valuable • PCOM will produce Super Crude Degummed Sunflower Oil or (SCDC), 28-35% protein meal & pellets.
Goal and Objective of Producers Cooperative Oil Mill • To maintain a company with a strong balancesheet and to be pro-active in our long term decisions not reactive to the environment that we are exposed to ! • A company not afraid to CHANGE ! • Make decisions based on knowledge and the best professional information available (Informa Economics)
Adapting To Change • Purchased Equipment, alternative crops • Canola,Sunflowers,Peanuts,Crambe,Bean • Qualified personal for chemical extraction • Experienced sales department • Established protein markets • Established oil markets • Contracts and delivery points established • PCOM has purchased a new location for expansion.
Plains Oilseed Products (POP) • Is a Cooperative formed through Producer Membership • $100 Membership Fee • Allows Producers the ability to receive rebates through POP from PCOM • Controlled by an elected board of directors • FYE June 30
What Producers’ Needed. - The need for a rotational crop- Control weeds & insects- Improve quality of wheat- In need of a market for oilseed crops
Where does PCOM and POP fit in? (Continued) - Delivery Points- Added value to producers crop- Rural Development
Marketing Contract (Act of God) • Acres (Canola)- Acres (Sunflowers)- Delivery Points- Price Per Pound- Grade & Oil Content
2008 Nu-Sun Sunflowers $.146 per lb Marketing Contract
2009 Nu-Sun Sunflowers $.132 lbs 2009 Canola $.134 / lb. (6.70BU. ) 2009 Wheat $4.34/bushel Marketing Contract
Exhibit 1: US Planted Acreage (thousand acres) • Highlights • CRP acres will slip to around 30 million. • 2007 will represent peak corn and trough soybean plantings. • Wheat seedlings will slide lower. • Cotton acres will decline materially. • Canola and sunflower will both experience substantial growth.
Exhibit 5: US Soybean Complex Fundamentals • Highlights • The US acreage matrix allows soybean plantings to move twoard the high 70 million acre level. • Soybean yields benefit from technology introduced and approach 55 bushels per acre. • Crush increases 20-25 million bushels annually as US product needs grow. • Exportable supplies grow as production expansion exceeds crushing activity. Exports approach 1.8 billion bushels by 2016.
Exhibit 3: US Wheat Fundamentals • Highlights • Food and export volumes experience little growth. • Wheat yields trend higher, registering annual increases of or the orderof 0.5% annually. • Seeded area slips lower as even modest yield increases satisfy anticipated usage volume.
Decisions to be Made!!!!! • If I am going to plant Oilseed crops what do I need too do to be successful !!!!! • Remember Crop Rotation is Important !!! • Ask Questions. • Be committed • Fertilize-Plant correctly • Apply pest and weed control timely • Harvest by best method • Market crop throughout year with AOG contract with PCOM and POP.
Questions! Thank You