The Power of Owning Food

Pop quiz...

If you bought $100,000 of bulk raw honey two years ago, how much could you

sell it for today?

$171,000

What if you bought $100,000 of other bulk foods back in

August 2011?

Yellow Corn $121,000Red Lentils $131,000White Rice $157,000Red Wheat $129,000

White Wheat$126,000

Pinto Beans:

$225,000

Why August 2011?

That’s when Bulk Food International was formed.

We are currently the only vehicle for the general public to buy store and sell bulk food.

Major Factors

- Supply and Demand- 2007- China and Cargill take-over

People Need

to Eat

Farmers

Supply vs Demand

SUPPLY

Farm land Disappearing World-wide.

Year Beans % Oats % Potatoes % Rice % Wheat % Corn %1990 32,379   357,654   402,110  156,088  2,729,778  73,075  1991 33,765 4.3% 243,851 -31.8% 417,622 3.9% 159,367 2.1% 1,980,139 -27.5% 74,962 2.6%1992 22,615 -33.0% 294,229 20.7% 425,367 1.9% 179,658 12.7% 2,466,798 24.6% 78,146 4.2%1993 21,862 -3.3% 206,731 -29.7% 430,349 1.2% 156,110 -13.1% 2,396,440 -2.9% 69,756 -10.7%1994 28,950 32.4% 228,844 10.7% 469,425 9.1% 197,779 26.7% 2,320,981 -3.1% 78,231 12.1%1995 30,689 6.0% 161,094 -29.6% 445,099 -5.2% 173,871 -12.1% 2,182,708 -6.0% 70,531 -9.8%1996 27,912 -9.0% 153,245 -4.9% 499,254 12.2% 171,599 -1.3% 2,277,388 4.3% 78,251 10.9%1997 29,370 5.2% 167,246 9.1% 467,091 -6.4% 182,992 6.6% 2,481,466 9.0% 78,725 0.6%1998 30,418 3.6% 165,768 -0.9% 475,667 1.8% 184,443 0.8% 2,547,321 2.7% 78,502 -0.3%1999 33,146 9.0% 145,628 -12.1% 478,093 0.5% 206,027 11.7% 2,295,560 -9.9% 76,524 -2.5%2000 26,543 -19.9% 149,165 2.4% 513,544 7.4% 190,872 -7.4% 2,228,160 -2.9% 78,522 2.6%2001 19,610 -26.1% 117,602 -21.2% 437,673 -14.8% 215,270 12.8% 1,947,453 -12.6% 74,910 -4.6%2002 30,312 54.6% 116,002 -1.4% 458,171 4.7% 210,960 -2.0% 1,605,878 -17.5% 76,452 2.1%2003 22,492 -25.8% 144,383 24.5% 458,199 0.0% 199,897 -5.2% 2,344,415 46.0% 77,527 1.4%2004 17,743 -21.1% 115,695 -19.9% 455,806 -0.5% 232,362 16.2% 2,156,790 -8.0% 79,732 2.8%2005 26,576 49.8% 114,859 -0.7% 423,788 -7.0% 222,833 -4.1% 2,103,325 -2.5% 81,047 1.6%2006 24,155 -9.1% 93,522 -18.6% 440,698 4.0% 194,585 -12.7% 1,808,416 -14.0% 77,125 -4.8%2007 25,586 5.9% 90,430 -3.3% 444,875 0.9% 198,388 2.0% 2,051,088 13.4% 92,580 20.0%2008 25,558 -0.1% 89,135 -1.4% 415,055 -6.7% 203,733 2.7% 2,499,164 21.8% 84,535 -8.7%2009 25,427 -0.5% 93,081 4.4% 432,601 4.2% 219,850 7.9% 2,218,061 -11.2% 85,095 0.7%2010 31,801 25.1% 81,190 -12.8% 404,273 -6.5% 243,104 10.6% 2,206,916 -0.5% 87,013 2.3%2011 19,890 -37.5% 53,649 -33.9% 429,647 6.3% 184,941 -23.9% 1,999,347 -9.4% 89,924 3.3%2012 31,925 60.5% 64,024 19.3% 462,766 7.7% 199,543 7.9% 2,266,027 13.3% 94,754 5.4%2013 24,486 -23.3% 65,879 2.9% 437,483 -5.5% 189,886 -4.8% 2,129,695 -6.0% 93,924 -0.9%

23 Yr Change -24.4%

-81.6% 8.8% 21.7% -22.0%

28.5%

Crop Production is a dism

al

failure!

