1 / 10

What’s the Value of Cooperatives? Farmer’s Cooperative Conference Tropicana, Las Vegas

What’s the Value of Cooperatives? Farmer’s Cooperative Conference Tropicana, Las Vegas. Tom McKenna, President United Sugars Corporation October 30, 2001. Sugar Industry Model. Snapshot of Domestic Sugar Industry Past & Current Trends Competitive Positioning Coops & Other Participants

kedem
Download Presentation

What’s the Value of Cooperatives? Farmer’s Cooperative Conference Tropicana, Las Vegas

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. What’s the Value of Cooperatives?Farmer’s Cooperative ConferenceTropicana, Las Vegas Tom McKenna, President United Sugars Corporation October 30, 2001

  2. Sugar Industry Model • Snapshot of Domestic Sugar Industry • Past & Current Trends • Competitive Positioning • Coops & Other Participants • Coops - Do they have an advantage? • Characteristics of Success for the Future

  3. Changing Customer LandscapeIndustrial Market • Consolidation of Food Processing Industry • Top 5 users buy 20% of Industrial volume • Customer concentration increasing

  4. Changing Customer LandscapeConsumer Market • Continued consolidation of retail grocery wholesalers and chains • 10 year trend • 12 down to 5 today represent 35% of total grocery sales • Retail grocery sugar sales continue to decline

  5. Competitive EnvironmentRapidly Changing • Imperial bankruptcy • Imperial closes and offers to sell beet sugar assets • Tate & Lyle • selling all U.S. beet and cane sugar assets • Interest in Coop structure increasing • “processing” • “marketing”

  6. Midwest Beet Sugar Price ComparisonNovember, 1999 - October, 2001 Source: Milling and Baking News

  7. Industry Consolidation Estimated Sales Volume by Supplier 1978 28 199113 2002 8

  8. Why Sugar Beet Coops? • Marketing Coop structure responds to: • slow growth opportunities • increasing buyer consolidation • need to reduce costs & increase productivity • Processing Coop structure responds to: • need for producers to preserve processing facilities or exit from market • View of future is positive

  9. Characteristics of Success • Strategic Rational for existence • Fit with market realities • Vision beyond just producing raw material • Decisions made on creditable information • Sound Financing

  10. Characteristics of Success • Coop owners/Board of Director’s ability to “Govern” • Ability to source Professional Management • Desire to be “Best in Class” Vs “investing up the value chain” • Commitment to go “all the way”

More Related