2004 Virginia Agriculture Summit February 24-25, 2004 Charlottesville, VA Re-vitalization of East Coast Export Program Speaker: Richard L. Willey Perdue.

2004 Virginia Agriculture SummitFebruary 24-25, 2004Charlottesville, VA

Re-vitalization of East Coast Export Program

Speaker: Richard L. WilleyPerdue Farms Incorporated - Grain & Oilseed Division

President and General Manager

VA Ag Summit 2004 - Richard L. Willey, Perdue Farms

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Perdue Farms Incorporated

Retail ProductsDivision

M ike RobertsPresident & GM

FoodserviceDivision

Randy DayPresident & GM

International SalesDivision

Peggy ViningVice President

Grain & OilseedDivision

Dick W illeyPresident & GM

Bob TurleyPresident & COO

Jim PerdueChairm anQuality products since 1920.

Privately held, vertically integrated producer, processor, marketer and distributor of food and agricultural products to customers in more than 40 countries.

Annual sales of approximately $3 billion.

The largest poultry producer in the Northeastern U.S. with food-processing facilities in 10 states that produce approximately 50 million pounds/week of poultry products.

Ranks among the top 12 largest grain companies in North America handling in excess of 225 million bushels/year of corn, soybeans, wheat, barley and milo.


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• In 1997, the Port of Norfolk, Richmond Cold Storage and Perdue Farms formed International Refrigerated Port Services, a state-of-the-art dockside freezer for export products.

• As much as 15 million pounds of fresh poultry can be frozen and stored at a time.


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Perdue Farms is the largest chicken exporter out of the Port--more than 135 mln lbs/yr.• Further processed and 8-piece cut-up chicken to U.S. military, Cuba (2.7 mln lbs.)• Roaster Paws to China• Sized legs to Japan and Korea• Leg quarters to Republic of Georgia and Moldavia• Hot dogs to Puerto Rico, Haiti, Singapore, Hong Kong, China, Ghana, West Africa


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Perdue-Chesapeake, VA

Soybean Crushing and Export Grain Terminal• Can load grains, soy meal and soy oil• Nearly 200 MT of on-site storage capacity• Panamax capable

Grain & Oilseed Division


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• Loaded more than 74 vessels at Chesapeake since June 2000 representing more than 2.09 million metric tons of products.

• Averaging more than 500,000 metric tons of products each year.

G&O Transportation and Logistics



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Origins of the Grains and Oilseed


Truck Rail Barge

Wheat

Barley

Corn

Soybeans

Midwest rail

Virginia rail, barge, truck

Nor

th C

arol

ina

rail,

bar

ge, t

ruck

Marylan

d rail, b

arge, tru

ckD

elaw

are rai l, b

arge

, t ruc

k


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Cuba

Puerto Rico

Venezuela

Greece

Algeria The PhilippinesEgyptAlgeria

Tunisia

Panama

Mexico

Pakistan

Colombia

Peru

Jamaica

Perdue Soybean Meal and Oil Destinations

Top Meal CustomersThe Philippines

AlgeriaVenezuela

Cuba

Top Oil CustomersMexicoEgyptPeru



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Perdue Grains and Oilseed Destinations

Top Soybean CustomersGermanyHollandGreece

Top Wheat CustomersEgypt

The PhilippinesBrazil

Top Corn Customers

AlgeriaMorocco

Israel

Top Barley CustomersSaudia Arabia

Spain

EgyptLibya

Mexico

Yemen

China

Brazil

Chile

ThePhilippines

Germany

Holland

Portugal

Greece

EgyptMorocco

Algeria

Israel

Puerto Rico

Israel

MoroccoSaudiaArabia

Spain

The Philippines



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• As an exporter of grain, we provide farmers another outlet for marketing their crops.

• As a potential importer of grain, we protect our poultry assets and the viability of the poultry producers.

• The Chesapeake Terminal:

• Is one of two crushing facilities located on deep water in the U.S.

• Is one of two deep water port facilities on the East Coast that can receive feed ingredients or grain.

• Is one of three export facilities on the East Coast and the only one on the Mid-Atlantic.

