cover story: cargill’s window on the world in genevacargill’s strategic intent in action, as...
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COVER STORY: Carg i l l ’s Window on the Wor ld in Geneva
Inside this issue:• Sweeteners in China
• Poland’s Door-to-Door Feed Solution
• CLT Forum Measures
Strategic ProgressCBuildingVolume 69, No. 4 / Jan. – Feb. 2005
Special in this IssueThe Cargill DVD:“In Our Own Words”uildingVolume 71, No. 3 / Nov. – Dec. 2006
3C A R G I L L N E W SI N T H I S I S S U E
CARGILL NEWSConnecting Cargill employees
around the globe
4 DIRECTIONS
Biofuels is a growing business for Cargill. Vice Chairman Dave Raisbeck
poses some important questions about the future development of this
industry.
12 NOT JUST FOR SHOW
At the biggest food show in the United States, Cargill showed its best to four
customer segments.
14 A WIDER WINDOW ON THE WORLD
For 50 years, Cargill’s Geneva office has been the “window” for the
company’s international trading activities – a window that has grown
remarkably larger.
24 DIVING INTO BETTER PROCESSES
Springboard projects are proving that Cargill can gain a lot of efficiencies
through Noticeably Better Processes.
26 OFFERING AN ALTERNATIVE TO PETROLEUM
Cargill’s soybean-based industrial polyol offers the foam industry an
alternative to petroleum-based foam.
30 THE CHAIRMAN’S AWARDS 2006
A listing of award winners from the 2006 recognition conference awards
ceremony.
32 SUPPLIER DIVERSITY IS GOOD BUSINESS
Cargill launches a scorecard to require a more diverse U.S. supplier base.
33 A DREAM COME TRUE
Cargill’s new tortilla joint venture satisfies a dream for owner Cathy Cruz
Gooch and gives Cargill the right accent for approaching a major segment of
the U.S. food industry.
DEPARTMENTS
5 ON THE MOVE
7 CITIZENSHIP
36 RECIPES
37 25 YEARS
39 LAST WORD
EDITOR PAUL DIENHART
ASSISTANT EDITOR MAGGIE COSGROVE
CONTRIBUTING EDITORS
CHUCK BENDA
BILL BRADY
FRANCIS DEROSA
LORI FLIGGE
DAVE RAISBECK
PRODUCTION MANAGER
LISA VICKSTROM
PHOTO EDITOR BILL BITUNJAC
CONTRIBUTING PHOTOGRAPHERS
ANDREW MOLYNEUX
STEVE NIEDORF
LISA VICKSTROM
STEVE WOIT
The mission of Cargill News is to be a voice of
Cargill’s Strategic Intent in action, as Cargill
people around the world work to create
distinctive value for their customers through
innovation, high performance and customer
focus. The magazine is published six times a
year for all English-reading employees.
To use material from the magazine for other
audiences, direct inquiries to Cargill Public Affairs,
P.O. Box 5625, Minneapolis, MN 55440 or
952-742-6769. Employees can view selected past
articles and find a complete, searchable index at
pa.cargill.com.
©Cargill, Incorporated
THE CARGILL VISION
• Our Purpose is to be the global leader in
nourishing people.
• Our Mission is to create distinctive value.
• Our Approach is to be trustworthy, creative
and enterprising.
• Our Performance Measures are engaged
employees, satisfied customers, enriched
communities and profitable growth.
ON THE COVER Cargill’s Geneva office has
grown and evolved greatly during its 50-year his-
tory and is a key location for the company’s
international trading activities today.
Photo by Andrew Molyneux
D I R E C T I O N S
4 C A R G I L L N E W S D I R E C T I O N S
The biofuels industry is booming. Globally,
the production of biofuels has doubled in
the past five years. Just in the United
States, there are more than 100 ethanol
plants in operation, 42 more under con-
struction and 50 to 60 in the planning
stages. By 2010, it’s projected that the U.S.
will have 50 percent more ethanol produc-
tion than it has today.
Cargill is part of this movement, with an
investment of $1 billion in biofuels worldwide.
Yet, Cargill leaders have publicly expressed
some cautionary words about the expansion
of biofuel production – the use of food crops
for combustion instead of consumption.
Are we confused? Are we contradicting
ourselves? No, I would say that we are
asking some questions that need to be
asked. We are trying to frame a serious dis-
cussion that should take place on a global
basis. These are hard questions, but if the
world fails to ask them – and, even worse,
fails to answer them – we could face difficult
unintended consequences.
Not too many questions are being asked
when biofuel is the No. 1 ‘feel-good’ issue.
The current U.S. Congress has introduced
more than 290 energy efficiency and renew-
able energy bills. Ethanol is politically
popular. It’s emotional. It’s green. It’s patri-
otic. It feels like an easy answer to depend-
ence on foreign oil. But are we thinking
through all the long-term implications?
Let me be clear that Cargill is a major bio-
fuels producer. We are the No. 4 ethanol
producer in the United States. We are build-
ing U.S. ethanol plants and biodiesel plants
in Europe and the United States. We have a
joint venture in Brazil for ethanol produc-
tion. We are a global trader of the fuel and
feed products coming out of these plants.
And we provide marketing services to other
ethanol producers.
Cargill will be active in biofuels. We need to
be part of the supply chain, and we need to
serve customers. Many of our traditional skills
– transportation, trading, risk management,
plant operations, agricultural commodities –
translate easily to the biofuels industry.
We believe that biofuels should be part of
the energy supply. But it can only be part of
the supply. Today, ethanol supplies 3 percent
of U.S. fuel needs, consuming about 13
percent of the corn crop. Minnesota, the loca-
tion of our headquarters, has a mandate that
20 percent of the fuel supply be ethanol or
biodiesel. If all 50 U.S. states had that require-
ment and 100 percent was ethanol from the
current U.S. corn crop, then the entire crop
would be consumed for the production of fuel.
It is important to consider the conse-
quences of expanding biofuel production.
Should we grow crops for fuel rather than for
feeding the world? How much can we expand
the corn crop, and
what would that do
to other crops?
Biofuels may be a
‘feel good’ thing
today, but we have to
be proactive about
understanding the possible consequences of
both government policy and business choices.
With more corn devoted to fuel, the more
traditional uses of corn will be squeezed.
Food prices could rise. This becomes even
more complex when we consider that
feeding the world by mid-century will require
double the amount of food we produce today.
It is entirely possible that the changes
that biofuels make to food markets will be
much more significant than the dent they
make in total energy used by vehicles.
Already, we are seeing a collision between
energy and food in Europe. The European
Union has a 2010 target of renewable fuels
composing 5.7 percent of the fuel supply. That
has changed cropping patterns in Europe, with
higher planting of rapeseed, the feedstock for bio-
diesel. There are signs that the European Union
may reconsider its goal because of concerns
about rising food costs and the ability of gov-
ernments to pay for renewable fuel incentives.
When governments impose mandates,
markets get distorted. Cargill believes that
biofuel development should be based on sound
economics and governed by the free market.
Competitive sources of fuel should win out
over favoritism from government tax breaks.
It’s hard not to feel good about creating
fuel from our own crops rather than relying
on foreign oil. But mandates forcing crops
to be diverted to fuel can have conse-
quences down the road. Markets, over time,
will sort this out. The question is, how much
distortion will take place and how painful
might that distortion be to different groups?
Biofuels is a growing business for Cargill.
We are excited to be a leading player. We
enter the biofuels marketplace, however,
with our eyes open. �
BIOFUELS RAISE IMPORTANT QUESTIONSBY DAVE RAISBECK, CARGILL V ICE CHAIRMAN
D I R E C T I O N S
4 D I R E C T I O N S
“Should we grow crops for fuel rather than forfeeding the world?”
Veazey joins Corporate Leadership Team
Bill Veazey, Cargill’s chief financial officer,has been named to the CorporateLeadership Team (CLT). Veazey becamesenior vice president and chief financialofficer in September 2005. The CLT, todayconsisting of six members, represents thetop corporate leaders of Cargill.
Veazey joined Cargill in 1975. Over theyears, he has been CFO of Cargill Brazil inSao Paulo and CFO of Cargill Europe inLondon. He returned to Minneapolis in1992, was named vice president – NorthAmerican Sector in 1993, treasurer in1995, corporate vice president in 1997 andcorporate vice president – finance in 2004.
On the CLT, Veazey replaces ViceChairman Bob Lumpkins, who retired inSeptember.
Cargill Annual Report is now on-lineA summary version of the 2006 annualreport, “with customers we go >,” is onCargill’s Web site (www.cargill.com). Inaddition, several enhancements are avail-able this year on the Public Affairs page ofCargill’s intranet site (http://pa.cargill.com).
Under Financial Communications onthe Public Affairs site are a PowerPoint®
show of the customer solutions featuredin the report, slides on Cargill financialhighlights and some how-to ideas forusing the materials.
Cargill’s 2005 annual report recentlyearned a Gold Magnum Opus Award for“Best Cover” in a program sponsored byPublications Management and theUniversity of Missouri School ofJournalism.
Cargill Value Investment becomes CarVal InvestorsIn September, Cargill Value Investmentbecame CarVal Investors, LLC, anindependent subsidiary of Cargill. Sinceits founding in 1987, Cargill ValueInvestment has been a strong financialcontributor to Cargill, growing at approxi-mately 20 percent annually for the lastdecade. This new structure will allowCarVal Investors to continue its profitablegrowth.
“This operating structure provides aneffective way to fund Cargill’s future
growth without substantially increasing itsinvestment in the risk management andfinancial services platform,” said Jeff Leu,president of CarVal Investors.
CarVal Investors is a global leader inopportunistic value investing, focusing itsinvestments on four asset classes: loanportfolios, real estate, corporate securitiesand special opportunities. All of theseactivities are executed locally across theglobe by CarVal Investors’ 80 investmentprofessionals and 125 administrative, tax,and legal professionals in offices inMinneapolis, as well as Beijing, BuenosAires, Copenhagen, Delhi, London,Luxembourg, Paris, Sao Paulo, Shanghai,Singapore and Tokyo. Visit www.carvalinvestors.com for more
information.
5C A R G I L L N E W SO N T H E M O V E 5
Canadian business formed from Smucker FoodsHorizon Milling G.P., a partnership formedby Cargill and CHS Inc., has purchasedCanadian grain-based foodservice andindustrial businesses from Smucker Foodsof Canada Co., a wholly owned subsidiaryof The J.M. Smucker Company.
Horizon Milling G.P. serves Canada’sfoodservice, bakery and food manufactur-ing markets with quality flour, oats andbaking mixes. It also licenses rights toRobin Hood® brands in the Canadian, U.S.and Caribbean Basin foodservice andindustrial markets. Through a co-packingagreement, the business provides branded
retail baking products, including RobinHood® flour, to the The J.M. SmuckerCompany.
Plants include three milling operations(in Montreal, Quebec; Port Colborne,Ontario; and Saskatoon, Saskatchewan)and three dry-mixing facilities (inMontreal, Saskatoon, and Burlington,Ontario). A new company headquarters islocated in Rexdale, Ontario.
“Horizon Milling is confirming its com-mitment to the baking industry in NorthAmerica over the long term,” said GuyShoemaker, president, Horizon Milling.“We’re pleased to have this opportunity toparticipate in the Canadian baking indus-try and to build on the contributions of
The J.M. Smucker Company.”The new business adds approximately
450 employees in Canada to HorizonMilling’s 900 employees based in theUnited States.
O N T H E M O V E
Cargill’s U.S. beef is first to return to JapanAfter a case of “mad cow” disease (BSE)occurred in the United States in December2003, Japan banned U.S. beef for the pasttwo years. After lifting the ban in July,Cargill became the first U.S. exporter todeliver beef to Japan.
The first shipment arrived in August atthe warehouses of Costco WholesaleJapan Inc. Costco has five outlets inJapan.
Japan required that its governmentinspectors check U.S. beef plants for safe-guard measures prior to allowing beefshipments. Cargill cooperated fully withJapan’s inspection team.
ProPricing® contracts pass $100 million in benefitsOver the past five years, the ProPricing®
contracts Cargill AgHorizons offersfarmers have generated in excess of$100 million to farmers’ bottom lines. Thatfigure compares to what farmers wouldhave earned in the futures market at thetime of delivery.
First offered in 1999, the ProPricingfamily of contracts uses market averagesand hedging experts to establish grainprices, helping to relieve farmers of thepressure and emotion involved in grainmarketing. Farmers can contract up tohalf of their expected production of corn,wheat or soybeans in a ProPricingcontract.
“We developed the ProPricing contractsalmost seven years ago in direct responseto the needs of many of our farmercustomers who asked for more help inmanaging their grain,” said Dan Dye, presi-dent of Cargill AgHorizons. “Since thattime, we have experienced tremendousgrowth in participation, as well as solidmarketing results for our ProPricing cus-tomers.”
Cargill takes ownership of xanthan gum JVZIBO, China – Cargill has acquired100 percent ownership of its xanthan gumjoint venture here. It bought out theshares of its partner, ShandongHuanghelong Group and now owns100 percent of Zibo Cargill HuanghelongBioengineering (ZCHB). The facility willbe fully integrated into Cargill’sTexturizing Solutions business.
A versatile texturizer, xanthan gum is afermentation product derived from cornand other crops. It is used in a broadrange of industrial, pharmaceutical andfood applications. The business wasformed as a 50-50 joint venture in April2003 and was expanded in 2004.
“This transaction, together with theacquisition of Degussa Food Ingredientsin April 2006, is in line with Cargill’s strate-gy to become one of the top-ranking pro-ducers of xanthan gum worldwide,” saidCorporate Vice President RobertParmelee, who leads the company’s FoodSystem Design businesses.
“ZCHB is already one of the most tech-nologically advanced xanthan gum plantsin China,” Parmelee continued. “We arenow in a position to further improve ourChinese production by transferring somestate-of-the-art knowledge from ourFrench facility in Baupte to ZCHB. Ourxanthan gum range will now be complete,from industrial to specialty food and cos-metic grades.”
Parmelee called Cargill’s overall offer-ings of texturizing products “unmatched.”Texturizing products include xanthangum, pectin, soy proteins, starches,lecithin and texturizing systems.
New biodiesel JV announced in Kansas KANSAS CITY, Missouri. – Cargill and theMissouri Soybean Association (MSA)announced plans for a 40-million-gallon-per-year biodiesel plant and 30-million-pound food-grade glycerin refineryadjacent to Cargill’s existing soybean pro-cessing facility in Kansas City. Plans callfor the facility to be jointly owned byCargill and Paseo Biofuels, LLC, a newentity to be formed by Missouri soybeanfarmers and MSA.
