8 th Annual Farmer Cooperatives Conference Joint Ventures with International Partners Doug Wilson November 2005.

8th Annual Farmer Cooperatives Conference

Joint Ventures with International Partners

Doug Wilson

November 2005

7,102Members

8,744Members

19,875Members

Genex International History

►Late 1960s

►One-Third revenue

►Proficient International staff

►Over 60 countries

►Profits utilized to strengthen member product and service

Genex International Evolution

►Market changes as global players become self-sufficient

►A new vision of not simply selling, but creating Win/Win alliances

►Create a new strategic direction

Genex Provides1. Strong product

2. Skill genetics, reproduction, marketing, and distribution

3. Cooperative management experience

4. U.S. market investment and membership access

International Cooperatives Provide

1. Access to their membership

2. Emerging strong product lines

3. Niche product lines

4. Financial resources

CRI 1999 Strategic Directives

“Strengthen international trade capacity through purchases,

partnerships, joint ventures, and alliances with foreign domiciled organizations compatible to the

mission of CRI.”

Superbrown Cooperative in Italy

►Brown Swiss genetics

►Sharing product development

►Marketing structure for niche product

Dansire Cooperative in Denmark

►Large Jersey genetic program

►U.S. market holds vast potential

►Dansire product CRI marketing and member access

►Create growth for both cooperatives

Cooperative Finland

►Finnish AI cooperatives

►Finnish Red niche

►Utilizing our marketing investment

Dutch Cooperative CRV► Exclusive U.S. distributor

Dutch genetics► CRV exclusive

Netherlands distributor of Genex sires

► Joint product development– 100 bulls per year– $14 million joint

commitment► Joint held Australian

marketing structure

CRV/CRI Board Relation Develop

►Look at other ones – Dairy Records

UNECO France►UNECO distributes

Genex product in France

►Allow relationship to build

►Strong financial reserves

IndiaGen

►NDDB x CRI

►Upgrade Genetics

– Records - Profits

CRI – 20% Ownership – Board Seat

►Contribute:

– Training

– Expertise

– On-site Support

Closing Thoughts1. We have found there are some very

real opportunities by leveraging what we sometimes overlook. Our investment in marketing, cooperative experience, and technical expertise can provide expansion of product availability, business ownerships, and alliances not previously considered.

Closing Thoughts2. We like to “pick our friends.” Said

another way, the vast majority of our work is with cooperatives that have mission statements or philosophies similar to us. We have not jumped at every opportunity. If it doesn’t “feel right,” put your energy elsewhere.

Closing Thoughts3. We like to build the relationships and

have learned “one sided” alliances will not endure. Both parties must sacrifice, as you lose some direct control, and both must receive true benefits. Communications are especially key.

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