• Can participate in the evolving bi-hemispheric marketing of soy products and grains.

• Bi-hemispheric trade enables us to sell local production during “peak” demand for U.S. product and replace it with alternative southern hemisphere product later in the year.

Farm

er

Producer

Ag Economy

Perdue Farms - Grain & Oilseed DivisionStrategic Outlook

Poultry Integrator



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Growth Initiative: Establish Perdue as an importer, exporter and processor of grains and other agriculturally based products.

Signed grain throughput agreement with ADM in Jan 2002. Signed operating lease for 13 Southern States elevators in Sep 2002. Installed the stationary unloader at Chesapeake in March 2003. Expand Midwest origination. Establish trading presence in South America.

Quality products since 1920.


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US

DA

Su

pp

ly/D

eman

d W

orld

Cor

n (

MM

T)

Jan USDA

Jan USDA

Feb USDA

98-99 99-00 00-01 01-02 02-03 03-04 03-04

Supply

Begin’g Stocks 146.22 169.12 171.04 152.12 129.64 102.30 102.72

Production 605.69 606.77 588.26 599.35 603.46 607.12 609.07

Imports 75.22 79.98 75.62 74.42 75.42 76.24 77.05

Use

Feed, Domestic 403.59 421.38 426.15 433.12 432.22 439.52 440.82

Total Domestic 582.79 604.43 605.40 621.83 630.80 641.93 644.56

Exports 75.71 85.78 77.22 76.11 78.23 76.09 76.87

Ending Stocks 169.12 171.47 153.91 129.64 102.30 67.49 67.23

Stock/Use Ratio 29.0% 28.4% 25.4% 20.8% 16.2% 10.5% 10.4%

5 weeks usage


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US

DA

Su

pp

ly/D

eman

d U

.S. C

orn

(mln

acr

es, b

u/a

cre)Feb USDA Jan USDA Feb USDA

98-99 99-00 00-01 01-02 02-03 03-04 03-04

Area

Planted 80.2 77.4 79.6 75.8 79.1 78.7 78.7

Harvested 72.6 70.5 72.4 68.8 69.3 71.1 71.1

Yield 134.4 133.8 136.9 138.2 130.0 142.2 142.2

Begin’g Stocks 1,308 1,787 1,718 1,899 1,596 1,087 1,087

Production 9,759 9,431 9,915 9,507 9,008 10,114 10,114

Imports 19 15 7 10 14 10 10

Total Supply 11,085 11,232 11,639 11,416 10,619 11,211 11,211

Feed & Residual 5,472 5,665 5,842 5,868 5,599 5,775 5,800

Food, Seed, Ind. 1,846 1,913 1,957 2,046 2,340 2,480 2,510

Total Domestic 7,318 7,578 7,799 7,915 7,939 8,255 8,310

Total Exports 1,981 1,937 1,941 1,905 1,592 1,975 2,000

Total Use 9,298 9,515 9,740 9,820 9,532 10,230 10,310

Ending Stocks 1,787 1,718 1,899 1,596 1,087 981 901

Stock/use Ratio 19.2% 18.1% 19.5% 16.3% 11.4% 9.6% 8.7%

less than 5 weeks usage


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US

DA

Su

pp

ly/D

eman

d W

orld

Soy

bea

n (M

MT

)

Jan USDA

Jan USDA

Feb USDA

98-99 99-00 00-01 01-02 02-03 03-04 03-04

Supply

Begin’g Stocks 25.09 26.55 27.76 30.71 32.14 38.74 39.27

Production 159.75 159.90 175.06 184.87 196.77 198.73 199.73

Imports 40.50 47.97 55.17 54.21 63.60 67.57 67.14

Use

Feed, Domestic 135.81 136.23 146.83 158.10 165.91 174.93 174.58

Total Domestic 159.93 160.77 171.84 184.02 191.07 201.55 201.36

Exports 38.67 46.68 55.50 53.62 62.71 67.51 67.32

Ending Stocks 26.74 26.97 30.64 32.14 38.74 35.98 37.47

Stock/Use Ratio 16.7% 16.8% 17.8% 17.5% 20.3% 17.9% 18.6%


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US

DA

Su

pp

ly/D

eman

d U

.S. S

oyb

ean

(mln

acr

es, b

u/a

cre)