Soybean-based biodiesel is America’sfastest growing alternative fuel, accordingto the U.S. Department of Energy. It is acleaner-burning fuel that can be used inany diesel engine in pure form or blendedwith petroleum diesel. It reducesemissions while offering similar perform-ance to petroleum diesel. Production atthe plant is expected to begin in thesummer of 2007.
Paseo Biofuels launched a $24 millionequity drive to make the facility majority-owned by Missouri soybean farmers. Thefacility would use soybean oil as theprimary feedstock. In addition, the facilitywould refine high-quality glycerin, a co-product of biodiesel production.
“This is a great opportunity for produc-ers to get involved in adding value to theircrops and farms,” said David Durham,board chairman of Paseo Biofuels. “Bypartnering with Cargill, one of the world’sleading food and agricultural companies,we hope to utilize its technical andmarketing expertise.”
Cargill currently operates biodieselplants in North America and Europe. Theventure allows Cargill to use its expertisein renewable fuels processing, logisticsand risk management while providing amarket for the additional soybean oil froman expanding crush capacity of its KansasCity plant, according to Wayne Teddy,president of Cargill’s Grain and OilseedSupply Chain-North America business.
6 C A R G I L L N E W S O N T H E M O V E
O N T H E M O V E
C O M M U N I T Y I N V O LV E M E N T
The Flying AngelsAlthough Cargill’s citizenship efforts inAustralia range from farm-safetyeducation to school nutrition toinnovation projects for teenagers, there’ssomething quintessentially Australianabout the company’s most visible project:support for the Westpac RescueHelicopter Service.
Cargill sponsors the chief pilots at boththe Tamworth and Newcastle bases of theservice. It is a natural project for Cargill.With its businesses located in rural areas,many employees are among the 1 million
people who depend on the service.In rural Australia, populations aren’t
concentrated enough to justify many hos-pitals. If there is a traffic accident orpeople stranded in the surf, a helicopterrescue can mean the difference betweenlife and death.
“On almost every flight, I know the indi-vidual or the family concerned,” said DonWebb, manager of Cargill’s cottonseedcrushing plant in Narrabri. “EveryNarrabri flight is life threatening becauseof the distances involved. For this reason,it’s not difficult to get involved in fund-raising activities.”
Many Cargill employees support theservice, using an automatic deductionfrom their paycheck. Private support iscrucial for Westpac, which makes it apractice never to bill individuals for theservice. About one-third of Westpac’s $7million budget comes from the state, andthe rest is from community support.
Cargill began its pilot sponsorship twoyears ago after a margarine customer,Atlantic Pacific Foods, drew attention tothe cause. The customer had an image of ahelicopter on the lid of each tub ofmargarine and was contributing one centto the service for every container it sold.
Ian McFadden, pilot at the Tamworthbase, recalled traveling 160 nautical milesto pick up a rancher who had sufferedfacial injuries when a tire came off the rim
as he was filling it. “Once the phone rings,we’re out of here in less than 15 minutes,”he said. “We’ll pick up paramedics ordoctors at the local hospital, depending onthe type of job.”
The service began with one helicopterin 1975, primarily to do surf rescues. It hassince become an integral part of the hospi-tal system. “The rural population isgrowing and relying on the aircraft as partof their health system,” McFadden said.
No wonder that the helicopters go bythe names Angel 1, 2 and 3.
TOP: Chief Pilot Peter Cook is one of the two Westpacpilots sponsored by Cargill – as the patch on his sleeveattests. LEFT: Two of the Westpac helicoptersparticipated in a rescue operation along Australia’scoast.
7C A R G I L L N E W SC I T I Z E N S H I P
B U S I N E S S P R A C T I C E S
China recognizes top community projectsSONGYUAN, China – Forty Cargillemployees from across China attendedCargill’s first annual recognition event forcommunity projects. Although the eventended with a gala awards dinner, it startedwith more volunteering.
On the morning of the event,participants did painting and plastering ata local rural primary school – the sameschool that is supported by Cargill’sSongyuan Hope Project. Cargill raisedfunds for the school by participating in theBeijing Autumn Marathon.
Other employees worked with JuniorAchievement, one of the NGOs that did apresentation on community involvementbest practices during the event, to teachclasses at the Songyuan school.
At the awards banquet in the evening, the
Songyung Hope Project was named BestProject of 2006. Luo Lan of the CargillAnimal Nutrition (CAN) Chengdu plant wonthe individual award. And the Taiwan CargillCares Council was named best council.
“It was a really exciting event,” saidNancy Zhu of CAN. “I believe the partici-pants were impressed, felt recognized,built networks and learned something tobring back.”
Cargill employees worked withstudents to plaster a classroomat a rural primary school inSongyuan.
C I T I Z E N S H I P
C O M M U N I T Y I N V O LV E M E N T
Cargill France aids rural Moroccan womenThe students at Lycee ProfessionnelMoulin Fondu, a vocational school in theParis suburb of Noisy le Sec, recentlylearned the truth behind the adage, “Whatgoes around, comes around.”
As part of their training, they had organ-ized a charitable project to help make edu-cation more accessible to rural womenliving near the Moroccan city of Sidi elMokhtar. However, when it came time todeliver the goods raised as part of theproject – 100 metric tons of clothing, blan-kets, sewing machines and other necessi-ties to equip a boarding school for youngwomen – the organizations that hadagreed to provide carrier service bowedout of the picture. Enter Cargill.
In addition to helping with the shippingand transportation logistics, CargillFrance contributed 3,000 euros and Cargillcorporate contributed $8,350 from itsGlobal Partnership Fund. As a result, thestudents were able to follow through withwhat they had started.
Ironically, a little more than a yearearlier, the headmistress at the LyceeProfessionnel Moulin Fondu, Ms. Mufraggi,had helped Cargill fulfill its obligations inone of its charitable projects.
In 2004, Cargill launched an effort to helpfour colleges in Romania. Titled “We Care,”
the project was organized to provide com-puters and books to the Romaniancolleges. Ms. Mufraggi was instrumental incollecting more than 2,000 books for theproject. When her students recently raninto a roadblock on their charitable project,Mufraggi turned to Cargill for help.
Sidi el Mokhtar is located in an econom-ically depressed region of southernMorocco, near Marrakech. In the past,young women from the rural areas hadalmost no opportunity for a formal educa-tion since there is no bus service to andfrom the schools. When the Moroccangovernment provided a house to serve asa dormitory, the students at LyceeProfessionnel Moulin Fondu found manyof the needed supplies to outfit theresidence. They also came up with enoughsewing machines to enable the boardingstudents to open a sewing shop andbecome self-sufficient. Plus, they traveledto Morocco to serve as tutors for theboarding students.
In exchange, the Moroccan studentsintroduced them to the art of rug weaving.
The boarding school opened in Marchwith Cargill representatives attending theopening ceremonies. Now, Cargill peopleare laying the groundwork for a new projectthat will help provide medical equipmentand supplies for Moroccan hospitals.
What goes around really does seem tocome around.
C O M M U N I T Y I N V O LV E M E N T
Triathlon for kids promotes giving as well as fitnessThe MiracleKids Triathlon, America’slargest triathlon for children, attractedmore than 720 child participants this pastsummer, including the children of manyCargill employees.
Besides serving as the event’s leadsponsor, Cargill also provided more than100 employee volunteers to stage thetriathlon on a sunny mid-August morningin suburban Minneapolis. Most important-ly to Mike LeSage, assistant vice presidentfor Cargill Risk Management, the eventprovided attendees with some invaluablelife lessons.
“It teaches our kids and the kids of thecommunity a great way to learn about thelifelong values of health and wellness,”said LeSage, who serves as Cargill’striathlon coordinator.
To emphasize the fitness and self-confidence rewards of being in a triathlon,MiracleKids participants are encouraged topractice swimming, biking and runningbefore the event and year-round. Many ofthe children also raise financial pledges fortheir participation. All triathlon proceeds aredonated to the Miracles of MitchFoundation, a Twin Cities nonprofit thatbenefits the families of children with cancer.
LeSage’s 6-year-old son, Jonathan, wasthrilled to join his older sister, Courtney,and participate in MiracleKids for the firsttime. “He trained hard and, two weeksbefore the event, was ready to have thetraining wheels come off his bike,” LeSagesaid. “He made it over the whole courseand said it was the highlight of his summer.He can’t wait to be in it again next year.”
Jonathan LeSage, 6, son of Cargill employee MikeLeSage, is congratulated as he crosses the finish lineof the 2006 MiracleKids Triathlon.
8 C A R G I L L N E W S C I T I Z E N S H I P
ARGENTINE AMBULANCE. Employees ofCargill’s Finexcor beef business unit inArgentina gathered around a fully equipped,high-tech ambulance that they contributed tothe community of Nelson, a town of 4,500,including the almost 500 employees of theFinexcor beef plant. The town’s previousambulance was in very bad condition. Nelsonis one of two Finexcor locations in Argentina.
C I T I Z E N S H I P
C O M M U N I T Y I N V O LV E M E N T
AFS exchange program has Cargill connectionsLast summer, 21 high school students lefthome for a six-month internationalexchange that links Cargill communitiesin the United States and Canada withCargill communities in Latin America.
The exchange experience was made pos-sible in part by a $100,000 grant to the AFSIntercultural Programs/USA (AFS) from theCargill Global ExchangeScholarship Fund. The fundprovides partial scholarships forthese students to attend school inanother country, live with a hostfamily and become immersed inanother culture.
Cargill’s partnership with AFSbegan with a pilot project in Northand South America. AFS startedits student exchange program in1947 as a way to increase globalunderstanding and reduceconflicts. Although Cargill’s part-nership with AFS only dates backa couple of years, the exchangestudent experience has deep rootsat Cargill.
Jed Hepworth, who was instrumentalin bringing the scholarship program toCargill, went to Chile in 1968 as an AFSstudent. When he arrived in Chile, heknew no Spanish. When he left, he spokeit fluently, and he still keeps in touch withhis AFS “mom.” Hepworth is currentlyvice president and Latin America generalcounsel in Cargill’s Law Department.
Marcelo Montero, business unit leaderfor Cargill Sweetness Solutions,Minneapolis, lived the AFS experiencethe other way around. A native ofArgentina, Montero came to Owatonna,Minnesota, in 1979 as an AFS student.
“My experience as an AFS studentopened my eyes to a different world andhelped me understand that no matter thenationality, race, cultural or genderdifferences, the world is full of great
people who want to make a contributionto others,” says Montero. “When I heardabout the support Cargill is providing toAFS, I could not help but smile and feelgreat about the company I work for.”
Indeed, post-participation studies haveshown that AFS participants receive highgrades, develop full fluency in the nativelanguages of their host parents, and
increase their leadership skills, selfesteem, tolerance for others,independence and problem-solving abili-ties.
“This Cargill experience helped meunderstand a new culture and languageand people in ways that I never dreamedof,” says Nebraskan Emily Northam, a2004 scholar to Argentina. Emily’sparents saw their daughter grow andchange almost beyond their belief.
“During her year in Argentina, shedeveloped into an outgoing and inde-pendent young woman,” says Emily’smother, Kelly Northam. “The confi-dence Emily has in herself and herability to speak another language flu-ently is invaluable.”
Cargill’s partnership with AFSgoes beyond simply providing fundsfor scholarships. Cargill locations inthe host community open theirdoors to the students, providingplant tours. Some students are sonsor daughters of Cargill employees,and Cargill families have served ashosts for the exchange students.
The Cargill connection can makea lasting impression. Barbara
Rodriguez, a 2004 scholar fromArgentina, says, “I’m going to study inter-national relations. I want to work for amultinational organization like Cargill.”
Four AFS foreign exchange students (L-R) Ilana Kresch(recipient of a Cargill Global scholarship), ThanasakCharernrat (Thailand), Albert Davidson (Denmark) andTone Claesson (Sweden) visited the Cargill Salt facilityin St. Clair, Michigan.
9C A R G I L L N E W SC I T I Z E N S H I P
SEE YOU AT THE ZIGGURAT. Four Cargill employees recently ran into each otherwhile serving in Iraq. Two of them – Steve Bauer of Salt IT and Keith Belanger of CargillDeicing Technology – met for the first time. “Funny that it takes a tour in Iraq for twoCargill guys to meet,” Belanger wrote. Also pictured are Walter Smith of North
American Grain and Oilseeds and Bill Snellman of Acidulants. The four got together at a4,000-year-old ziggurat, pyramid-like structures built by the peoples of ancientMesopotamia. Ziggurats were believed to be dwelling places for the gods.
C I T I Z E N S H I P
E N V I R O N M E N TA L S T E WA R D S H I P
Salzgitter cuts use of water by 25 percent! SALZGITTER, Germany – Working togeth-er, three businesses at Cargill’s plantcomplex here reduced their waterconsumption by 25 percent. The projecttook a little more than two years.
“Our objective was not only to be envi-ronmentally friendly by saving fresh waterand reducing effluent discharge, but alsomaximizing our water license,” said TimHyland, site manager. Cargill’s right to usewater is balanced by the consumptionneeds of the town of Salzgitter.
The Salzgitter complex includes a maltbusiness and oilseed processing. Threebusinesses – European Grain andOilseeds, Malt and Refined Oils Europe --collaborated on the project.
The refinements included more efficientfogging jets for germinating barley, thefirst stage in producing malt. Pumpadjustments optimized cleaning water.The borehole for drawing water was refur-bished. Other changes included a reverseosmosis system to improve water qualityfor the boiler and a new software systemfor controlling water use.
“Week by week, we watched the waterconsumption on site gradually fall,”Hyland said.
Those were just some of the changes.Total annual savings for the three businessunits has exceeded 300,000 euros.
As a result, Salzgitter’s malt plant is nowthe largest contributor to the “Eau Vive”project that builds wells for villagers inNiger. Cargill’s European malt businessescontribute a percentage of the money theysave to the African project run by France’sEau Vive organization.
Salzgitter employees Ingo Wylensek, Thomas Foersterand Juergen Hallmann check water conservation atthe borehole where water enters the plant.
C O M M U N I T Y I N V O LV E M E N T
Rebuilding after the Pakistan earthquakeMUZAFARABAD, Pakistan – Almost60,000 people were killed when an earth-quake struck Kashmir in October 2005.Whole villages collapsed. Cargill workedwith a Pakistani relief organization, TheCitizens Foundation (TCF), to helpvillagers in the valleys of Kashmir rebuildby helping construct “shelters of hope” tokeep them warm during the winter.
“The need for urgent relief was hugebecause there were fears that the harshHimalayan winter would claim thousandsof more lives,” said Imran Nasrullah,Cargill country controller for Pakistan.
