cover story: cargill’s window on the world in genevacargill’s strategic intent in action, as...

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COVER STORY: Cargill’s Window on the World in Geneva Inside this issue: • Sweeteners in China • Poland’s Door-to-Door Feed Solution • CLT Forum Measures Strategic ProgressCBuilding Volume 69, No. 4 / Jan.– Feb. 2005 Special in this Issue The Cargill DVD: “In Our Own Words” uilding Volume 71, No. 3 / Nov.– Dec. 2006

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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

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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

13C A R G I L L N E W SN O T J U S T F O R S H O W

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.

20 C A R G I L L N E W S F E A T U R E20 F E A T U R E 20F E A T U R E

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