Feb USDA Jan USDA Feb USDA

98-99 99-00 00-01 01-02 02-03 03-04 03-04

Area

Planted 72.0 73.7 74.3 74.1 73.9 73.4 73.4

Harvested 70.4 72.4 72.4 73.0 72.4 72.3 72.3

Yield 38.9 36.6 38.1 39.6 38.0 33.4 33.4

Begin’g Stocks 200 348 290 248 208 178 178

Production 2,741 2,654 2,758 2,891 2,749 2,418 2,418

Imports 3 4 4 2 5 8 8

Total Supply 2,944 3,006 3,052 3,141 2,962 2,604 2,604

Crush 1,590 1,579 1,640 1,700 1,615 1,455 1,455

Exports 801 973 996 1,064 1,045 900 900

Seed 88 90 91 90 89 90 90

Residual 113 75 78 79 34 33 33

Total Use 2,595 2,716 2,804 2,933 2,784 2,479 2,479

Ending Stocks 348 290 248 208 178 125 125

Stock/use Ratio 13.4% 10.7% 8.8% 7.1% 6.4% 5.0% 5.0%

less than 3 weeks usage


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US

DA

Su

pp

ly/D

eman

d W

orld

Wh

eat

(MM

T)

Jan USDA

Jan USDA

Feb USDA

98-99 99-00 00-01 01-02 02-03 03-04 03-04

Supply

Begin’g Stocks 138.18 175.61 206.64 205.73 201.11 165.44 165.57

Production 588.80 586.16 582.05 581.86 566.84 552.66 551.77

Imports 121.52 131.47 101.53 108.25 106.10 97.62 98.77

Use

Feed, Domestic 104.00 97.65 105.97 107.86 113.00 102.81 102.16

Total Domestic 589.75 591.50 584.41 586.48 602.51 590.84 591.40

Exports 122.58 134.95 102.78 108.04 106.60 101.32 103.62

Ending Stocks 137.22 170.27 204.29 201.11 165.44 127.26 125.96

Stock/Use Ratio 23.3% 28.8% 35.0% 34.3% 27.5% 21.5% 21.3%


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US

DA

Su

pp

ly/D

eman

d U

.S. W

hea

t (m

ln a

cres

, bu

/acr

e)Feb USDA Jan USDA Feb USDA

98-99 99-00 00-01 01-02 02-03 03-04 03-04

Area

Planted 65.8 62.7 62.6 59.6 60.5 61.7 61.7

Harvested 59.0 53.8 53.1 48.6 45.9 52.8 52.8

Yield 43.2 42.7 42.0 40.2 35.3 44.2 44.2

Begin’g Stocks 722 946 950 876 777 491 491

Production 2,547 2,299 2,232 1,957 1,619 2,337 2,337

Imports 103 94 90 108 77 75 75

Total Supply 3,373 3,339 3,272 2,941 2,473 2,903 2,903

Food 907 929 950 926 918 910 910

Seed 81 92 80 84 84 84 84

Feed/Residual 397 280 304 191 126 225 225

Total Domestic 1,385 1,301 1,334 1,201 1,128 1,219 1,219

Total Export 1,042 1,089 1,062 962 854 1,125 1,150

Total Use 2,427 2,390 2,396 2,164 1,982 2,344 2,369

Ending Stocks 946 950 876 777 491 559 534

Stock/use Ratio 39.0% 39.7% 36.6% 35.9% 24.8% 23.8% 22.5%


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2004 Virginia Agriculture SummitFebruary 24-25, 2004Charlottesville, VA

2004 Virginia Agriculture Summit February 24-25, 2004 Charlottesville, VA Re-vitalization of East Coast Export Program Speaker: Richard L. Willey Perdue.

Documents

perdue grains

va ag summit

exporter of grain

va soybean

truck slide

export grain terminal

export products

oilseed destinations