Contributing $100,000, Cargill was thesecond largest corporate donor in thecountry. Employees also worked withTCF on the construction efforts and inmanaging the finances.
“We realized that in dealing with anemergency this size, it was very easy foradministrators to loose track of small dis-bursement amounts,” said Nasrullah,Cargill country controller. “We helpedTCF develop a project management stage-gate payment release process.”
TCF relief teams were among the firstto reach the remote Kashmiri valleys, longknown for their striking beauty.
“They say that Kashmir is heaven onearth, but God showed us a glimpse ofhell that morning,” said Nur Muhammad,a resident of one of the villages whereCargill built shelters.
Cargill is planning to continue itscollaboration with TCF to help rebuildschools. Over 650 schools in the valleys ofKashmir were completely destroyed inthe earthquake.
10 C A R G I L L N E W S C I T I Z E N S H I P
With more than 650 schools destroyed, children of theKashmiri valleys did their lessons outdoors with theaid of book bags donated by Cargill.
Cargill’s Imran Nasrullah with children from one of thevillages destroyed by the Kashmir earthquake.
Kashmiri villager Nur Muhammad with his son. “Theysay Kashmir is heaven on earth, but God showed us aglimpse of hell that morning,” he said.
C I T I Z E N S H I P
11C A R G I L L N E W SC I T I Z E N S H I P
De Grão em GrãoIn Brazil, the Cargill Foundation’s Grain byGrain (De Grão em Grão) programteaches agriculture and food safety tomore than 54,000 students. The initiativehas benefited 134 schools in 11 cities inseven Brazilian states.
In the program, which began in 2004,vegetable gardens are planted at schoolsto give students hands-on practice. Cargillemployee volunteers assist the studentswith planting, weeding and harvesting.The vegetables produced in the gardensare used in school lunches, providingadditional nutrition for the children.
The program was Cargill’s response toBrazilian President Luiz Inácio Lula daSilva’s 2003 call for a Zero Hungercampaign.
RIGHT: Cargill’s cocoa plant employees helped the stu-dents inspect the school’s garden.
BELOW: Marcio Menezes, an employee of Cargill’scocoa plant in Ilhéus, helped a student at the NovoIlhéus School with harvesting.
BELOW RIGHT: A student at the Novo Ilhéus School inBrazil’s state of Bahia provided a drink for the school’sgarden.
C I T I Z E N S H I P
PHOT
OS B
Y ST
EVE
NIED
ORF
12 C A R G I L L N E W S N O T J U S T F O R S H O W
ORLANDO, Fla. – It was show time, and
there were lights, cameras and action – but
for Cargill, participation in the Institute of
Food Technologists Food Expo 2006 (the
largest annual food technology show in the
United States) was about substance over
showmanship.
Cargill has a long tradition of hosting a
booth at the granddaddy of food expos,
held by IFT each summer. While this year’s
booth was a show standout with eye-catch-
ing graphics and video screens with 3-D
images, the booth served as a physical
demonstration of how Cargill works with
customers.
In the past, different Cargill business
units stood in the same booth but show-
cased their own food ingredients. This year,
the booth was organized by four customer
categories with Cargill people from differ-
ent business units and functions working
together to show how an array of ingredi-
ents can be applied for bakery, beverage,
dairy and snack/cereal customers.
Hundreds of customers and potential
customers toured the booth, including
140 customer meetings that were pre-
planned before the show even started.
Twelve featured prototypes showed how
customers could use almost 20 ingredients
or ingredient systems. Each prototype was
accompanied by a technical “story” – a tale
of how a consumer need led Cargill to
develop a concept that would help cus-
tomers meet that need.
For example, in the part of the booth that
was dedicated to showcasing solutions for
bakery customers, Cargill broke bread (and
cupcakes and tortillas) with customers and
discussed the unique ingredients and
systems that Cargill can offer.
“Our goal at IFT was to show Cargill’s
vision of providing a consistent customer
experience – an experience that our cus-
tomers see as innovative, competitively supe-
rior and uniquely Cargill,” said Paul Hillen,
vice president of marketing for Cargill Food
Ingredients and Systems North America.
But the best way to explain Cargill’s IFT
approach may be to present some of the pro-
totypes presented at the show. Unfortunately,
we are unable to offer samples. For that, you
may have to come to IFT 2007.
BAKERY CATEGORY:
Cupcake
The “yummy yellow cupcake” prototype
was of particular interest to customers
because it contained Cargill’s SweetDesign™
sweetener systems, which can be used as a
1:1 sugar replacement. It can be challenging
for bakers to adapt products to meet sugar-
free or no-sugar-added claims. Such
attempts often result in an “off” flavor or
aftertaste and dense or gummy textures.
With SweetDesign sweetener systems,
Cargill can collaborate with customers to
develop delicious, satisfying products that
provide health-conscious consumers with
options to reduce sugar and calories.
BEVERAGE CATEGORY:
Drinkertainment™ with Cargill
Flavvors
Consumers, particularly Baby Boomers and
Gen Xers, count on beverages as sources of
fun and indulgence. Cargill calls the trend
toward greater consumer experimentation
with beverages “Drinkertainment.” At IFT,
Cargill added tastebud-tantalizing, colorful,
non-alcoholic “flavor shots” to slushy bases
to create refreshing “Key Lime Mojito,”
“Ruby Red Mimosa,” “Caramel Apple IFTini”
and “Scuba Blue” flavored slush drinks.
DAIRY CATEGORY:
Soft-Serve Ice Cream
How many people do you know who don’t love
ice cream? We don’t know any either – but we
do know that today’s health-conscious con-
sumers are looking for low-fat options for their
favorite indulgences. Cargill’s new team
members from the Degussa Food Ingredients
business brought their dairy expertise to the
Cargill table to develop a low-fat, soft-serve ice
cream that offers the same pleasing taste and
mouthfeel properties as full-fat ice cream but
without that need for expensive special pro-
cessing equipment that some food manufac-
turers don’t own. Cargill’s Daritech™ XN FL
341 stabilizer blend reduces fat but increases
creaminess – a winning combination.
SNACKS AND CEREAL CATEGORY:
Peanut Butter Protein Bar
Consumers want great-tasting, convenient
protein options but protein bars have a high
propensity to harden prematurely, making it
challenging for food manufacturers to achieve
the desired shelf life. Using a patent-pending
process that allows the use of different
protein blends (i.e., customers’ unique
protein blends), Cargill can now provide a
unique solution that keeps bars soft while
maintaining their intensity of flavors. Xtend™
Sucromalt and Wilbur® H-449 Confectionery
Coating helped to make the IFT bar proto-
type delicious. Xtend™ Sucromalt, syrup
derived from sucrose and maltose, is a
member of Cargill’s recently introduced
Xtend™ family of slowly digestible sweeten-
ers, including isomaltulose. Xtend™ sweet-
eners have the natural sweetness of sugar
and are ideal for use in foods and beverages
where sustained energy is desired. �
Cargill’s booth (center) at the huge Institute of FoodTechnologists Food Expo featured four customercategories: Bakery, Beverage, Snacks and Dairy.
NOT JUST FOR SHOWAt the biggest food show in the United States, Cargill showed its best to four customer segments.
BY LORI FLIGGE
14 F E A T U R E14 C A R G I L L N E W S F E A T U R E
Fifty years ago, Cargill made a historic
decision that set it on a course to
becoming a truly global company. It
set up an office in Geneva, Switzerland,
through its subsidiary Tradax and began
importing grains and oilseeds into Europe,
primarily from North America.
On Cargill Geneva’s 30th anniversary,
Cargill News ran a special report called
“Window on the World.” When Hans Rueedi,
Cargill Switzerland’s CFO and country rep-
resentative, called recently to suggest an
anniversary update, he remarked that, “The
window has become a lot larger in the past
20 years.”
A WIDER WINDOW ON THE WORLD
For 50 years, Cargill’s Geneva office has been the center of the company’sinternational trading activities. Much has changed in recent years – new
businesses, greater collaboration, a new relationship with customers and even a new work culture. BY FRANCIS DEROSA PHOTOS BY ANDREW MOLYNEUX
The view from the office isn’t bad, either.
In fact, it’s spectacular. “This office has
some of the best views in the whole of
Geneva,” boasts Rueedi, who loves to take
visitors up to the office roof. Directly ahead
are the glittering waters of Lake Geneva, on
its left, the international airport and on its
right, the snowy peaks of Mont Blanc, the
highest mountain in Europe.
“Look,” says Rueedi, pointing, “The
French border is only 5,000 metres away.
Drive south, and you’re in Italy in an hour.
Drive northeast, you make Germany in two.”
In his 32 years at Cargill, Rueedi has seen
major changes in the company’s approach
to trading. “The grain business used to
wholly focus on trading with governments
and third parties,” says Rueedi. “Now, we
are in the whole chain, from origin to cus-
tomers. In the old days, a vessel load of
On the roof of Cargill’s Genevaheadquarters, Hans Rueedi, countryrepresentative in Switzerland, canpoint out the borders of Germany,Italy and France. An office with 35nationalities and some 25 languages,Cargill Geneva is well positioned tounderstand the factors affectingglobal customers and world trade.
16 C A R G I L L N E W S A W I D E R W I N D O W O N T H E W O R L D
Emery Koenig, leader of the WorldTrading Unit, is a constant virtualpresence in Geneva even when he’sworking in Minneapolis – one sign ofusing new technologies for trading.INSET: Marina Alvarez and ToddErickson conferred in Geneva’s lawdepartment, which has become part ofGeneva’s new focus on developingrelationships with customers.
17C A R G I L L N E W SA W I D E R W I N D O W O N T H E W O R L D
grain could change hands 40 times between
origin and destination. We were actually
competing with other Cargill locations.
That’s all gone now.
“We are still a trading company,” Rueedi
continues, “but a large part of each business
is the link to the customer.”
“Connectivity is our lifeblood,” says
Norman Hay, president of Cargill
International S.A. and head of European
energy operations. “Although diverse, the
businesses here are all interconnected in
some shape or form. Sharing the lessons
we’ve learned has resulted in a sound foun-
dation across-the-board today.”
From the beginning of Geneva opera-
tions, there was a motivation to get closer to
customers, according to Olivier Kerr, joint
business unit leader of Cargill’s grain and
oilseed supply chain in Europe. In the
1950s, the need for grain was great in
Europe, with its farm system in disarray
from the ravages of world war and its citi-
zens still enduring grain shortages and food
rationing. “By opening its Geneva office 50
years ago, Cargill had the foresight to get
closer to the customers in order to serve
them better,” says Kerr.
Over the years, the Geneva office has
worked with customers far beyond Europe.
That is one reason that Geneva is probably
the most international office in Cargill.
Global outlook
Among Cargill Geneva’s 500 employees are
35 nationalities with capabilities in 25 lan-
guages, points out Emery Koenig, leader of
Cargill’s World Trading Unit. “We have a
global view and an international flavor,” he
says. “This makes the world seem awfully
small. And it’s getting smaller!”
While the world is smaller, the multitude
of connections between countries means
increasing complexity – a fact especially
apparent to the people in a city that trades
65 percent of the world’s commodities.
“Ten years ago, we formally analyzed the
world’s grain market once every six months,”
explains Koenig. “Now, we do it every week.
Five years from now, we may well do it daily.”
The global analysis isn’t all done in
Geneva. Cargill’s network of people on the
ground in many different businesses help
assess everything from changes in political
regimes to volatility in planting patterns.
“We may have a Russian analysis on a Black
Sea situation interpreted within an hour by
another team in Asia,” says Kerr. “Nowadays,
everybody has the same access to data, and
many have access to information. But no one
else has the same analytical power.”
Koenig agrees: “Data and information are
important, but insights make the difference.
As a result, Cargill should be better than our
competitors.”
A revolution in technology also is key to
Geneva’s analytical abilities. “In 1992, when
I arrived in Geneva, we had one PC on the
floor for compiling supply and demand
data,” Koenig notes. Today, when Koenig is
in Minneapolis, his face is beamed live to
the Geneva office computers, where he has
a constant, virtual presence.
New commodities
Trading at Geneva has grown well beyond
the traditional grain and oilseeds. There are
new opportunities, such as biofuels and
even commodities invisible to the naked
eye, such as carbon credits – credits earned
for not contributing CO2 to the atmosphere.
One of the most remarkable growth
stories in Geneva is the sugar business.
Cargill sugar business in Geneva began in
1988 with a small desk in the grain division.
“Raw sugar is like grain,” says Jonathan
Drake, Sugar business unit leader. “You can
analyze it, it handles the same way, it
handles in bulk, it moves in big ships, it is
efficient, and you have structured buyers
who are generally reliable. You have a huge
futures market, so all Cargill’s financial skills
and trading skills come into play.”
Cargill’s sugar business has grown enor-
mously since the early 1990s. “We now have
200 commercial people in 16 countries,”
says Drake. “There were 22 when I joined in
1991.” Seventy of these employees are
based in Geneva.
“Gradually we began to understand this
market,” Drake continues. “People were
encouraged to take risks, and the trading
results improved as a result. Suddenly, the
market opened to us.”
One example is Brazil. Cargill was one of
the first sugar traders to focus on Brazil.
Exports from south Brazil have shot up
from barely 1 million metric tons a year in
1990 to about 18 million today.
Similar to other trading businesses, cus-
tomer relationships are playing a much
stronger role in the sugar business. The
reason is privatization. “A major change in
recent years is the idea of customers as
opposed to counterparts,” Drake explains.
“Before privatization, your counterparts
were grain boards and sugar boards. These
people didn’t care about you.”
Drake sees the Cargill grain-trading
model being applied to even more markets.
“It works,” he says. “You can take similar
concepts and apply it to electricity or coal,
and it also works. Many of the management
people in this building were in grain. It is
still the best learning experience there is.”
Transportation trading
The trading at Geneva doesn’t just include
commodities like sugar or grain. Ocean
Transportation (OT) has become a major
Cargill trading business with 130 employees
in Geneva and 180 worldwide, and its success
is based on trading, not on owning ships.
Over the past five years, OT has trans-
formed itself as one of the fastest growing
businesses in Cargill and the world’s largest
player in ocean transport of dry bulk freight.
The growth is based on building deep
expertise in trading and logistics while
actively collaborating with other Cargill busi-
ness units as well as external customers.
Some of the biggest solutions providers at
the Geneva offices are not trading business-
es. Their work enhances the abilities of the
trading operations – and vice versa.
Trading ultimately is completed by the deliv-
ery of products. Cargill has one of the best
delivery services in the world in Ocean
Transportation (OT). With 130 employees in
Geneva and 180 worldwide, OT has trans-
formed itself over the past five years as one of
the fastest growing businesses in Cargill and
the largest player in the dry bulk market.
