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The Power of
Owning Food
Pop quiz...
If you bought $100,000
of bulk raw honey two
years ago, how much
could you sell it for
today?
$171,000
What if you bought
$100,000 of other bulk
foods back in August
2011?
Yellow Corn $121,000
Red Lentils $131,000
White Rice $157,000
Red Wheat $129,000
White Wheat $126,000
Pinto
Beans:
$225,000
Why August 2011?
That’s when Bulk
Food International
was formed.
We are currently
the only vehicle
for the general
public to buy store
and sell bulk food.
Supply vs Demand
SUPPLY
Farm land Disappearing
World-wide.
Year Beans % Oats % Potatoes % Rice % Wheat % Corn %
1990 32,379 357,654 402,110 156,088 2,729,778 73,075
1991 33,765 4.3% 243,851 -31.8% 417,622 3.9% 159,367 2.1% 1,980,139 -27.5% 74,962 2.6%
1992 22,615 -33.0% 294,229 20.7% 425,367 1.9% 179,658 12.7% 2,466,798 24.6% 78,146 4.2%
1993 21,862 -3.3% 206,731 -29.7% 430,349 1.2% 156,110 -13.1% 2,396,440 -2.9% 69,756 -10.7%
1994 28,950 32.4% 228,844 10.7% 469,425 9.1% 197,779 26.7% 2,320,981 -3.1% 78,231 12.1%
1995 30,689 6.0% 161,094 -29.6% 445,099 -5.2% 173,871 -12.1% 2,182,708 -6.0% 70,531 -9.8%
1996 27,912 -9.0% 153,245 -4.9% 499,254 12.2% 171,599 -1.3% 2,277,388 4.3% 78,251 10.9%
1997 29,370 5.2% 167,246 9.1% 467,091 -6.4% 182,992 6.6% 2,481,466 9.0% 78,725 0.6%
1998 30,418 3.6% 165,768 -0.9% 475,667 1.8% 184,443 0.8% 2,547,321 2.7% 78,502 -0.3%
1999 33,146 9.0% 145,628 -12.1% 478,093 0.5% 206,027 11.7% 2,295,560 -9.9% 76,524 -2.5%
2000 26,543 -19.9% 149,165 2.4% 513,544 7.4% 190,872 -7.4% 2,228,160 -2.9% 78,522 2.6%
2001 19,610 -26.1% 117,602 -21.2% 437,673 -14.8% 215,270 12.8% 1,947,453 -12.6% 74,910 -4.6%
2002 30,312 54.6% 116,002 -1.4% 458,171 4.7% 210,960 -2.0% 1,605,878 -17.5% 76,452 2.1%
2003 22,492 -25.8% 144,383 24.5% 458,199 0.0% 199,897 -5.2% 2,344,415 46.0% 77,527 1.4%
2004 17,743 -21.1% 115,695 -19.9% 455,806 -0.5% 232,362 16.2% 2,156,790 -8.0% 79,732 2.8%
2005 26,576 49.8% 114,859 -0.7% 423,788 -7.0% 222,833 -4.1% 2,103,325 -2.5% 81,047 1.6%
2006 24,155 -9.1% 93,522 -18.6% 440,698 4.0% 194,585 -12.7% 1,808,416 -14.0% 77,125 -4.8%
2007 25,586 5.9% 90,430 -3.3% 444,875 0.9% 198,388 2.0% 2,051,088 13.4% 92,580 20.0%
2008 25,558 -0.1% 89,135 -1.4% 415,055 -6.7% 203,733 2.7% 2,499,164 21.8% 84,535 -8.7%
2009 25,427 -0.5% 93,081 4.4% 432,601 4.2% 219,850 7.9% 2,218,061 -11.2% 85,095 0.7%
2010 31,801 25.1% 81,190 -12.8% 404,273 -6.5% 243,104 10.6% 2,206,916 -0.5% 87,013 2.3%
2011 19,890 -37.5% 53,649 -33.9% 429,647 6.3% 184,941 -23.9% 1,999,347 -9.4% 89,924 3.3%
2012 31,925 60.5% 64,024 19.3% 462,766 7.7% 199,543 7.9% 2,266,027 13.3% 94,754 5.4%
2013 24,486 -23.3% 65,879 2.9% 437,483 -5.5% 189,886 -4.8% 2,129,695 -6.0% 93,924 -0.9%
23 Yr
Change
-24.4% -81.6% 8.8% 21.7% -22.0% 28.5%
Drought 2012
Drought 2013
Drought 2014 YTD
DEMAND
What is the funny thing
about food?
