Cooperative Opportunities in a Global Economy Global Involvement Lessons Learned

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Cooperative Opportunities in a Global
EconomyGlobal Involvement Lessons Learned
8th Annual Farmer Cooperatives Conference
John E. Gherty Immediate Past President
CEO Land OLakes, Inc.
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Importance of this Conference

• Recognizes global nature of 21st century
  economy/marketplace
• Reflects our responsibility to be good global
  citizens

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Global View

• In todays complex and
• changing economic
• environment, being
• financially successful and
• adding value for members
• long term, will for many
• of our cooperatives
• require that we be prepared
• to pursue international
• business

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Global View

• The question is not
• whether we will
• have to operate in
• in a more unified
• global market
• but rather when
• and how.

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Topics

• The ways international business can add value for
  cooperatives and members
• How you build board and membership support for
  international efforts
• How Land OLakes has approached these issues

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Adding Value through International Activity

• Historic cooperative focus commodities
• Today access depends on being least-cost
• on a global basis
• Future opportunity will be in finding ways to add
  value to commodities
• Differentiate member production

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Adding Value through International Activity

• Differentiating member production
• Further processing
• Quality
• Dependability of supply
• Traceability
• Exporting new technology
• Meeting global needs of domestic customers

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Adding Value through International Activity

• Helping generate the size and scale necessary to
  compete and win
• Critical mass and economies of scale key
  attributes of successful companies

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Communicating with Board and Members

• CEO develops Vision for
• international involvement
• Develop and implement detailed
• communication plan
• Develop and implement specific
• projects and strategies

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CEOs Role

• Be point person with the Board
• Critical point of sale
• Demands compelling message(s)
• Based on facts and data
• Use outside resources
• Also need to build broader membership support

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Ten Things to Think Aboutin Communicating
Strategy

• The CEO or leader must be fully committed to the
  Vision
• You need to craft compelling messages around the
  Vision
• Take your messages to decision-makers first
• Send written material ahead of any meetings
• Have a communications plan with tasks, timing and
  accountabilities

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Ten Things to Think Aboutin Communicating
Strategy

• 6. Once you go beyond the board, be tactical
  about whom you communicate with first
• Use information meetings in the country
• Keep other stakeholders informed
• Be a good listener and incorporate feedback
• Over-resource your communication efforts

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The Land OLakes Experience

• Early 1980s Land OLakes
• UMW regional cooperative little international
  vision
• CEO Ralph Hofstad started the process
• Had a vision for Land OLakes growth
  domestically and internationally

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Land OLakes Global Involvement

• Land OLakes is proud to be a
• leader in the delivery of
• international humanitarian
• and technical assistance.

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Land OLakes Global Involvement
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Communicating Our International Vision

• Key objectives
• Reach out and help farmers in less developed
  countries
• Use international development projects to develop
  relationships that could lead to commercial
  opportunity
• Get board, members and employees involved
• Make them advocates

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Communicating OurInternational Vision

• Initial challenges skepticism
• Global development assistance
• would create new competitors
• Doing business in global markets
• would detract from our ability to
• succeed at home

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Communicating OurInternational Vision

• Key messages
• International development was a reflection of who
  we are as an organization
• Our involvement in international development had
  the potential to create positive relationships
  and open the door to commercial opportunities
• Land OLakes faced a very real need to expand its
  horizons

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Communicating Our International Vision

• Enlightened Self Interest

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Communicating OurInternational Vision

• Took these messages to
• Board
• Membership
• Annual meeting
• Country meetings
• Member publications

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Communicating OurInternational Vision

• Spreading the
• message
• Getting directors, members,
• employees and
• retirees directly
• involved in international
• development programs

You learn by doing!
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Land OLakes Today

• Directors, members and
• employees
• Proud of our international development efforts
• Understand importance of the ability to think,
  plan and globally
• Recognize global activities create new
  opportunities, rather than foster new competitors

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Land OLakes International Development

• International Development Division
• established in 1981
• Record of achievement
• 137 projects in 66 countries
• Training for 2,500 cooperatives and private
• companies
• Training for more than 50,000 foreign
• nationals

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Land OLakes International Development

• Goals
• Provide meaningful assistance
• Generate a positive image in current and
  potential markets
• Develop Land OLakes international experience and
  expertise

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Land OLakes Global Business

• First exported butter to Africa
• in 1925
• Late 1980s developed staff
• specifically dedicated to sales in
• Latin America and Far East

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Land OLakes Global Business

• Dairy Foods
• 34 countries
• Feed
• 39 countries
• Seed (alfalfa)
• 5 countries

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Cooperatives and the Global Future

• Cooperatives cannot afford to ignore global
  opportunity or global competition
• Cooperatives need to focus on core businesses and
  competencies
• The most significant opportunities exist in the
  value-added sector
• No one organization will do it alone
  collaboration and cooperation will be key