“Freight is at the crossroads of many com-
modity industries,” says Tom Intrator, OT’s
business unit leader. “Geneva is not an ocean
port, but our collaboration with other Cargill
businesses based here – such as grain, sugar,
coal, and petroleum – is crucial. They have
great insight into their commodity worlds
and we have critical insight in ocean freight.
The combination is unbeatable.
“Freight is one of the most volatile commodi-
ties, so we had to get our trading and price risk
management strategy right,” explains Intrator.
Combining that execution with innovative
ways of transporting cargoes and an ability
to manage operational risk proved to be a
winning formula – one that attracted cus-
tomers beyond Cargill. “Ten years ago, 90
percent of our business was internal,”
Intrator says. “Today, it is roughly 50-50.”
Dry cargo includes steel, coal and grain –
and understanding each commodity
segment is vital. In this respect OT’s dual
focus on internal and external customers is
a key source of competitive advantage,
Intrator says. “With the huge amount of
available information, interpretation of data
is key, particularly with the increasing link-
ages across commodity markets.” To aid
that interpretation, OT links its seven
offices and commodity desks worldwide
with real-time screens.
OT has almost doubled in size over the
last five years and aims to double in size
again over the next five. Not bad going for a
landlocked location that oversees the opera-
tions of over 300 long-term time charters
but doesn’t own any of the ships.
Extra value
Two hallmarks of trading activity are financ-
ing and risk. Cargill just happens to have two
businesses that specialize in those areas, and
put the Geneva traders in position to offer
value that goes beyond deliverable product.
Besides logistical concerns, trading cus-
tomers are concerned about financing their
purchases and managing their financial
risks. That’s where Trade and Structured
Finance (TSF) and Cargill Risk Management
(CRM) come in and help. Applying the
financial clout of Cargill’s trade flows, CRM
creates tailored price risk management
products for some of the trading businesses’
customers.
The work of CRM began to change in 2000,
just after Cargill announced a strategy of
becoming a customer solutions company.
“Now, we identify areas where Cargill can
provide solutions internally and externally,”
says Graham Trask, head of CRM’s European,
African, Mideast and Australasia operations.
There is a normal inclination for business-
es to protect their own customer relation-
ships, Trask acknowledges. “It can be
threatening to have other personalities
come into that relationship,” he says. “But
we consider ourselves the ultimate collabo-
rator, and often do piggyback on Cargill’s
physical trade flows. Our relationship with
the sugar business, for example, frames
Cargill as a solution provider, not just a
physical provider.”
Gaining energy
Energy demand continues to grow globally
with higher prices and increased volatility,
points out Hay, who leads Cargill Petroleum,
the major energy business based here.
Meanwhile, the world of energy customers is
becoming ever more complex – from the need
for environmentally acceptable solutions to
demands for risk management services.
“This suits us,” says Hay, who also heads
European energy operations. “We thrive on
complexity. We can partner with TSF and
CRM to provide a wide range of products,
services and skills to meet customer
needs.”
Like the rest of the Geneva office, the
energy businesses are seeing the advantages
of collaboration. “There is far more integra-
tion and convergence among Cargill’s energy
businesses than ever before,” Hay says.
“Increased integration allows us to capitalize
on changes and trends in the industries and
markets. Connectivity is our life blood – both
in Geneva and across the world.”
The energy business with the longest
history in Geneva is Petroleum, which
involves gasoline, gas oil, fuel oil and crude oil.
One of the newest, created in 2002, is coal
trading. The coal business is off to a fast start.
“Coal and iron ore drive freight rates, not
grain or sugar,” explains Pat Bracken, Coal
business unit leader. “From that aspect and
its sheer size, coal is a natural commodity
for Cargill.”
The new business got a big boost from
Cargill’s reputation as an expert in ocean
transportation. “Coal is the world’s largest
traded commodity,” says Bracken. “Over 550
million metric tons of steam coal – the type
burned for energy – is shipped across the
world’s oceans every year. In terms of tonnage,
this is twice the size of the grain trade.”
With developing countries requiring more
energy, demand for coal is far from reaching
its peak. “Many people in these countries
still don’t have electricity in their homes,”
says Bracken. “Coal is the cheapest provider
of energy in terms of BTUs.”
Unlike fossil fuels, such as oil and petrole-
um, coal is abundant. “We have a 200- to
400-year supply of steam coal,” says
Bracken. “And coal’s geographic origins –
such as China, the United States, Australia,
South Africa and Russia – tend to match
political stability.”
Bracken sees a bright future for Cargill’s
coal business. It even has a pre-tested
model for growth, thanks to the sugar busi-
ness. Just as Sugar did, Coal is looking at
long-term supply arrangements, financial
investments and minority equity shares
with the coal producers.
But the coal business has a challenge that
the sugar and grain businesses don’t face: a
contract horizon that can be five to 10 years
out. “It requires analysis and management
to figure out the right package and manage
the risks involved,” Bracken says.
While the Coal and Petroleum businesses
operate internationally, Power and Gas
Markets is a regional business. “Before we
began the business in 2000, trade had been
entirely dictated by agreements with
governments, which actually owned most of
the utilities in Europe,” says Peter Bishton,
head of the European operations. “Unlike
grain, this was a new market, so nobody
could tell you that you were wrong.”
With its risk management expertise, Geneva
seemed the logical place for the new business
to operate. Placed in the right environment, the
business soon found innovative ways to use tra-
ditional trading skills for energy markets.
Understanding energy markets also helps
Cargill’s expertise in agricultural trading.
continued on page 22
18 C A R G I L L N E W S A W I D E R W I N D O W O N T H E W O R L D
19C A R G I L L N E W SA W I D E R W I N D O W O N T H E W O R L D
Collaboration between Tom Intrator’s(left) Ocean Transportation businessand Olivier Kerr’s (inset) Grain andOilseeds Supply Chain divisionallows Cargill to capture keyinsights into the world of oceanfreight and commodities.
21C A R G I L L N E W SF E A T U R E 21F E A T U R E21 F E A T U R E
Sam Schmid, controller for Ocean Transportation, enjoyedone of Geneva’s peaceful squares while taking a businesscall. Geneva, with its economic and political stability, haslong been known for its international business community.INSET: Hans Rueedi worked with Sandra Moya andFrancoise Belotti on the planning of Geneva’s 50thanniversary celebration this year.
22 C A R G I L L N E W S A W I D E R W I N D O W O N T H E W O R L D
continued from page 18
“Energy drives the cost of production of agriculture, and agricul-
ture feeds into the energy complex as people find more efficient
ways of turning crops into ethanol and gas,” Bishton explains.
Cross-business understanding is supported by what Bishton
calls the “water-dispenser-type culture” of the office. “People
are always talking about how one market may fit into another
market. And energy is a big part of the cost of production for
all the other markets,” he says.
Much change is ahead for energy businesses, so the ability to
understand the market and anticipate changes will be crucial.
Many of the changes will be driven by environmental concerns.
Trading carbon credits is one of the most recent examples
of the changing energy business. The European Emissions
Trading Scheme allows businesses with good environmental
performance to sell credits to businesses that are over the
limit on carbon dioxide emissions.
Carbon trading is working well, says Bishton. “This is good news
for us, but also good news for the planet and the environment.”
Cultural adjustments
While the business changes in Geneva have been substantial, so
have the cultural changes. “This office is much calmer than it
used to be, and the behaviors more mellow,” Drake says. “Fifteen
years ago, everybody was here until 7:45 p.m. every night. Now,
work-life balance has improved without hurting results.”
Cargill’s legal style has mellowed a bit, too. “We’re not as
confrontational now,” says Drake. “We try to resolve differ-
ences more, especially now that we have ‘customers’ as
opposed to ‘counterparties.’ ”
Today, the Geneva Law Department considers the potential
customer relationship along with the facts and law when dis-
putes come up. “In the past, Cargill was quick to threaten or
initiate legal action against counterparties,” said Todd
Erickson, the head of the Geneva law team. “While we still
need to protect Cargill’s interests, we also have to recognize
that in many instances, we now have important relationships
with valued customers. The way we approach customers on
legal issues must attempt to preserve these relationships. Like
the business units, we want to create a win-win scenario with
the customer whenever possible.”
Greater visibility is another part of the new culture.
“For 50 years, we remained unknown to the man on the
street,” says Rueedi. “We decided we needed to make our
brand known to attract talent from local universities. We want
to be recognized as the best employer in Geneva. The average
age in the office is 33, but about 10 percent of the people have
been here for more than 25 years. There is a tremendous mix
of youth and experience, underpinned by great loyalty. At the
end, we all work for Cargill.
“I am convinced we will one day have our 100-year celebra-
tion. The Geneva office links the Cargill world!” �
WHY GENEVA?For centuries, Geneva has been synonymous with trade and affluence. In the 16thcentury Reformation, John Calvin challenged the Catholic Church’s belief thattaking interest on a loan was literally damnable. This opened the door to capital,credit, banking and large-scale commerce in the city today.
Switzerland’s third-largest city, Geneva, has a multicultural air. Multilingual, too- French, German, Italian and Raumsch are the national languages, but you willalso easily get by using English. Many international humanitarian institutions arenow based here, including the International Red Cross/Red Crescent, World TradeOrganization, a major United Nations office and the World Health Organization.
“Historically, this was important for us as we did a lot of business with govern-ments,” says Hans Rueedi, Cargill Switzerland’s CFO and country representative.“Having strong UN and political links gave us an advantage. Nowadays,with more pri-vatization, this is less relevant, but we still have tax advantages of being based here.”
Known for its neutrality and economic stability, Switzerland has long had aninternational outlook. “There is an international school and a big internationalcommunity,” says Rueedi, “so whether you come from Russia or the U.S., you willfind plenty of compatriots in the city.”
Power and Gas Trading Manager Peter Bishton worked with Francoise Deshusses, seniorrisk analyst, to prepare for a trade. Bishton’s team is involved in innovative new areas ofthe energy market, such as carbon trading.
23C A R G I L L N E W SF E A T U R E 23F E A T U R E
Sidebar Story
Why Geneva?
possible cutline information:
It lies below us with its 180,000 inhabi-
tants, over a third of them foreigners from
180 nations. Clearly visible is the iconic 140
metre-high Jet d'Eau (water fountain),
spurting out 500 litres of water every
second.
�
23 F E A T U R E
Pat Bracken (top and inset), leader ofCargill Coal, talked to head trader JuanHoulin. The coal division is the mostrecent energy business created inGeneva. The combination of theexpertise in the Petroleum, Power andGas, Coal and Ocean Transportationbusinesses presents a major growthopportunity for the years ahead.
Every day, Karen Polzin gets around
50 new e-mails at her desk in the
corporate Office Center. As Cargill
e-mail users go, that’s pretty average. But
unlike most employees, Polzin, a core team
member for Noticeably Better Processes
(NBP), is in a position to do something
about e-mail overload.
Across Cargill, employees generate
21 million e-mails a month – quadruple
the number of just four years ago.
Managing e-mail overload is just one of the
processes that NBP is working to improve.
“Because e-mail is easy to do, we send
out a lot more information than we need,
and we get copied on a lot we don’t need to
know,” said Polzin. “All this information is
coming at us, but it’s difficult to take it all in
DIVING INTOBETTER PROCESSES
Springboard projects are proving that Cargill can gain a lot of efficiencies through Noticeably Better Processes.
24 C A R G I L L N E W S D I V I N G I N T O B E T T E R P R O C E S S E S
ILLU
STRA
TION
BY
HARR
Y PU
LVER
25C A R G I L L N E W SD I V I N G I N T O B E T T E R P R O C E S S E S
and synthesize the nuggets we need. So
instead, we tend to keep it all.”
A recent survey showed 60 percent of
employees keep their e-mail “forever.” That
is creating significant problems in terms of
both storage capacity and Cargill’s ability to
manage a legal process called “discovery.”
The NBP team is working on processes
to make e-mail a useful tool rather than an
expensive burden. Similar efforts are going
on for processes such as transportation,
procurement and other issues that affect
many business units. In fact, the work of
NBP is likely to impact how most Cargill
employees do their jobs.
“We have to be looking for better ways to
do things or, in some cases, not do things,”
said Richard Frasch, corporate vice presi-
dent and executive sponsor of the NBP
effort. “Better means lower cost. It means
speed and agility. It means efficiency and
continuous improvement.”
The NBP effort started in late 2004, and
since then five “springboard” projects have
tested the theory. Using standardized
processes and backed by tools and training,
the projects aim to produce real financial
gains. Early results show NBP does, in fact,
work.
In procurement alone, $70 million in
annual savings has been identified through
more effective processes.
“How do we eliminate some of the unnec-
essary uniqueness that we have and begin
to capture some of the scale and scope of
this enterprise called Cargill?” asks Frasch.
Members of the NBP team say it could take
eight to 10 years to fully implement NBP
because this is about culture change across
the company. It means extending the notion
of customer focus to the processes that cus-
tomers view – or don’t view – as valuable.
“As business leaders, we want to identify
and invest in those activities our customers
recognize as creating value,” explained Jon
Ruth, head of the NBP team. “For those
activities they don’t value, we need the
determination and conviction to do them as
effectively and efficiently as possible.
As that happens, the NBP team is confi-
dent that Cargill will be on a path to becom-
ing a noticeably better company. �
ON THESPRINGBOARDThe following are short summaries of the
springboard projects currently underway.
E-mail Retention:
This project will
ultimately impact
every e-mail user
in the company.
A new e-mail
system already is
being rolled out
across Cargill. New e-mail
protocols will be implemented by business
units to help manage how e-mail is stored
– for example, new standards for how long
e-mails may be kept before they are
deleted. There also may be guidelines for
which e-mails may be stored long-term and
how they should be stored. Eventually, this
project will reduce the huge volume of e-
mail currently being stored, some of it
more than a decade old.
Procurement:
Since beginning
work in January,
the procurement
springboard
project team has
identified $70
million in savings. For
example, Cargill spends $200 million a year
on plastic bags used to ship everything
from salt to wheat flour. The analysis
showed most of that money is spent well,
but 20 percent potentially could be better
managed. Better coordination among busi-
nesses could help Cargill leverage its size
and scale to get the most for its money.
Transportation:
Each year, Cargill in
North America
spends almost
$1.8 billion on
transportation,
nearly half of that
in motor carrier
freight. But the company
may not be getting the rates it should for
that level of volume. The springboard
project team is looking at which businesses
have transportation patterns similar
enough that they could collaborate and
negotiate together. The team also is devel-
oping consistent processes for managing
global container freight and North
American warehouses and terminals.