Remember this simple fact:
The demand for ALL other
products and services will
ebb and flow with the
economy, except FOOD and
WATER.
More people = More demand
Year World Pop % change US Pop % change
1990 5,287,869,228 249,622,814
2013 7,098,495,231 34% 316,148,990 27%
Year Beans % Oats % Potatoes % Rice % Wheat % Corn %
1990 32,379 357,654 402,110 156,088 2,729,778 73,075
1991 33,765 4.3% 243,851 -31.8% 417,622 3.9% 159,367 2.1% 1,980,139 -27.5% 74,962 2.6%
1992 22,615 -33.0% 294,229 20.7% 425,367 1.9% 179,658 12.7% 2,466,798 24.6% 78,146 4.2%
1993 21,862 -3.3% 206,731 -29.7% 430,349 1.2% 156,110 -13.1% 2,396,440 -2.9% 69,756 -10.7%
1994 28,950 32.4% 228,844 10.7% 469,425 9.1% 197,779 26.7% 2,320,981 -3.1% 78,231 12.1%
1995 30,689 6.0% 161,094 -29.6% 445,099 -5.2% 173,871 -12.1% 2,182,708 -6.0% 70,531 -9.8%
1996 27,912 -9.0% 153,245 -4.9% 499,254 12.2% 171,599 -1.3% 2,277,388 4.3% 78,251 10.9%
1997 29,370 5.2% 167,246 9.1% 467,091 -6.4% 182,992 6.6% 2,481,466 9.0% 78,725 0.6%
1998 30,418 3.6% 165,768 -0.9% 475,667 1.8% 184,443 0.8% 2,547,321 2.7% 78,502 -0.3%
1999 33,146 9.0% 145,628 -12.1% 478,093 0.5% 206,027 11.7% 2,295,560 -9.9% 76,524 -2.5%
2000 26,543 -19.9% 149,165 2.4% 513,544 7.4% 190,872 -7.4% 2,228,160 -2.9% 78,522 2.6%
2001 19,610 -26.1% 117,602 -21.2% 437,673 -14.8% 215,270 12.8% 1,947,453 -12.6% 74,910 -4.6%
2002 30,312 54.6% 116,002 -1.4% 458,171 4.7% 210,960 -2.0% 1,605,878 -17.5% 76,452 2.1%
2003 22,492 -25.8% 144,383 24.5% 458,199 0.0% 199,897 -5.2% 2,344,415 46.0% 77,527 1.4%
2004 17,743 -21.1% 115,695 -19.9% 455,806 -0.5% 232,362 16.2% 2,156,790 -8.0% 79,732 2.8%
2005 26,576 49.8% 114,859 -0.7% 423,788 -7.0% 222,833 -4.1% 2,103,325 -2.5% 81,047 1.6%
2006 24,155 -9.1% 93,522 -18.6% 440,698 4.0% 194,585 -12.7% 1,808,416 -14.0% 77,125 -4.8%
2007 25,586 5.9% 90,430 -3.3% 444,875 0.9% 198,388 2.0% 2,051,088 13.4% 92,580 20.0%
2008 25,558 -0.1% 89,135 -1.4% 415,055 -6.7% 203,733 2.7% 2,499,164 21.8% 84,535 -8.7%
2009 25,427 -0.5% 93,081 4.4% 432,601 4.2% 219,850 7.9% 2,218,061 -11.2% 85,095 0.7%
2010 31,801 25.1% 81,190 -12.8% 404,273 -6.5% 243,104 10.6% 2,206,916 -0.5% 87,013 2.3%
2011 19,890 -37.5% 53,649 -33.9% 429,647 6.3% 184,941 -23.9% 1,999,347 -9.4% 89,924 3.3%
2012 31,925 60.5% 64,024 19.3% 462,766 7.7% 199,543 7.9% 2,266,027 13.3% 94,754 5.4%
2013 24,486 -23.3% 65,879 2.9% 437,483 -5.5% 189,886 -4.8% 2,129,695 -6.0% 93,924 -0.9%
23 Yr
Change
-24.4% -81.6% 8.8% 21.7% -22.0% 28.5%
What happens when there
isn’t enough?