Drought 2012

Drought 2013

Drought 2014 YTD

DEMAND

What is the funny thing about food?

Remember this simple fact:

The demand for ALL other products and services will ebb

and flow with the economy, except FOOD and WATER.

More people = More demand

Year World Pop % change US Pop % change

1990 5,287,869,228   249,622,814  

2013 7,098,495,231 34%    316,148,990  27%

Year Beans % Oats % Potatoes % Rice % Wheat % Corn %1990 32,379   357,654   402,110  156,088  2,729,778  73,075  2013 24,486 -23.3% 65,879 2.9% 437,483 -5.5% 189,886 -4.8% 2,129,695 -6.0% 93,924 -0.9%

23 Yr Change -24.4%

-81.6% 8.8% 21.7% -22.0%

28.5%

Same 23 year period

2007

The modern concept of Strategic Food Reserves was

first proposed in the 30’s, then further established by

Roosevelt. Then, in 2007 the US government monetized its entire food reserves with the ending of the 2002 Farm bill.

From the LA Times:

“Cargill, the largest private company in the world, began its business in 1865—

with a single grain silo. Today it is believed that Cargill's global network of silos store

more grain than any other private company…

But no one knows for sure because, like the Chinese, Cargill executives keep the

amount of grain they buy, sell and store a secret. In 2008, Cargill parlayed its

immense wheat holdings into an 86% jump in profits on global commodities

exchanges…

Such windfalls during times of panic, price hike and scarcity are not surprising:

Since the days of food shortages in ancient Greece and Rome, spikes in the price of bread encourage grain bankers

to hoard, not bring more grain to market.”

-LA Times 2012

What was Cargill’s reported profit in 2008?

$3.7 Billion

Summary:

Cargill IS our reserves.

What is China saying to us after we lost our grain reserves?

Shift in 2008

Translation:China will also be our grain

reserves.

Cargill and China both understand something that

the typical investor doesn’t..

The Power of Owning Food

HIGHEST BIDDER

Why do we export more wheat than anyone else in the world

while our own domestic demand increases every year?

Because other countries pay more!

For example:

We sold $20 Million of Wheat to brazil in 2012. Then, because of political problems with Argentina last year, Brazil decided to buy

more wheat from the US instead of Argentina. How much wheat do

you think we (“we” means Cargill) sold them in 2013?

$922 Million!!!

When another currency is stronger than the dollar, that country can bid higher on the price of wheat. And those with paychecks written in US Dollars just have to pay more for that

food.

Why did food prices soar in the 70s?

“Considering the U.S. economy as a whole, inflation for consumer goods, including food, was abnormally high almost across the board starting in 1973. This coincides with a major depreciation

of the U.S. dollar that took place in the early 1970s and raised the cost of imported goods. At the

same time, a sharp rise in fuel and energy prices resulted from global shortages in supply, which had ripple effects throughout the economy and

took many years to abate.”-USDA Article on Food Prices on April 07, 2014

Read an except from the summary of a congressional report:

The Depreciating Dollar: Economic Effects and Policy Response

Craig K. Elwell Specialist in Macroeconomic Policy

February 23, 2012

“A depreciating currency could affect several aspects of U.S. economic

performance. Possible effects include increased net exports, decreased

international purchasing power, rising commodity prices, and upward pressure on interest rates; if the trend is sustained, the

United states may also experience a reduction of external debt,

possible undermining of the dollar’s reserve currency status, and an elevated risk of a

dollar crisis.”

“To give Congress the economic context in which to view the dollar’s recent and

prospective movement, this report analyzes the evolution of the exchange rate since its peak in 2002. It examines several factors

that are likely to influence the dollar’s medium-term path, what effects a

depreciating dollar could have on the economy, and how alternative policy measures that could be taken by the

Federal Reserve, the Treasury, and the 112th Congress might influence the dollar’s

path.”

Does that strike your core as it does mine?

Is this not the exact scenario that is unfolding before our very

eyes?

Are China and Cargill going to be the only ones with the

foresight to cash in on another multi-billion dollar windfall

decade?

When massive drought plagues our nation, are China and Cargill going to be the only ones with

supply?

I see a future for our nation where the American people

have their own grain reserves

And we let our own bank accounts benefit from…

The Power of Owning Food