Project Delivery Process:
Currently, $2 billion in construction
projects are underway in business units
across Cargill. The Project Delivery
Process (PDP) team is looking at how
these projects could be more cost
effective. Solutions
could include more
planning upfront
and using a
broader team –
not just
engineering – to
manage the effort. If
PDP can improve the outcomes by only 1.5
percent on large projects, it would be
worth hundreds of millions in added value.
Real Estate:
Cargill has operations and offices in coun-
tries all over the world. Yet, business unit
controllers typically
handle real estate
decisions and
transactions
one deal at a
time. In evalu-
ating the
company’s real
estate transactions,
the project team found opportunities for
savings through better coordination.
Recommendations include identifying
third-party experts to handle these trans-
actions, giving the company more cost-
effective real estate deals in the future.
Are you sitting down? Chances are –
whether you’re parked on an office
chair, a sofa or the edge of your bed –
you’re sitting on a piece of polyurethane
foam. When you hop into your car, you’ll be
sitting on the same kind of foam. And if
you accidentally back into a wall
on the way out of your parking
spot, the five-mile-an-hour
bumpers protecting your car
owe their flexibility and “give” to
the polyurethane foam inside.
Polyurethane foam is just another
one of many modern conveniences
that make our life easier but that we
hardly notice. One of the major
ingredients that make up
polyurethanes are “polyols,”
which traditionally are made
from petroleum. That is starting
to change, and Cargill is at the
forefront of that change.
Earlier this year, two major
polyurethane foam manufac-
turers – Hickory Springs
Manufacturing Company,
which makes foam for fur-
niture and bedding, and
Woodbridge Group,
which sells foam for
automotive use –
began to use a
s o y b e a n - b a s e d
industrial polyol
from Cargill in
their formula-
tions. A few
months later,
North Carolina
Foam Industries
converted part of its
production to Cargill’s
biobased polyols.
These developments mark the foam
industry’s first steps away from complete
reliance on petro chemicals, as well as
Cargill’s first biobased industrial product
since NatureWorks® PLA, the plastic made
from corn.
OFFERING AN ALTERNATIVETO PETROLEUM
Cargill’s green product is providing a cushion to polyurethane foam users. BY BILL BRADY
26 C A R G I L L N E W S O F F E R I N G A N A L T E R N A T I V E T O P E T R O L E U M
Foam manufacturers are eager for a
product that functions like petroleum-based
products and costs about the same. What
they’ve found with Cargill’s biobased polyols
is that they function even better than their
traditional competition, in many cases pro-
viding benefits like better fire retardance
and less color fading.
The fact that it’s a “green” product made
from renewable resources doesn’t hurt,
either. So far, Cargill’s polyols, sold under
the name BiOH™ (pronounced BIO), can
replace between 10 and 40 percent of the
petroleum-based polyol normally used in
many foam formulations. The goal is to
develop products that will replace
100 percent of petroleum-based polyols.
Creating believers
“Five years ago, we looked at a soy-based
product from one of Cargill’s competitors
and it stunk,” says Bobby Bush, vice presi-
dent for foam and environmental technolo-
gy for Hickory Springs.
By that, he means just what he says. The
product literally smelled terrible – “like
burnt popcorn,” he
recalls.
Think about it.
This is something on
which people are
going to be sleeping,
sitting down over
dinner, relaxing
with a good book.
If it smells bad,
that’s a deal-breaker.
When Yusuf Wazirzada was handed the
biobased industrial polyols project three
years ago, both he and his manager,
Industrial Bioproducts Senior Director Jim
Stoppert, knew that to make any kind of
inroads in flexible foam, they would have to
solve the odor problem. “More than one
industry leader said we’d never be able to
get into flexible foams due to the technical
challenges,” says Wazirzada. “We proved
them wrong.”
Truth be told, even some of Cargill’s own
research and development people had their
doubts.
“Flexible foam was the last place anyone
thought biobased would work,” recalls Jeff
Malsam, principal research engineer for
Cargill. “Yusuf insisted we go for it anyway
because it’s the largest market, has a small
number of customers making large purchas-
es and has the right price points. Besides,
everybody else believed it couldn’t be done.”
Like rising bread
Making flexible foam is like baking a giant
loaf of bread, explains Bush while
standing at the head of a conveyer
belt at his company’s headquarters
in Hickory, North Carolina. “You
mix the ingredients together,
pour the mixture onto a con-
veyer belt and watch it rise.”
Bush points to a series of
hoses leading into a kind of
oversized mixing bowl,
each hose containing
one of the ingredients
for the polyure-
thane foam recipe.
As it pours from the
mixer, white batter
about one-inch
thick covers the
five-foot-wide
(1.5 m) belt.
By the time
it rolls off
the line
t w o
minutes
and 50 feet
(15 m) later,
27C A R G I L L N E W SO F F E R I N G A N A L T E R N A T I V E T O P E T R O L E U M
Yusuf Wazirzada, businessmanager for biobasedurethane polyols, relaxesatop a sofa made to look likebarrels of oil, meant to drivehome the point that, “It’stime to reconsider what goesinto your furniture.”
PHOT
O BY
LIS
A VI
CKST
ROM
chemical reactions in
the mixture have leav-
ened the one-inch “flat-
bread” into a four-foot-
thick (127 cm) loaf of
foamy material.
Every so often, a thin
saw slices across the
foam to create 50-foot-
long “buns,” the actual
term used because they
evoke the look of a
bread bun. Fresh off the
line, the bun feels tacky
and quite warm, even
though it hasn’t been in
an oven. All the heat
comes from the chemi-
cal reactions. The bun
cures in a warehouse for
about two days before it
gets compressed and
sliced into five 10-
footers, which then are
rolled into cylinders and
packed into trucks
bound for furniture
assembly plants.
Like bread making,
foam making is a sensi-
tive process. “You can’t
open the oven too soon,
and a small shock can
cause it to collapse,”
says Dimitri Dounis, corporate director of
marketing and research and development
at Hickory Springs. Miscalculate the ingredi-
ent mix, and you’ll have scorching or
unsightly yellowing as the material cures.
And then, of course, there’s the matter of
getting it to smell right – something only
Cargill has been able to pull off.
Just how Cargill solved the odor problem
is proprietary. The solution was a combina-
tion of Cargill’s extensive understanding of
vegetable oil processing and its willingness
to work with outside experts.
“We had no reason to be technologically
arrogant,” says Stoppert. “We might have
been able to do this entirely in-house, given
time, but there was no reason to do that if
the expertise existed elsewhere.” Which it
did, in a rather unlikely place: Pittsburg
State University in Pittsburg, Kansas.
Polyols on the prairie
Pittsburg State happens to be the home of
the Kansas Polymer Research Center
(KPRC). Its research director, Zoran
Petrovic, is a renowned polymer specialist
from the former Yugoslavia who emigrated
to the United States when war broke out in
his homeland in the 1990s. He enjoys rural
Kansas in part because “it’s as flat as where
I came from,” he jokes.
Petrovic has been able
to attract a crack team
of scientists to join him.
The problem with
previous attempts at
soy-based polyols,
according to Petrovic,
is that the people
working on it were oil
chemists, not polymer
specialists. In 2003,
Cargill and KPRC
signed a joint research
agreement. By late
2005, Cargill had
licensed a number of
KPRC patents, found a
toll processor to make
odor-free biobased
polyols and had begun
selling commercial
product to customers.
From concept to
commercial sales in
26 months was a fast
pace – but it had to be.
Wazirzada was con-
vinced that Cargill was
not the only company
looking at this space. “It
was a race – whoever
got there first has the
dibs on the intellectual
property,” he said.
The fast-track development effort was
helped by the fact that it coincided with a
record run-up in oil prices, which was
further compounded by Hurricane Katrina.
“All of the major oil refiners on the Gulf
Coast got hit at a time when prices were
already at record levels,” said Wazirzada. “This
added another layer of uncertainty for our
customers and prompted them to get serious
about developing other options. We stepped in
with a viable option.”
Nose to foam
Options had been few in the foam industry.
Traditionally, there have been three to four
major suppliers of polyurethane feedstock,
none of whom had much incentive to
28 C A R G I L L N E W S O F F E R I N G A N A L T E R N A T I V E T O P E T R O L E U M
Bobby Bush, Hickory Springs’ vice president for foamand environmental technology, perches atop one ofhundreds of 50-foot foam “buns” churned out byHickory Springs daily. The buns are sliced into 10-footpieces for sale to furniture and bedding makers.
PHOT
OS B
Y ST
EVE
NIED
ORF
29C A R G I L L N E W SO F F E R I N G A N A L T E R N A T I V E T O P E T R O L E U M
develop biobased prod-
ucts to compete with
their core line. A
chance to expand the
supplier pool is another
reason customers like
Hickory Springs and
Woodbridge were sup-
portive of Cargill’s
efforts, providing timely
commercial feedback
so the development
team could quickly
make adjustments.
On a recent trip to
Hickory Springs’ head-
quarters, a five-member
delegation from Cargill
was soliciting customer
feedback in person – a
hands-on, nose-to-nose
exercise.
We mean this, of
course, literally. Hickory’s
production people
dragged a 10-foot-long
bun right into the con-
ference room so the
Cargill team could
touch it, run their
fingers up and down it
and, in the case of Dave
Simpson, stick his nose
in it. At least, that’s
what it looked like Cargill’s national sales
manager for biobased polyols was doing.
Actually, he was blowing through it to test
for airflow.
“You want it to flow; better flow means
better flexibility,” says Simpson. “That
means it bounces back to form when
someone gets up after sitting on it.”
Simpson has been selling to the
polyurethane foam industry for more than
30 years. He knows foam. More to the point,
the foam industry knows him. He was the
newest member of the Cargill team on the
Hickory visit – having joined just a week
before – but to the customer his was the
most familiar face, even when it was buried
in a foam bun.
Simpson is typical of the polyols team
that Wazirzada has put together, a team that
combines experience with enthusiasm.
“Lots of people know hydroxyls,”
Wazirzada says. (We’ll have to take your word
on that, Yusuf.) “But few have the passion to
start a business from the ground up. We
looked for that virus in everyone we hired.”
Technical Services Director Ricardo de
Genova is clearly one of the infected. “We’re
in an industry where three or four players
make the rules, and we’re out there break-
ing them!” exclaims De Genova, who spent
21 years with Dow
Chemical. “You can do
things with this chem-
istry that you can’t do
with petroleum. It
tickles my funny bone.”
The biobased polyols
team at Industrial
Bioproducts will need
that enthusiasm to
overcome the obstacles
still ahead for them
–including some
matters of perception.
Product Manager
Jessica Koster reports
that during focus
groups conducted last
spring someone asked
if the dog would eat the
couch now that its
foam is made from soy-
beans. (That would be
a “no.”)
Count Cargill top
management among
those betting on the
biopolyols team. “They
are doing a lot of things
right,” said Corporate
Vice President Scott
Portnoy. “Yusuf has
carefully put together
the best people he can
find from Cargill and from the industry –
people with real experience and credibility
with the customer.”
With the solid start the business has had,
no one will be surprised if its prospects con-
tinue to rise as fast as the foam coming off
the line at Hickory Springs. �
Starting with customer focus
on providing an alternative
to furniture and automotive
makers, an innovative,
patent-protected polyurethane foam
made from soybeans is giving high
performance in the form of cost savings
and functionality over traditional petrole-
um-based foam.
It all starts with the soy-based polyol oil. Dimitri Dounis(center) checks out a sample provided by Ricardo deGenova (left), technical services director for Cargill'sbiobased polyols business, and Jeff Malsam, principalresearch engineer.
30 C A R G I L L N E W S T H E C H A I R M A N ’ S A W A R D S 2 0 0 6
Editor’s note: Cargill News will have
extensive coverage of the 2006 Global
Leadership Forum and Recognition
Conference in the January-February issue.
The meeting took place just as this
magazine was going into production, but we
wanted to share and congratulate these
winners from the Recognition Conference’s
awards ceremony. More in the next issue.