RESERVES
The modern concept of
Strategic Food Reserves was
first proposed in the 30’s, then
further established by
Roosevelt. Then, in 2007 the
US government monetized its
entire food reserves with the
ending of the 2002 Farm bill.
From the LA Times:
“Cargill, the largest private company in
the world, began its business in 1865—
with a single grain silo. Today it is
believed that Cargill's global network
of silos store more grain than any
other private company…
But no one knows for sure because,
like the Chinese, Cargill executives
keep the amount of grain they buy,
sell and store a secret. In 2008, Cargill
parlayed its immense wheat holdings
into an 86% jump in profits on global
commodities exchanges…
Such windfalls during times of panic,
price hike and scarcity are not
surprising: Since the days of food
shortages in ancient Greece and
Rome, spikes in the price of bread
encourage grain bankers to hoard, not
bring more grain to market.”
-LA Times 2012
Summary:
Cargill is our reserves.
IMPORT?
Farm land Disappearing
World-wide.
Who will we import from?
Our imports are getting
strained with the weak
dollar. It’s more profitable to
export! Food is an
international business. Our
own food isn’t set apart for
our citizens, it goes to the
highest bidder.
For example:
We sold $20 Million of Wheat to
brazil in 2012. Then, because of
political problems with
Argentina last year, Brazil
decided to buy more wheat
from the US instead of
Argentina. How much wheat do
you think we (“we” means
Cargill) sold them in 2013?
$922 Million!!!
WHY did we sell so much
wheat to Brazil?
Because they paid more!
It’s the same reason we
export more wheat than
anyone else.
When another currency is
stronger than the dollar, that
country can bid higher on the
price of wheat. And those
with paychecks written in US
Dollars just have to pay more
for that food.
Food prices soared in the 70s.
Why?
“Considering the U.S. economy as a whole,
inflation for consumer goods, including food,
was abnormally high almost across the board
starting in 1973. This coincides with a major
depreciation of the U.S. dollar that took place
in the early 1970s and raised the cost of
imported goods. At the same time, a sharp
rise in fuel and energy prices resulted from
global shortages in supply, which had ripple
effects throughout the economy and took
many years to abate.”
-USDA Article on Food Prices on April 07, 2014
What is China saying to us after we lost our
grain reserves?
Shift in
2008
Translation:
China will be our grain
reserves.
Cargill and China both
understand something that
the typical investor
doesn’t..
The Power of
Owning Food
Read an except from the
summary of a congressional
report:
The Depreciating Dollar: Economic
Effects and Policy Response
Craig K. Elwell
Specialist in Macroeconomic Policy
February 23, 2012
“A depreciating currency could affect
several aspects of U.S. economic
performance. Possible effects include
increased net exports, decreased
international purchasing power, rising
commodity prices, and upward pressure
on interest rates; if the trend is
sustained, the United states may also
experience a reduction of external debt,
possible undermining of the dollar’s
reserve currency status, and an
elevated risk of a dollar crisis.”
“To give Congress the economic context
in which to view the dollar’s recent and
prospective movement, this report
analyzes the evolution of the exchange
rate since its peak in 2002. It examines
several factors that are likely to
influence the dollar’s medium-term path,
what effects a depreciating dollar could
have on the economy, and how
alternative policy measures that could
be taken by the Federal Reserve, the
Treasury, and the 112th Congress might
influence the dollar’s path.”
Does that strike your core as
it does mine?
Is this not the exact scenario
that is unfolding before our
very eyes?
Are China and Cargill going
to be the only ones with the
foresight to cash in on
another multi-billion dollar
windfall decade?
