Your SlideShare is downloading. ×
Policinski
Policinski
Policinski
Policinski
Policinski
Policinski
Policinski
Policinski
Policinski
Policinski
Policinski
Policinski
Policinski
Policinski
Policinski
Policinski
Policinski
Policinski
Policinski
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
903
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Mr. Chris Policinski President & CEO Land O’Lakes, Inc.
  • 2. Theme of the Meeting • Proud Past • Strong Today • Vibrant Tomorrow
  • 3. Land O’Lakes • Proud Past – Founded in 1921; cooperative owned by farmer-members; deep roots in the country • Strong Today – Size … $10 billion agriculture and food company – Scope … farm to table – Focus … branded business – Reach … all fifty states, expanding global business, 30 years involvement in international development – Social Responsibility … As a food company, alleviating hunger is the centerpiece of our philanthropic efforts • Vibrant Tomorrow – Focused on growth and innovation – Information, insights, expertise key to competitive advantage
  • 4. Agriculture / Agribusiness • Proud Past – Amazing productivity story • Strong Today – Producing more, with fewer resources and less impact on the environment – Delivering a safe, accessible affordable food supply • Vibrant Tomorrow – Capacity to capitalize on opportunity as population grows and need for food increases – Challenges to be met A Call to Action
  • 5. 50 100 150 200 250 300 2006968472601948 Proud Past - U.S. Ag Productivity Story SOURCE: Productivity Growth in US Agriculture, USDA (2007); Economic Research Service, American Farm Bureau Federation 1 Total output is an aggregation of crop and livestock commodities and related services 2 Total input is an aggregation of land, labor, capital and intermediate inputs like fertilizer, feed and seed 3 Disposable income spent on all food-related purchases, in and out of the home. This number falls to <6% when only home consumption is considered. Changes in U.S. agricultural output / inputs, since 1948 Index 1948 = 100 ~250% Farming practices Technology ▪ In 1930, % of income spent on food was 25% ▪ Today, % of income spent on food is 10%3 ▪ In 1930, one farmer fed 10 people ▪ Today, one farmer feeds 155 people ▪ In 1930, agriculture employed 22% of the US workforce ▪ Today, it employs 2% Total output 1 Total inputs 2
  • 6. • Corn yields – 1930 – 20 bushels/acre – 1960 – 55 bushels/acre – 2009 – 165 bushels/acre • Wheat yields – 1930 – 14 bushels/acre – 1960 – 26 bushels/acre – 2009 – 44 bushels/acre • Soybean yields – 1930 – 13 bushels/acre – 1960 – 24 bushels/acre – 2009 – 44 bushels/acre U.S. Ag Productivity
  • 7. U.S. Ag Productivity Domestic U.S. Pork Production Per Sow 1960-2001 0 5,000 10,000 15,000 20,000 25,000 1960 2009 U.S. Milk Production Per Cow Lbs. per cow
  • 8. U.S. Ag Productivity Drivers • Adoption of modern business and production management practices on the farm • Development and use of safe, proven agricultural technologies
  • 9. Strong Today – Productivity AND Sustainability • Dairy - 2007 vs. 1944 … per gallon of milk used – Used only 10% of the land; 35% of the water – Generated only 24% of the manure; 43% of the methane • Crops - 2007 vs. 1996 … – Environmental impact of crop protection products reduced by 17% on biotech crop acres – In 2007, reduced on-farm fuel use provided carbon dioxide equivalent to taking 6 million cars off the roads
  • 10. Strong Today – Food Accessibility and Affordability 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600 1930 1940 1950 1960 1970 1980 1990 2000 2010 Food expenditures as a share of disposable personal income Billion dollars $1.6 trillion If we were spending the same share of disposable personal income on food as in 1930, the U.S. families’ food bill would be $1.6 trillion higher Food spending as share of disposable income at 1930’s level Actual U.S. food expenditures SOURCE: USDA Economic Research Service
  • 11. Vibrant Tomorrow • The global population is expected to rise from 6.8 billion today to 9 billion by 2050 – and a 70% increase in food production will be required to meet growing need
  • 12. Vibrant Tomorrow Well positioned, but plenty of work ahead. • Challenges – Growth – Changing markets / consumer demands / perceptions – Finite resources … land and water • “Business Pillar” response – Address business fundamentals – Tell agriculture’s story
  • 13. Business Fundamentals • Get the basics right – Technology; quality • Set aggressive performance goals – Global perspective • Balance short-term demands against long-term point of view – Generate margin for today’s earnings and a strong balance sheet
  • 14. Telling Agriculture’s Story – Irony of Efficiency Production Ag Less than 2% of the U.S. population is directly involved in production agriculture.
  • 15. Vibrant Tomorrow – Telling Agriculture’s Story A Call to Action Improve the image and reputation of agriculture to counter: • Decisions about agriculture being driven by misinformation, opinion, emotion or even nostalgia • Misinformation and misconceptions about agriculture and the foods industry • Those who believe there is only one right way to produce the food needed to feed the world
  • 16. “The world has the technology, either available or well-advanced in the research pipeline, to feed a population of 10 billion people. The more pertinent question is whether farmers and ranchers will be permitted to use this new technology.” Dr. Norman Borlaug
  • 17. Not an “either / or” proposition We don’t promote a single point-of-view It’s about choice and co-existence • Protecting producers’ right to choose to use – or not use – proven, safe, beneficial technologies • Protecting consumers’ right to choose from a variety of food products … those that reflect what they value
  • 18. Food Economic Political Security Security Stability We Have To Get This Right! Most Publicized Food Riots … 2007-2010
  • 19. Agriculture’s Amazing Productivity Story ― Past ― Present ― Future

×