CHAIRMAN’S AWARD
FOR LEADERSHIP
Achievement in Biofuels Leadership
Todd Standbrook, assistant vice president
and Ethanol commercial manager
Achievement in Corporate Social
Responsibility
Bruce Burdett, business unit leader of Sun
Valley Central America
Achievement in Leadership of
U.S. Turkey Business
Steven Willardsen, vice president and general
manager of Cargill Value Added Meats
Achievement in High Performing Teams
Martin Aschauer, director of technical
services for Cargill Salt
Achievement in Leadership Through
Learning and a Personal Commitment
to Quality
Ginger Lynch, plant manager of Sunny
Fresh Foods
Achievement in Breakthrough in Status
Quo Systems
Yashinao Nishiwaki, credit department
general manager, Toshoku
Achievement in Corn Milling
Procurement
Valarie Conard, Corn Milling procurement
manager
Achievement in World Class Plant
Charlie Walseman, plant manager for Cargill
Animal Nutrition in Albany, New York
CHAIRMAN’S AWARD FOR
INNOVATION
Achievement in Commercialization of
Biobased Polyols
Cargill Emerging Business
Shared Services
Tim Abraham, Diza Braksmayer, Peter
Bulk, Jack Dai, Gary Davis, Ricardo
DeGenova, Paula DeGrandis, Heidi
DeSautel, Kathy Emery, Phillip Fantle, Deb
Johnson, Glenn Johnston, Jessica Koster,
Jeff Malsam, Jim Millis, John Raley, David
Simpson, Daniel Stevens, Daniel Stover,
Charles Tanger, Kevin Uptain, Julie Wallin,
Derik Ward, Yusuf Wazirzada, Greg Wold,
Nancy Zittergruen
Achievement in Development of Xtend™
Sucromalt
Cargill Sweetness Solutions
Bill Besson, Deb Bigelow, Douglas Bogs,
Angela Bonnema, Ting Carlson, Kim
Carson, Julio Cruz, Henry Cunningham,
Kenneth Decrescenzo, Renee Domingo,
Rod Fisher, Robert Kilpatrick, William
Kvasnica, Zanna McFerson, Anne Mollerus,
Roy Moulesong, Robert Neumann, Tim
Oolman, Kaarin Ottman, Carol Palmer,
David Reeder, Tim Taylor, Sharon Walbert,
Derik Ward, Adam Whittaker, Anton Woo
Achievement in WTU Decision
Support System
Cargill World Trading Unit
Jonathan Cook, Joelle Gobbo,
Trevor Hebditch, Mustafa Munur,
Raymond Rogers
Achievement in Harvest Health and On
Farm Equipment
Cargill AgHorizons and Cargill Risk
Management
Lisa Bilstein, Rebecca Chase, Joe Chen,
Earl Dick, Eric Glenn, Dean Grossmann,
Dennis Inman, Jennifer Kazin, Kurtis
Klecker, Frank Remley, Doug Roose, Jeff
Seeley, Gabriel Sheets-Poling, Mark Tracy
Achievement in Wal-Mart Case-Ready
Variety Meats
Cargill Beef
Randy Briggs, Duane Clark, Tom Healy,
Howard Hiemstra, Carmen Kelling,
Kevin Lage, John Niemann, Chad Wootton,
Rich Wyatt
CHAIRMAN’S AWARD FOR HIGH
PERFORMANCE
Achievement in Cargill Ethanol
Cargill Corn Milling North America
Patrick Bennett, Dave Booher, Lesley
Doehr, Mike Etzel, Larry Holy, Timothy
Howe, Dennis Inman, Chris Muehling,
Jean-Francois Muse, Chris Putnam, Brian
Silvey, Todd Standbrook, Clayton Weiby,
Jeff Zyskowski
THE CHAIRMAN
31C A R G I L L N E W ST H E C H A I R M A N ’ S A W A R D S 2 0 0 6
Achievement in the Power of an
Engaged Team in Creating a
Sustainable Business
North American Wheat Gluten Team,
Horizon Milling, LLC
Aleksander Gruca, Bruno Hoenel, Pieter
Horst, Sherman Howard, Russ Loecken,
Richard Mossel, Rob Ostrander, Jim
Recktenwald, Pat Rogers, Mart Snoek,
Matt Steinmetz, Jen Stolz, Sally Toomey,
Mike Wagner, Brian Walker, Paul Zavala
Achievement in Foreign Exchange
Management Initiative
Treasury Argentina
Ariel Carruthers, Adriana Delgui, Cintia
Drappo, Mariano Magro, Claudio Moreno,
Claudio Romar, Alejandro Russo
Achievement in Cargill Named
McDonald’s 2005 Supplier of the Year
Cargill Dressings, Sauces and Oils;
Sunny Fresh Foods; Cargill Meat
Solutions; McDonald’s Business UUnit;
Corporate Food Safety; Public Affairs;
Cargill Corporate Leadership
Scott Dattalo, Steve Dinkla, Rae Guillermo,
Cliff Koroll, Mike Mullins, Ram Reddy, Pete
Richter, Jeff Schneider, Alan Smith, Steve
Stonecipher, Christine Gimm, Ernie Unger,
Steve Clark, Melissa Forte, Ronda Vienne,
Robert E. Lee, Mary Oelrich, Scott Woodard,
Carol Kasper, Glen Goldman, Stephen
Giunta, Marie McKean, Felipe Diaz, Jennifer
Amick, Cicely Anderson, Betti Latimer,
Michele-Ann Begandy, Patricia Pollay, Dave
Harlan, Amy Lofdahl, LouAnn Otten, Janelle
Manthie, Derek Zinkhon
CHAIRMAN’S AWARD FOR
CUSTTOMER FOCUS
Achievement for Cargill Meat Solutions
and Safeway Rancher’s Reserve
Cargill Beef
Ken Bull, Rick Dalton, Glen Dolezal, John
Flynn, Rob Heithoff, Paul Hiemenz, Misty
High, John Niemann, Greg Persing
Achievement for Expansion of
Liquid Adjuncts
Cargill Corn Milling North America
Greg Brecht, Susan Haas, Scott Helstad,
Zanna McFerson, Gonzalo Petschen, Mark
Reynolds, Mark Ruark, Bill Trecker, Patrick
Williams, Greg Zerman
Achievement for Brand Management
Solutions LLC
Cargill Value Added Meats
Peter Brown, Jerry Grim, Carl Hermreck,
Francine Huseby, Nancy Kaiser, Stacy
Lacy, Richard Morley, Devon Pence,
Heather Schwanz, Brian Sikes, Patrick
Sugrue, Brent Wolke
Achievement for Collaboration with
Ajinomoto Co., Inc.
Cargill Health and Food Technologies
Lea Buerman, Akira Kumatori, Mariko
Masui, John O’Dwyer, Steve Snyder, Hank
Wong, Frank Wood
Achievement for PepsiCo Healthy Oils
Initiative
Cargill Grain and Oilseed
Supply Chain
Doug Christie, Chad Cliff, Herve De-
Praingy, Michael Duesing, Bryan
Edwardson, Laurent Mercier, Francisco
Morelli, Franck Pruvost, Greg Zerman
CHAIRMAN’S AWARD FOR
BUSINESS EXCELLENCE
Cargill Animal Nutrition Thailand
Cargill Starches and Sweeteners Turkey
PT Hindoli, Tropical Oils Asia
Cargill Value Added Meats –
Retail Business
Cargill Salt
World Trading Unit, Malaysia
Sun Valley Europe
Cargill Corn Milling
Cargill Deicing Technology
JAMES R. SPPICOLA AWARD
Cargill Animal Nutrition Korea
CHAIRMAN’S AWARD FOR
ENVIRONMENT, HEALTH AND
SAFETY
Cargill Value Added Meats
World Trading Unit
Sun Valley Europe
Cargill Starches & Sweeteners Turkey
Flour Mercosur
BEST PLANT AWARD
Cargill Salt – St. Clair, Michigan
(Best Plant)
Flour Mercosur – Pilar Plant, Buenos
Aires, Argentina (Role Model Plant)
Corn Milling – Eddyville, Iowa (Role Model
Plant)
N’S AWARDS 2006
32 C A R G I L L N E W S S U P P L I E R D I V E R S I T Y I S G O O D B U S I N E S S
Earlier this year, four Cargill business
units — Deicing Technology, Salt, Sunny
Fresh Foods, and Corn Milling North
America — were honored with Cargill’s first
Supplier Diversity Awards. The awards
program is just one sign of the importance that
Cargill is placing on bolstering its
U.S. supplier base with more minor-
ity-owned, women -owned and
small business enterprises.
“Our customers want to be able
to tell their customers – the con-
sumers who purchase their prod-
ucts – that they’re doing all they
can to hire and buy from individu-
als who look like they do,” said Tim
Thomas, Cargill’s director of suppli-
er diversity since 2003.
In August, President Greg Page
announced to all U.S. business unit
and function leaders that Cargill
has established a supplier diversity
scorecard. All U.S. operations were
immediately required to set suppli-
er diversity KRAs and dollar goals.
“I ask you to make supplier
diversity a priority,” wrote Page,
who called it an “imperative” to
increase Cargill spending with
certified diverse suppliers.
Many Cargill customers are
demanding that suppliers help them in
diversifying their supply base. Many of
Cargill’s strategic customers, for example,
are requiring Cargill to file quarterly reports
on supplier diversity performance.
“Our customers are focusing on the
increasing buying power of an ever-chang-
ing, diverse population and the impact it has
on profitable growth,” says Thomas.
Demographic trends in the United States
make it clear that increasing supplier diversity
is a matter of good business and common
sense. Minority groups now constitute slightly
more than 30 percent of the U.S. population.
By 2050, it’s projected that minorities will con-
stitute almost half of the U.S. population.
Today, minorities and women combined
wield 83 percent of U.S. purchasing power
($7.6 trillion in 2005).
“Our goal is to make it easier for minority-
and women-owned businesses — and small
businesses in general — to connect with the
right people inside our company,” says Scott
Montgomery, vice president for Cargill
Procurement. “Approaching a global
company like ours can be challenging; we
want to do all we can to clear unnecessary
obstacles to doing business with Cargill.”
To meet that goal, Cargill has undertaken
a number of actions in recent years. These
include expanding the Cargill Website to
include certified diverse supplier require-
ments, a database of such suppliers as a
search tool for its U.S. operations, and a list
of goods and services frequently
purchased by Cargill. In addition,
Cargill regularly advertises its
commitment to supplier diversity
in a number of national business
magazines to help spread the word
to potential new diverse suppliers.
Several U.S. organizations
certify diverse suppliers, including
the National Minority Supplier
Development Council and the
Women’s Business Enterprise
National Council. Page urged U.S.
managers to work with existing
diverse suppliers to help them
with certification.
Customers clearly appreciate the
effort. When Cargill earned
McDonald’s first-ever U.S. Supplier
of the Year Award – out of a supplier
base of 4,000 – one of the qualities
cited by J.C. Gonzales-Mendez, vice
president of McDonald’s North
America Supply Chain, was Cargill’s
commitment to increasing supplier
diversity with minority-owned businesses.
That kind of commitment to supplier
diversity is apparent in the numbers. When
Thomas became director of supplier diversi-
ty in 2003, Cargill worked with approximate-
ly 1,000 diverse suppliers. Today, that
number is over 2,600, and the dollar spend is
up by 41 percent. More importantly, growing
supplier diversity is becoming a shared goal
across U.S. business units and functions.
continued on page 36
SUPPLIER DIVERSITY IS GOOD BUSINESS
Cargill launches a scorecard to require a more diverse U.S. supplier base.BY CHUCK BENDA
33C A R G I L L N E W SA D R E A M C O M E T R U E
Cathy Cruz Gooch had a dream, and
today she can show it to you: a former
trucking warehouse in Eagan,
Minnesota, has been transformed into a spot-
less food manufacturing facility making
800,000 tortillas a day. Catallia Mexican Foods
is a joint venture with Sunny Fresh Foods
(SFF), Cargill’s value-added egg business.
Although Cruz Gooch had been in the
tortilla and Hispanic foods
business for 20 years, she
always had outsourced man-
ufacturing. The joint venture
with SFF provided the
capital and expertise to
move into production.
“Having our own plant
after 20 years is a dream
come true,” Cruz Gooch
says. “Now, we control the
quality instead of providing
specs to a supplier. We can
do product development
and get closer to the cus-
tomer. Really, it gives us a
chance to control our own destiny.”
The joint venture qualifies as one of the
more unusual in Cargill. “It wasn’t an easy fit
for Cargill,” admits Dennis Darnell, vice
president of business development for SFF.
“Cargill tends to think of joint ventures on a
much larger scale, and we prefer to be the
majority partner. This was a small JV, and
we are the minority partner without operat-
ing responsibilities.”
But Darnell, who led the formation of the
JV, was able to provide some persuasive
arguments for the partnership. A major one
was enhancing Cargill’s connection to
diverse suppliers. A third generation
Mexican American, Cruz Gooch has her
company certified as minority-owned by the
National Minority Supplier Development
Council (NMSDC).
“Customers are telling us that we need to
help them connect with the whole diversity
of the supplier base,” Darnell explains.
“When many companies look at their suppli-
er base, they see nothing like the diversity
of their customers. About one-third of U.S.
consumers are minorities, and most suppli-
er bases are not even close to that.”
The JV also provides Cargill with capabil-
ities for serving the booming Hispanic foods
market. Just for tortillas, the market is over
$6 billion and growing at a rate of almost
9 percent per year. The “wrap” sandwich
craze has expanded the tortilla market
beyond Hispanic foods. Even countries like
Japan and China are starting to show a
growing demand for tortillas.
“The growth prospects are exciting,” says
Cruz Gooch, who grew up in a family of 10
children in St. Paul, Minnesota, helping her
mother make tortillas and other Mexican
specialties. In 1985, she founded Cruz
Mexican Foods with her husband and
parents. Contracting for production, she
started by selling tortillas one case at a time
to supermarkets, personally visiting more
than 50 stores a week to take orders.
Developing a reputation for quality, the
Cruz family’s tortilla business struck a distri-
bution agreement and expanded to
21 states. In the early 1990s, the business
attracted the attention of McDonald’s,
which was in the process of developing a
menu item called the Breakfast Burrito™.
“McDonald’s contacted us because they
liked our tortilla,” says Cruz Gooch. “The
fact that people of Mexican descent owned
the company also seemed very important to
them. McDonald’s has been very loyal to us.”
Although Cruz Gooch sold
the business she founded
with her parents, she stayed
in the tortilla business as a
McDonald’s supplier. In 2005,
she decided that manufac-
turing would be crucial to
the long-term health of her
business. McDonald’s was
consolidating suppliers and
creating more stringent
specifications for its tortillas.
Relying on someone else to
make her tortillas simply
didn’t provide enough
control.
Cruz Gooch had never done food manu-
facturing, so she looked for advice. She
decided to contact someone she met while
serving on the board of Second Harvest
Food Bank. That someone was Mike Luker,
president of SFF.
The JV idea
Somewhat to the surprise of both parties, it
turned out that Cargill had quite a bit in
common with the family-owned tortilla
company. Both had McDonald’s as a cus-
tomer and even provided ingredients for the
same McDonald’s product. Because the
strong McDonald’s culture extends to its
suppliers, they shared a similar customer-
service philosophy.
Discussions with Luker on manufacturing
evolved into the idea of a joint venture.
“Cargill had a closer relationship with
A DREAM COME TRUECargill’s new tortilla joint venture gives the company the right accent for approaching
a major segment of the U.S. food industry. BY PAUL DIENHART PHOTOS BY STEVE WOIT
SUPPL IER D IVERSITY PROFILE
L-R: Dennis Darnell,vice president ofbusinessdevelopment forSunny Fresh Foods;Cathy Cruz Gooch;president of CatalliaFoods; and MikeLuker, president ofSunny Fresh Foods,at the Catallia Foodsproduction facility inEagan, Minnesota.
34 C A R G I L L N E W S A D R E A M C O M E T R U E
McDonald’s than we did,” says Cruz Gooch.
“Sunny Fresh gave us insight on who to talk
to in McDonald’s to get support for our
move into manufacturing. McDonald’s
response to the idea was: ‘By all means.’”
“Sunny Fresh’s concern with any joint
venture is whether it will be a shock to our
culture,” Darnell says. “Catallia Mexican Foods
has been a great fit because we share the
same core values and concern for quality.”
On her side, Cruz Gooch felt comfort-
able with Cargill. “We had visited Cargill
because they’ve hosted MMSDC
(Minnesota Minority Supplier Development
Council) meetings at their headquarters,”
she says. “We already looked at Cargill as a
supporter of minority businesses. It has
been a very cooperative relationship.”
For the new manufacturing operation,
Cargill was able to provide advice on every-
thing from ventilation systems to regulatory
agencies. “We know that kind of thing well,”
says Darnell. “Now we have a chance to
learn a lot more about Hispanic foods. Cathy
is a chef and culinary expert with years of
experience in Hispanic foods, so she has a
lot to teach us.”
In only four months, the former trucking
warehouse was converted to a tortilla plant.
Brand new tortilla-making equipment arrived
from California. Concrete walls were covered
in washable panels, and the floor was painted
with gleaming epoxy paint. The plant imme-
diately earned very high scores in audits by
McDonald’s and regulatory agencies.
While Cargill provided advice and financ-
ing, Cruz Gooch and her team did the work.
Harold Gooch, Cathy’s husband and finan-
cial officer in the business, even rolled up
his sleeves and painted the reception area
and conference room.