When massive drought
plagues our nation, are China
and Cargill going to be the
only ones with answers?
I see a future for our nation
where the American people
have their own grain reserves
And we let our own loved
ones benefit from…
The Power of
Owning Food

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The Power of Owning Food

  • 2. Pop quiz... If you bought $100,000 of bulk raw honey two years ago, how much could you sell it for today?
  • 4. What if you bought $100,000 of other bulk foods back in August 2011?
  • 5. Yellow Corn $121,000 Red Lentils $131,000 White Rice $157,000 Red Wheat $129,000 White Wheat $126,000
  • 8. That’s when Bulk Food International was formed. We are currently the only vehicle for the general public to buy store and sell bulk food.
  • 12. Year Beans % Oats % Potatoes % Rice % Wheat % Corn % 1990 32,379 357,654 402,110 156,088 2,729,778 73,075 1991 33,765 4.3% 243,851 -31.8% 417,622 3.9% 159,367 2.1% 1,980,139 -27.5% 74,962 2.6% 1992 22,615 -33.0% 294,229 20.7% 425,367 1.9% 179,658 12.7% 2,466,798 24.6% 78,146 4.2% 1993 21,862 -3.3% 206,731 -29.7% 430,349 1.2% 156,110 -13.1% 2,396,440 -2.9% 69,756 -10.7% 1994 28,950 32.4% 228,844 10.7% 469,425 9.1% 197,779 26.7% 2,320,981 -3.1% 78,231 12.1% 1995 30,689 6.0% 161,094 -29.6% 445,099 -5.2% 173,871 -12.1% 2,182,708 -6.0% 70,531 -9.8% 1996 27,912 -9.0% 153,245 -4.9% 499,254 12.2% 171,599 -1.3% 2,277,388 4.3% 78,251 10.9% 1997 29,370 5.2% 167,246 9.1% 467,091 -6.4% 182,992 6.6% 2,481,466 9.0% 78,725 0.6% 1998 30,418 3.6% 165,768 -0.9% 475,667 1.8% 184,443 0.8% 2,547,321 2.7% 78,502 -0.3% 1999 33,146 9.0% 145,628 -12.1% 478,093 0.5% 206,027 11.7% 2,295,560 -9.9% 76,524 -2.5% 2000 26,543 -19.9% 149,165 2.4% 513,544 7.4% 190,872 -7.4% 2,228,160 -2.9% 78,522 2.6% 2001 19,610 -26.1% 117,602 -21.2% 437,673 -14.8% 215,270 12.8% 1,947,453 -12.6% 74,910 -4.6% 2002 30,312 54.6% 116,002 -1.4% 458,171 4.7% 210,960 -2.0% 1,605,878 -17.5% 76,452 2.1% 2003 22,492 -25.8% 144,383 24.5% 458,199 0.0% 199,897 -5.2% 2,344,415 46.0% 77,527 1.4% 2004 17,743 -21.1% 115,695 -19.9% 455,806 -0.5% 232,362 16.2% 2,156,790 -8.0% 79,732 2.8% 2005 26,576 49.8% 114,859 -0.7% 423,788 -7.0% 222,833 -4.1% 2,103,325 -2.5% 81,047 1.6% 2006 24,155 -9.1% 93,522 -18.6% 440,698 4.0% 194,585 -12.7% 1,808,416 -14.0% 77,125 -4.8% 2007 25,586 5.9% 90,430 -3.3% 444,875 0.9% 198,388 2.0% 2,051,088 13.4% 92,580 20.0% 2008 25,558 -0.1% 89,135 -1.4% 415,055 -6.7% 203,733 2.7% 2,499,164 21.8% 84,535 -8.7% 2009 25,427 -0.5% 93,081 4.4% 432,601 4.2% 219,850 7.9% 2,218,061 -11.2% 85,095 0.7% 2010 31,801 25.1% 81,190 -12.8% 404,273 -6.5% 243,104 10.6% 2,206,916 -0.5% 87,013 2.3% 2011 19,890 -37.5% 53,649 -33.9% 429,647 6.3% 184,941 -23.9% 1,999,347 -9.4% 89,924 3.3% 2012 31,925 60.5% 64,024 19.3% 462,766 7.7% 199,543 7.9% 2,266,027 13.3% 94,754 5.4% 2013 24,486 -23.3% 65,879 2.9% 437,483 -5.5% 189,886 -4.8% 2,129,695 -6.0% 93,924 -0.9% 23 Yr Change -24.4% -81.6% 8.8% 21.7% -22.0% 28.5%
  • 17. What is the funny thing about food?