Since opening in March, Catallia has
added a second shift and is up to 35
employees. A new “snack wrap” promotion
that McDonald’s launched in August is one
reason behind the rapid growth.
Minority perspective
Warm, vibrant colors and Mexican artwork
in the reception area help celebrate
Catallia’s Hispanic heritage. No beige walls
for this business. “We worked with a
Mexican architect with an office in
Minneapolis to give the building a Mexican
feel,” says Cruz Gooch. “I always want to
work with any minority-owned businesses
that we can. That includes our IT provider
and our office services company.”
Cruz Gooch also takes pride in having many
Hispanic employees, including several in man-
agement. On a tour of the plant, she warmly
greets every employee by name, talking to
some in English and others in Spanish.
“We want to be a good role model for
other minority businesses,” Cruz Gooch
says. “It’s nice when you can work with
people who understand tortillas and the
Hispanic culture. I think it brings a level of
comfort to the workforce. People are proud
to work here.”
While the JV has rewarded Cruz Gooch
with increased business, Cargill has gained a
model to learn about the Hispanic foods
market.
“One thing we’ve learned about Hispanic
food suppliers is that there is a lot of cus-
tomer loyalty for regional suppliers,” Darnell
says. “Several big companies have found
that it’s not easy to carve out a place in this
market. We have the advantage of partner-
ing with a company that already is estab-
lished in the Hispanic market.”
With flour milling, refined oil and special-
ty food ingredient businesses, Cargill brings
many capabilities that could benefit Catallia.
The business is investigating flour and
shortening from Cargill, and it has switched
to Cargill’s vital wheat gluten from Germany
because it offers the best performance.
“We already have many connections to
Cargill, and there is more that we’d like to
do,” says Harold Gooch.
“Tortillas wrap around a lot of Hispanic
foods,” Darnell says, “so there are many
potential opportunities. Our plan is to con-
tinue to build capacity in the business and
then look to entering other markets for
Hispanic foods.”
Thanks in part to Catallia Mexican Foods,
Cargill can approach a major segment of the
food market while speaking with the right
accent – another demonstration that adding
diversity is good for business as well as for
society. �
Callout:
SUPPL IER D IVERSITY PROFILE
Lesvia Julio inspects tortillas asthey come out of the oven.Catallia Foods prides itself onhaving many Hispanicemployees, including many inmanagement.
35C A R G I L L N E W SF E A T U R E 35A D R E A M C O M E T R U E
“Customers are telling usthat we need to help themconnect with the wholediversity of the supplierbase.”Dennis Darnell, Sunny Fresh Foods
continued from page 32
“The reality is that many minority- and
women-owned companies are small and
often lack capacity,” Thomas says. “In order
for them to grow and be able to meet the
needs of a large corporation like Cargill, we
have to become creative in finding ways to
assist them to grow and to provide products
or services that meet Cargill’s needs.”
When Cargill acquired Plantation Foods, a
turkey slaughtering and processing opera-
tion in Waco, Texas, it also “acquired” a
Native-American-owned supplier to the
business: Chief Adhesives, Inc. Chief
Adhesives had been supplying Plantation
Foods with hot-melt adhesives for sealing
cartons and cases. Chief Adhesives wasn’t
prepared to handle Cargill’s needs at the
time. But, instead of replacing them, Cargill
worked with them to increase their capacity.
“That was the break we needed,” says
Bruce Shaw, Chief Adhesives vice president.
“Cargill’s business is very important to us
today, and the relationship between our
companies has grown.”
According to Shaw, working with Cargill
made Chief Adhesives a better company by
demanding that they bring value to the rela-
tionship. All Cargill sup-
pliers, including diverse
suppliers, must earn the
business with competi-
tive prices, quality prod-
ucts and services, tech-
nical support and
customer service –
among other criteria.
Thomas believes that
Cargill’s efforts to work
with diverse suppliers
offer as much advan-
tage to Cargill as to the
supplier. “Doing busi-
ness with diverse sup-
pliers provides us with a more competitive
supplier base, as well as access to more prod-
ucts, services, innovation and strategic part-
ners,” he says. “Supplier diversity is simply
good business.” �
Visit Cargill’s supplier diversity Web site
at: http://www.cargill.com /about/diversi-
ty /supplierdiversity.htm
36 C A R G I L L N E W S S U P P L I E R D I V E R S I T Y I S G O O D B U S I N E S S
PORK CHILE COLORADO(SERVES SIX)
Cathy Cruz Gooch (above) runs Catallia Mexican Kitchens, a tortilla business in
which Cargill is a minority owner. One of the things that Cargill likes about the
partnership is access to Cruz Gooch’s culinary experience as a chef and expert
in Mexican cuisine. Hispanic foods are getting ever more popular in the United
States, and many of Cargill’s customers want a supplier who can offer expertise
in this area. So, test Cathy’s expertise by making her pork stew. Made with fresh
bell peppers and green chiles, this tasty dish offers great flavor and aroma.
Ingredients:
R E C I P E
1-1/2 pounds of lean pork shoulder
cut into one-inch cubes
2 tablespoons olive oil
1 cup chopped onion
1/2 teaspoon crushed garlic
1 cup green bell pepper seeded
and chopped
2 large cans whole tomatoes
(28 oz. each)
4 oz. Anaheim chiles, seeded and
chopped*
1/2 teaspoon sugar
1/2 teaspoon cloves
2 teaspoons ground cumin
Salt to taste
Directions:
In large skillet, brown meat in heated oil. Sprinkle lightly with coarse salt
(preferably Cargill’s Diamond Crystal Kosher Salt™). Add chopped onion and
garlic, and cook until juices form. Transfer meat and juices into medium-size
stockpot over medium heat. Combine and add bell peppers, tomatoes, green
chiles, sugar, cloves and cumin and stir. Cover and bring to a boil. Reduce heat
and simmer for approximately 1-1/2 hours, stirring occasionally until meat is
very tender. Salt to taste.
Serve with warm tortillas.
* Canned chiles may be substituted for fresh chiles when not in season.
Tim Thomas, director of supplierdiversity.
ASIAYoung Ho Kim, Cargill Animal Nutrition, Fushun, China (26) Conrad Silitonga, Cargill Animal Nutrition, Gunung, Indonesia (26)
EUROPEFabrizio Accorsi, Cargill Sweeteners Europe, Castelmassa, Italy (31) Jelle Adriaansen, Cargill G&O Supply Chain Europe, Amsterdam, Netherlands (28) Ronald Albrecht, Cargill G&O Supply Chain Europe, Amsterdam, Netherlands (29) Louise Althaus, Cargill World Trading Unit, Geneva, Switzerland (31) Francisco Alvarez, Cargill Animal Nutrition, Dos Hermanas, Spain (37) Peter John Antram, Cargill Sweeteners Europe, Mechelen, Belgium (28) Debora Appel, Corporate Function, Amsterdam, Netherlands Gianpiero Ardemagni, Cargill Sweeteners Europe, Castelmassa, Italy (29) Albertus Petrus Jacomina Augustijn, Cargill Sweeteners Europe, Bergen op Zoom,Netherlands (27) Claudio Bacilieri, Cargill Sweeteners Europe, Castelmassa, Italy (27) Johannes Aloisius Bartholomeus Balm, Cargill Cocoa & Chocolate, Wormer,Netherlands (28) Leendert Bergwerf, Cargill Refined Oils Europe, Rotterdam, Netherlands (38) Pietro Bernini, Cargill Sweeteners Europe, Castelmassa, Italy (38) Francis Edward Bilham, Cargill Sweeteners Europe, Tilbury, Canada (25) Rene Paul Boersma, Cargill Refined Oils Europe, Rotterdam, Netherlands (32) Irene Boon-Altink, Cargill Cocoa & Chocolate, Wormer, Netherlands (28) Paul John Brooke, Sun Valley Europe, Allensmore (27) Johannes Wilhelmus Buitenhuis, Cargill Cocoa & Chocolate, Wormer, NetherlandsAlain Burlaud, Cargill G&O Supply Chain Europe, Saint-Germain-En-Laye, France (31) Cornelis Alphons Elisabeth Burm, Cargill Sweeteners Europe, Sans van Gent,Netherlands (26) Patrick Buysse, Cargill Sweeteners Europe, Sans van Gent, Netherlands (29) Alfonso Caro Plata, Cargill G&O Supply Chain Europe, Sant Cugat del Valles, Spain (26) Luis Javier Carrasco Hernandez, Cargill G&O Supply Chain Europe, Reus, Spain (40) Manuel Carretero, Cargill G&O Supply Chain Europe, San Jeronimo, Spain (31) Andres Castellano Aranda, Cargill G&O Supply Chain Europe, Reus, Spain (29) Miguel Angel Castro Monge, Cargill G&O Supply Chain Europe, San Jeronimo,Spain (26) Marc Achiel Valere Cauwels, Cargill Sweeteners Europe, Sans van Gent,Netherlands (27) Claudio Cavallari, Cargill Sweeteners Europe, Castelmassa, Italy (31) Olga Ceamanos Montero, Law, Martorell, Spain (29) M. Luisa Chillida Rabadá, Cargill G&O Supply Chain Europe, Reus, Spain (31) Michèle Cometti Von Kaenel, Cargill Ocean Transport, Geneva, Switzerland (30) Theo Coppens, Cargill Malt Eurasia, Herent, Belgium (35) Ian Garry Cox, Sun Valley Europe, Hereford, England (37) Jose Maria Cubero Falcon, Cargill Bottled Oil Europe, Sevilla, Spain (31) Andre Danielou, Cargill G&O Supply Chain Europe, Brest, France (29) Roland Marie Camiel de Bock, Cargill Sweeteners Europe, Sans van Gent,Netherlands (26) Sebastiaan Jan de Bruijn, Cargill Sweeteners Europe, Bergen op Zoom,Netherlands (27) Frank Joseph Odiel Marie de Buck, Cargill Sweeteners Europe, Sans van Gent,Netherlands (27) Lucas Marinus de Glas, Cargill G&O Supply Chain Europe, Amsterdam, Netherlands (29) Antonio de Quero Lozano, Cargill G&O Supply Chain Europe, San Jeronimo, Spain (30) Edward de Tollenaere, Cargill Sweeteners Europe, Mechelen, Belgium (27) Ronald Johannes Deeterink, Cargill G&O Supply Chain Europe, Amsterdam,Netherlands (26) Adriaan Dek, Cargill Sweeteners Europe, Bergen op Zoom, Netherlands (27) Wilhelmina Maria Dekker, Cargill Sweeteners Europe, Sans van Gent, Netherlands (28) Cornelis Theodorus Antonius Gerardus Denissen, Cargill Sweeteners Europe,Bergen op Zoom, Netherlands (26) Hendrik Jan Detmers, Cargill Cocoa & Chocolate, Wormer, Netherlands (34) Krzysztof Dmuchala, Cargill Animal Nutrition, Ropczyce, Poland (28) Kevin Driver, Cargill Sweeteners Europe, Tilbury, CanadaDiva Duffini, Cargill Sweeteners Europe, Castelmassa, Italy (38) Cyril James Fleet, Sun Valley Europe, Hereford, England (33) Cornelis Petrus Martinus Floren, Cargill Sweeteners Europe, Sans van Gent,Netherlands (31)
Maria Rosa Anna Franchi, Cargill Sweeteners Europe, Castelmassa, Italy (35) Manuel Francisco C. Rodrigues, Cargill Animal Nutrition, Lisbon, Portugal (34) Johannes Willem Franssen, Cargill G&O Supply Chain Europe, Amsterdam,Netherlands (31) Hubert Furer, Accounting, Geneva, Switzerland (27) Angelo Galletti, Cargill Animal Nutrition, Pieve Emanuele-Milano, Italy (28) Marcel Galliot, Cargill G&O Supply Chain Europe, St. Nazaire, France (36) Dignus Johannes Ganseman, Cargill Sweeteners Europe, Bergen op Zoom,Netherlands (27) Isabel Garrido Marchal, Cargill G&O Supply Chain Europe, Sant Cugat del Valles,Spain (35) Marcel Hubert Leonard Genders, Cargill G&O Supply Chain Europe, Amsterdam,Netherlands (27) Aldo Ghiraldini, Cargill Sweeteners Europe, Castelmassa, Italy (27) Klaus Gommer, Sun Valley Europe, Denekamp, Netherlands (26) Francisco Gonzalez Jimeno, Cargill Animal Nutrition, Silla, Spain (26) Antonio Guasch Olle, Cargill G&O Supply Chain Europe, Reus, Spain (40) Andries Johannes Gunst, Cargill Texturizing Solutions, Amsterdam, Netherlands (27)Jesus Guzman Fernandez, Cargill G&O Supply Chain Europe, Reus, Spain (32) Willem Frederik Hartgers, Cargill Texturizing Solutions, Amsterdam, Netherlands (31) Jos Harthoorn, Corporate Function, Amsterdam, Netherlands (26) Mary Ann Helme, Sun Valley Europe, Hereford, England (26) Rony Heynze, Cargill Sweeteners Europe, Sans van Gent, NetherlandsHermanus Cornelis Hooft, Cargill G&O Supply Chain Europe, Amsterdam,Netherlands (35) John Stanley Hoskin, Cargill Sweeteners Europe, Tilbury, Canada (29) Reynold Anthony Hudson, Cargill G&O Supply Chain Europe, Amsterdam,Netherlands (32) John Arthur Hyde, Sun Valley Europe, Hereford, England (39) Josephus Petrus Cornelis Jansen, Cargill Sweeteners Europe, Bergen op Zoom,Netherlands (27) Trevor AlanJenkins, Sun Valley Europe, Hereford, England (27) Guillermo Jimenez Dugo, Cargill Animal Nutrition, Dos Hermanas, Spain (30) Amanda Jayne Jones, Sun Valley Europe, Hereford, England (26) Max Walter Kiemfoek Jong a Lock, Cargill G&O Supply Chain Europe, Amsterdam,Netherlands (26) Johan Alfred Marie Kamoen, Cargill Sweeteners Europe, Sans van Gent,Netherlands (26) Serge Kerneur, Cargill G&O Supply Chain Europe, Montoir-De Bretagne, France (29) Tonny Martha Kersbulck, Cargill Sweeteners Europe, Sans van Gent, Netherlands (29) Michel Kervella, Cargill G&O Supply Chain Europe, Brest, FranceTatiana Fedorovna Krasikova, Cargill G&O Supply Chain Europe, Krasnodar, Russia (27) Marcus Bernardus Kruidenberg, Cargill Refined Oils Europe, Rotterdam,NetherlandsDirk Kwak, Cargill G&O Supply Chain Europe, Amsterdam, Netherlands (28) Nii Adotey Langdon, Cargill G&O Supply Chain Europe, Amsterdam, Netherlands (26) Jean-Colin Latour, Cargill G&O Supply Chain Europe, Geneva, Switzerland (34) Laurent Le Roux, Cargill G&O Supply Chain Europe, Brest, France (29) Hendrik Lich, Cargill Sweeteners Europe, Bergen op Zoom, Netherlands (26) Berend Jan Lindeman, Cargill Sweeteners Europe, Mechelen, Belgium (26) Jaime Lotra, Cargill Animal Nutrition, Lisbon, Portugal (38) Francois Louvet, Cargill G&O Supply Chain Europe, St. Nazaire, France (27) Alexander Clifford Dennis Lowe, Sun Valley Europe, Hereford, England (27) Jose Carlos Marques Da Costa, Cargill Animal Nutrition, Lisbon, Portugal (38) Stephen Mcgill, Sun Valley Europe, Hereford, England (29) David Mears, Cargill Sweeteners Europe, Tilbury, Canada (25) Mariano Moreno Martinez, Cargill Animal Nutrition, Silla, Spain (30) Paul Louis Naar, Cargill Cocoa & Chocolate, Wormer, Netherlands (29) Antonio Ocaña Galvez, Cargill G&O Supply Chain Europe, San Jeronimo, Spain (38) Kors Oosterlee, Cargill Refined Oils Europe, Rotterdam, Netherlands (25) Assumpta Orodea Sabas, Human Resources, Martorell, Spain Heinrich Otten, Cargill Sweeteners Europe, Bergen op Zoom, Netherlands (27) Antonio Pedro O. Prazeres, Cargill Animal Nutrition, Lisbon, Portugal (34) Luciano Pellicciari, Cargill Sweeteners Europe, Castelmassa, Italy (31) Jose Peñalosa Suarez, Cargill G&O Supply Chain Europe, San Jeronimo, Spain (26) Jean Michel Pennors, Cargill G&O Supply Chain Europe, Brest, France (29) Angeline Phillips, Sun Valley Europe, Hereford, England (29)
37C A R G I L L N E W S2 5 Y E A R S
2 5 Y E A R SEditor’s note: This issue concludes our catch-up on recognizing employees with 25 years ofservice with Cargill. Starting in January, the listwill be composed of new 25-year employees.
38 C A R G I L L N E W S 2 5 Y E A R S
2 5 Y E A R S
38 2 5 Y E A R S
Paolo Pirani, Cargill Sweeteners Europe, Castelmassa, Italy (31) Rafael Pizarro Garcia, Cargill G&O Supply Chain Europe, San Jeronimo, Spain (33) Salvador Ramon Riera, Cargill Animal Nutrition, Silla, Spain (30) Louisette Raphoz, Cargill Ocean Transport, Geneva, SwitzerlandSergio Ravagnani, Cargill Sweeteners Europe, Castelmassa, Italy (31) Fernando Redondo Aynes, Cargill G&O Supply Chain Europe, Sant Cugat del Valles,Spain (32) Anton Peter Johannes Reilman, Cargill Refined Oils Europe, Rotterdam, Netherlands (30) Ramon Ribe Sarda, Cargill G&O Supply Chain Europe, Reus, Spain (26) Jose Maria Ricoma Virgili, Cargill G&O Supply Chain Europe, Sant Cugat del Valles,Spain (41) Antonio Rodriguez Bertran, Cargill G&O Supply Chain Europe, Reus, Spain (34) Felipe Romero Fdez.-Cabrera, Cargill Malt Eurasia, Madrid, Spain (44) Juan Rota Casellas, Cargill Animal Nutrition, Sant Cugat del Valles, Spain (35) Luis Manuel Santos Avelar, Cargill Animal Nutrition, Lisbon, Portugal (43) Frans Johan Sarneel, Cargill Texturizing Solutions, Sans van Gent, Netherlands (34) Henricus Theodorus Matheus Scheijven, Cargill Refined Oils Europe, Rotterdam,NetherlandsGiannino Segala, Cargill Sweeteners Europe, Castelmassa, Italy (31) Jaume Simo Soler, Cargill Animal Nutrition, Silla, Spain (33) Shirley Ann Smith, Sun Valley Europe, Hereford, England (34) Siska Dina Stegenga, Corporate Function, Amsterdam, Netherlands (29) Margaret Studer, Human Resources, Mechelen, Belgium (30) Johannes Joel Swart, Cargill G&O Supply Chain Europe, Amsterdam, Netherlands (30) Wim Tazelaar, Cargill Sweeteners Europe, Sans van Gent, Netherlands (28) Everhardus Francois Temminck, Cargill Sweeteners Europe, Bergen op Zoom,Netherlands (27) Pedro Torrubiano Molina, Cargill G&O Supply Chain Europe, Barcelona, Spain (37) Dudley Michael Tuppin, Tax, Cobham, England (28) Mateo Vadell Llull, Cargill Animal Nutrition, Felanitx, Spain (28) Eddy Jacobus Dick van Bergen, Cargill Cocoa & Chocolate, Wormer, NetherlandsCornelis van Broekhoven, Cargill Sweeteners Europe, Bergen op Zoom,Netherlands (27) Georges van de Walle, Cargill Sweeteners Europe, Sans van Gent, Netherlands (36) Martin Henri van de Walle, Cargill Sweeteners Europe, Sans van Gent, Netherlands (29) Adriaan Jacobus van den Berge, Cargill Sweeteners Europe, Bergen op Zoom,Netherlands (27) Cornelis van den Berge, Cargill Sweeteners Europe, Bergen op Zoom, Netherlands (27) Dirk van den Bosch, Cargill Cocoa & Chocolate, Wormer, Netherlands (29) Erik Theophiel Louisa van den Branden, Cargill Sweeteners Europe, Sans vanGent, Netherlands (31) Johannes Elizabeth Marie van der Riet, Cargill Sweeteners Europe, Bergen opZoom, Netherlands (26) Freddy Alphons Augusta van der Sijpe, Cargill Sweeteners Europe, Sans van Gent,Netherlands (34) Hilbrand van der Zwart, Cargill Cocoa & Chocolate, Zaandam, Netherlands (28) Johannes van Helden, Cargill G&O Supply Chain Europe, Amsterdam, Netherlands Jan van Ijsseldijk, Cargill Sweeteners Europe, Bergen op Zoom, Netherlands (27) Augustinus Gerardus Josef Maria van Ravesteyn, Cargill Sweeteners Europe,Bergen op Zoom, NetherlandsGerrit Jan van Riessen, Cargill G&O Supply Chain Europe, Amsterdam, Netherlands Adrianus Wilhelmus van Tilburg, Cargill Sweeteners Europe, Bergen op Zoom,Netherlands (27) Robertus Martinus Maria van Tongeren, Cargill G&O Supply Chain Europe,Amsterdam, Netherlands (30) Arie van Vugt, Cargill G&O Supply Chain Europe, Amsterdam, Netherlands (30) Cornelis Hendricus Jozef van Wieringen, Accounting,Amsterdam, Netherlands (31) Maryse Vanhee, Cargill Petroleum, Geneva, Switzerland (34) Mathys Maria Verhaegh, Cargill Malt Eurasia, Swalmen, Netherlands (25) Rijndert Anton Vermeulen, Cargill Texturizing Solutions, Amsterdam, Netherlands (28) Wilhelmus Cornelis Vernooij, Cargill G&O Supply Chain Europe, Amsterdam,Netherlands (28) Theo Leopold Verstraete, Cargill Sweeteners Europe, Sans van Gent, Netherlands (29) Eric Johannes Eduardus Verwulst, Cargill Sweeteners Europe, Sans van Gent,Netherlands (35) Giovanni Viani, Cargill Sweeteners Europe, Castelmassa, Italy (26) Johannes Gerardus Vonk, Cargill Cocoa & Chocolate, Zaandam, NetherlandsJozef Matheus Gerardus Weijers, Cargill Sweeteners Europe, Bergen op Zoom,Netherlands (27) Johannes Wilhelmus Maria Gerardus P. Wessing, Cargill G&O Supply ChainEurope, Amsterdam, Netherlands (26) Audrey Wheeler, Sun Valley Europe, Hereford, England (26) Mauro Zaghi, Cargill Sweeteners Europe, Castelmassa, Italy (31) Bouke Piebe Zoethout, Corporate Function, Amsterdam, Netherlands (30)
BRAZILGabriel Calcada Rodrigues, Cargill Sugar, Santos, Brazil (27) Rosana Maria Camargo, Cargill Starches & Sweeteners Brazil, Sao Paulo, Brazil (28) Sidney Tadeu da Paixao Branco, Purchasing, Sao Paulo, Brazil (37) Benedito Lopes da Silva, Cargill Cocoa Brazil, Ilheus, Brazil (26) Wilma Pererira da Silva Lira, Cargill Cocoa Brazil, Sao Paulo, Brazil (28) Osvaldo Siqueira de T Leme, Cargill G&O Supply Chain Brazil, Guaira, Brazil (26) Alaci Justino de Oliveira, Cargill Foods Brazil, Rio de Janeiro, Brazil (34) Mario do Carmo, Cargill G&O Supply Chain Brazil, Paranagua, Brazil (28) Antenor Pereira Giovannini, Cargill G&O Supply Chain Brazil, Santarem, Brazil (37) Jose Carlos Ribeiro, Cargill G&O Supply Chain Brazil, Primavera do Leste, Brazil (31) Jose Airto Rodrigues, Cargill Cocoa Brazil, Ilheus, Brazil (26)
LATIN AMERICACarlos Horacio Bustamante, Cargill Malt Americas, Tres Arroyos, ArgentinaJesus Cardona Diaz, Cargill Animal Nutrition, Guadalajara, Mexico (26) Jesus Delgado Lopez, Cargill Animal Nutrition, Obregon, Mexico
NORTH AMERICAMichael R Anderson, Cargill G&O Supply Chain North America, West Fargo, NorthDakotaGregory A Arnett, Cargill Corn Milling North America, Dayton, OhioMary K Blevins, Cargill Value Added Meats, Nebraska City, NebraskaWilliam B Booker, Cargill DSO North America, Wichita, KansasJohn K Bower, Cargill Animal Nutrition, Binghamton, New YorkRicky E Bowman, Cargill Corn Milling North America, Memphis, TennesseeRosa Castro, Cargill Beef, Friona, TexasBoney C Chavez, Cargill Beef, Friona, TexasDouglas J DeWitt, Cargill DSO North America, Gainesville, GeorgiaJanet E Dostal, Cargill Beef, Schuyler, NebraskaNeil Ellis, Willbur Chocolate, Lititz, PennsylvaniaCalvin C Fleischmann, Cargill Animal Nutrition, Kennedy, New YorkJorge Flores, Cargill Beef, Friona, TexasWilliam E Foitek, Cargill Value Added Meats, Waco, TexasRobert G Fridley, Cargill G&O Supply Chain North America, Sidney, OhioIldefonso Garcia, Cargill Beef, Friona, TexasLora K Graves, Cargill Animal Nutrition, Rowan, IowaJuan G Herrera, Cargill Beef, Friona, TexasGreg S Hert, Cargill Animal Nutrition, Billings, MontanaAnthony J Kain Jr, Cargill G&O Supply Chain North America, Westwego, LouisianaSusie Kopecky, Cargill Texturizing Solutions, Waukesha, WisconsinLinda D Lewis, Horizon Milling LLC (JV), Saginaw, TexasMarcial V Limas, Cargill Beef, Friona, TexasHarry D Maclin, Cargill Corn Milling North America, Memphis, TennesseeRobert C Mattock, Cargill Salt, Cincinnati, OhioElaine K McKitterick, Corporate Center, Minneapolis, MinnesotaSamuel R Miller, Cargill Juice North America, Frostproof, FloridaJorge O Miranda, Cargill Animal Nutrition, Mineola, TexasLinda Moralez, Cargill Beef, Plainview, TexasShane R Neer, Cargill Juice North America, Frostproof, FloridaEdward J Nicosia, Cargill G&O Supply Chain North America, Westwego, LouisianaNoel Ortiz, Cargill Beef, Friona, TexasMatthew Oswald, Cargill Flavor Systems, Cincinnati, OhioNorman R Peake, Cargill DSO North America, Wichita, KansasJames E Profitt, Cargill Taylor Beef, Wyalusing, PennsylvaniaHelen L Sitas, Cargill Taylor Beef, Wyalusing, PennsylvaniaDewayne C Smith, Cargill Corn Milling North America, Memphis, TennesseeJeanne Y Smith, Law, Minneapolis, MinnesotaJoe Solis, Cargill Beef, Plainview, TexasKhamla Somlitta, Cargill Beef, Friona, TexasBrenda K Spence, Cargill Juice North America, Frostproof, FloridaBonnie Y Stephenson, Cargill Value Added Meats, Wichita, KansasHoward Stone, Cargill Value Added Meats, Waco, TexasCarolyn R Taylor, Cargill Cotton, Cordova, TennesseeDonna L Teuscher, Cargill DSO North America, Fullerton, CaliforniaLucio C Torres, Cargill Beef, Friona, TexasJeffrey L Turner, Cargill Salt, Cincinnati, OhioMarjorie A Vanicek, Cargill Beef, Schuyler, NebraskaEmlyn Williams, Willbur Chocolate, Lititz, PennsylvaniaMichael Yoder, Willbur Chocolate, Lititz, PennsylvaniaLarry Zug, Willbur Chocolate, Lititz, Pennsylvania
39C A R G I L L N E W SL A S T W O R D
IN OUR OWN WORDSThis issue of Cargill News comes with a DVD entitled
“In Our Own Words,” which was filmed at Cargill facili-
ties around the world. Readers of this page will have
seen some of these words before. The past three issues
of the magazine have featured excerpts of employee
comments on trust, freedom and responsibility – three
of the big reasons why Cargill employees around the
world like working for the company.
Filmed in the native languages of employees, the 12-
minute DVD has subtitles that can be selected in
several languages. “What is striking about the film is
that, whatever the language or culture, Cargill employ-
ees seem to appreciate the same things about the
company,” said Dave Larson, corporate vice president.
In a Directions column earlier this year, Larson
described the research that showed employees largely
share a view of the elements that engage them and
differentiate Cargill from other employers.
“We hope employees enjoy this film and that it
resonates with some of the ways they feel about
Cargill,” Larson said. “Our goal is to build on what
we’re doing right in the areas of trust, freedom and
responsibility – all grounded in respect. Everyone at
Cargill can help with this and offer ideas. The Cargill
the employees describe on this DVD is the company
we want to be for all 149,000 of us.”
L A S T W O R D