  • 18. Remember this simple fact: The demand for ALL other products and services will ebb and flow with the economy, except FOOD and WATER.
  • 19. More people = More demand Year World Pop % change US Pop % change 1990 5,287,869,228 249,622,814 2013 7,098,495,231 34% 316,148,990 27%
  • 20. Year Beans % Oats % Potatoes % Rice % Wheat % Corn % 1990 32,379 357,654 402,110 156,088 2,729,778 73,075 1991 33,765 4.3% 243,851 -31.8% 417,622 3.9% 159,367 2.1% 1,980,139 -27.5% 74,962 2.6% 1992 22,615 -33.0% 294,229 20.7% 425,367 1.9% 179,658 12.7% 2,466,798 24.6% 78,146 4.2% 1993 21,862 -3.3% 206,731 -29.7% 430,349 1.2% 156,110 -13.1% 2,396,440 -2.9% 69,756 -10.7% 1994 28,950 32.4% 228,844 10.7% 469,425 9.1% 197,779 26.7% 2,320,981 -3.1% 78,231 12.1% 1995 30,689 6.0% 161,094 -29.6% 445,099 -5.2% 173,871 -12.1% 2,182,708 -6.0% 70,531 -9.8% 1996 27,912 -9.0% 153,245 -4.9% 499,254 12.2% 171,599 -1.3% 2,277,388 4.3% 78,251 10.9% 1997 29,370 5.2% 167,246 9.1% 467,091 -6.4% 182,992 6.6% 2,481,466 9.0% 78,725 0.6% 1998 30,418 3.6% 165,768 -0.9% 475,667 1.8% 184,443 0.8% 2,547,321 2.7% 78,502 -0.3% 1999 33,146 9.0% 145,628 -12.1% 478,093 0.5% 206,027 11.7% 2,295,560 -9.9% 76,524 -2.5% 2000 26,543 -19.9% 149,165 2.4% 513,544 7.4% 190,872 -7.4% 2,228,160 -2.9% 78,522 2.6% 2001 19,610 -26.1% 117,602 -21.2% 437,673 -14.8% 215,270 12.8% 1,947,453 -12.6% 74,910 -4.6% 2002 30,312 54.6% 116,002 -1.4% 458,171 4.7% 210,960 -2.0% 1,605,878 -17.5% 76,452 2.1% 2003 22,492 -25.8% 144,383 24.5% 458,199 0.0% 199,897 -5.2% 2,344,415 46.0% 77,527 1.4% 2004 17,743 -21.1% 115,695 -19.9% 455,806 -0.5% 232,362 16.2% 2,156,790 -8.0% 79,732 2.8% 2005 26,576 49.8% 114,859 -0.7% 423,788 -7.0% 222,833 -4.1% 2,103,325 -2.5% 81,047 1.6% 2006 24,155 -9.1% 93,522 -18.6% 440,698 4.0% 194,585 -12.7% 1,808,416 -14.0% 77,125 -4.8% 2007 25,586 5.9% 90,430 -3.3% 444,875 0.9% 198,388 2.0% 2,051,088 13.4% 92,580 20.0% 2008 25,558 -0.1% 89,135 -1.4% 415,055 -6.7% 203,733 2.7% 2,499,164 21.8% 84,535 -8.7% 2009 25,427 -0.5% 93,081 4.4% 432,601 4.2% 219,850 7.9% 2,218,061 -11.2% 85,095 0.7% 2010 31,801 25.1% 81,190 -12.8% 404,273 -6.5% 243,104 10.6% 2,206,916 -0.5% 87,013 2.3% 2011 19,890 -37.5% 53,649 -33.9% 429,647 6.3% 184,941 -23.9% 1,999,347 -9.4% 89,924 3.3% 2012 31,925 60.5% 64,024 19.3% 462,766 7.7% 199,543 7.9% 2,266,027 13.3% 94,754 5.4% 2013 24,486 -23.3% 65,879 2.9% 437,483 -5.5% 189,886 -4.8% 2,129,695 -6.0% 93,924 -0.9% 23 Yr Change -24.4% -81.6% 8.8% 21.7% -22.0% 28.5%
  • 21. What happens when there isn’t enough?
  • 23. The modern concept of Strategic Food Reserves was first proposed in the 30’s, then further established by Roosevelt. Then, in 2007 the US government monetized its entire food reserves with the ending of the 2002 Farm bill.
  • 24. From the LA Times: “Cargill, the largest private company in the world, began its business in 1865— with a single grain silo. Today it is believed that Cargill's global network of silos store more grain than any other private company…
  • 25. But no one knows for sure because, like the Chinese, Cargill executives keep the amount of grain they buy, sell and store a secret. In 2008, Cargill parlayed its immense wheat holdings into an 86% jump in profits on global commodities exchanges…
  • 26. Such windfalls during times of panic, price hike and scarcity are not surprising: Since the days of food shortages in ancient Greece and Rome, spikes in the price of bread encourage grain bankers to hoard, not bring more grain to market.” -LA Times 2012
  • 30. Who will we import from?
  • 31. Our imports are getting strained with the weak dollar. It’s more profitable to export! Food is an international business. Our own food isn’t set apart for our citizens, it goes to the highest bidder.
  • 32. For example: We sold $20 Million of Wheat to brazil in 2012. Then, because of political problems with Argentina last year, Brazil decided to buy more wheat from the US instead of Argentina. How much wheat do you think we (“we” means Cargill) sold them in 2013?
  • 33. $922 Million!!! WHY did we sell so much wheat to Brazil?
  • 35. It’s the same reason we export more wheat than anyone else.
  • 36. When another currency is stronger than the dollar, that country can bid higher on the price of wheat. And those with paychecks written in US Dollars just have to pay more for that food.
  • 37. Food prices soared in the 70s. Why?
  • 38. “Considering the U.S. economy as a whole, inflation for consumer goods, including food, was abnormally high almost across the board starting in 1973. This coincides with a major depreciation of the U.S. dollar that took place in the early 1970s and raised the cost of imported goods. At the same time, a sharp rise in fuel and energy prices resulted from global shortages in supply, which had ripple effects throughout the economy and took many years to abate.” -USDA Article on Food Prices on April 07, 2014
  • 39. What is China saying to us after we lost our grain reserves? Shift in 2008
  • 40. Translation: China will be our grain reserves.
  • 41. Cargill and China both understand something that the typical investor doesn’t..
  • 43. Read an except from the summary of a congressional report: The Depreciating Dollar: Economic Effects and Policy Response Craig K. Elwell Specialist in Macroeconomic Policy February 23, 2012
  • 44. “A depreciating currency could affect several aspects of U.S. economic performance. Possible effects include increased net exports, decreased international purchasing power, rising commodity prices, and upward pressure on interest rates; if the trend is sustained, the United states may also experience a reduction of external debt, possible undermining of the dollar’s reserve currency status, and an elevated risk of a dollar crisis.”
  • 45. “To give Congress the economic context in which to view the dollar’s recent and prospective movement, this report analyzes the evolution of the exchange rate since its peak in 2002. It examines several factors that are likely to influence the dollar’s medium-term path, what effects a depreciating dollar could have on the economy, and how alternative policy measures that could be taken by the Federal Reserve, the Treasury, and the 112th Congress might influence the dollar’s path.”
  • 46. Does that strike your core as it does mine? Is this not the exact scenario that is unfolding before our very eyes?
  • 47. Are China and Cargill going to be the only ones with the foresight to cash in on another multi-billion dollar windfall decade?
  • 48. When massive drought plagues our nation, are China and Cargill going to be the only ones with answers?
  • 49. I see a future for our nation where the American people have their own grain reserves And we let our own loved ones benefit from…