Global Business Club of Mid-Michigan Creating Brand Recognition in a Global Market March 24, 2009 Patricia Anderson, CEO Cooperative Elevator Co.

Global Business Club of Global Business Club of Mid-MichiganMid-Michigan

Creating Brand Recognition in a Global Creating Brand Recognition in a Global MarketMarket

March 24, 2009March 24, 2009Patricia Anderson, CEO Patricia Anderson, CEO

Cooperative Elevator Co.Cooperative Elevator Co.

ESTABLISHEDESTABLISHED NOVEMBER 15, 1915 NOVEMBER 15, 1915

Vision and mission today are similar…Vision and mission today are similar…

VisionVision

We develop long-term relationships We develop long-term relationships

with customers and thewith customers and the

community that exceed theircommunity that exceed their

business expectationsbusiness expectations

MISSIONMISSION

We provide quality service, We provide quality service,

products, and markets toproducts, and markets to

enhance the value of the enhance the value of the

CooperativeCooperative

MottoMotto

In Unity There Is Strength!In Unity There Is Strength!

Quick FactsQuick Facts Owned by 940 producer membersOwned by 940 producer members Employ 140 full-time and Employ 140 full-time and

30-50 seasonal employees30-50 seasonal employees During 2008 over $92,000,000 was During 2008 over $92,000,000 was

paid out to members for paid out to members for commodities growncommodities grown

$65,000,000 investment in facilities $65,000,000 investment in facilities and equipmentand equipment

Over $176,000,000 in annual salesOver $176,000,000 in annual sales

Quick FactsQuick Facts

Export Beans and GrainExport Beans and Grain Export Markets IncludeExport Markets Include

Australia, Canada, Guatemala, Haiti,Australia, Canada, Guatemala, Haiti,

Jamaica, Mexico, South Korea, Jamaica, Mexico, South Korea, Sedan, South Africa, Spain, United Sedan, South Africa, Spain, United KingdomKingdom

Key ElementsKey Elements MembersMembers Board of DirectorsBoard of Directors Management and Employee TeamManagement and Employee Team EquipmentEquipment Facilities – 16,500,000 bu. storageFacilities – 16,500,000 bu. storage Markets – Global and DomesticMarkets – Global and Domestic Relationships Relationships

TeamTeam

Ready to ServeReady to Serve

BeansBeans

GrainGrain

AgronomyAgronomy

PetroleumPetroleum

FeedFeed

Ready to Serve and Committed to Ready to Serve and Committed to Michigan!Michigan!

Facilities Throughout the ThumbFacilities Throughout the ThumbAkronAkron Bad AxeBad Axe ElktonElkton Fairgrove Fairgrove GagetownGagetown North BranchNorth Branch PigeonPigeon RuthRuth SebewaingSebewaing

AkronAkron

Bad AxeBad Axe

ElktonElkton

Elkton TerminalElkton Terminal

FairgroveFairgrove

GagetownGagetown

PigeonPigeon

Pigeon Colored Bean PlantPigeon Colored Bean Plant

RuthRuth

SebewaingSebewaing

Markets, Central de Abastos, Markets, Central de Abastos, MexicoMexico

Warehouse, MexicoWarehouse, Mexico

Central de Abastos, MexicoCentral de Abastos, Mexico

Our Branded ProductOur Branded Product

Package Retail ProductPackage Retail Product

RelationshipsRelationships

Michigan Department of AgricultureMichigan Department of Agriculture LegislatureLegislature Michigan State UniversityMichigan State University Michigan Crop Improvement Michigan Crop Improvement

AssociationAssociation Michigan Bean Shippers AssociationMichigan Bean Shippers Association Michigan Agri Business AssociationMichigan Agri Business Association Food Export AssociationFood Export Association

Premium Quality Bean VideoPremium Quality Bean Video

Why Do We Export?Why Do We Export? Demand from ethnic cultures for our Demand from ethnic cultures for our

quality productsquality products Freight advantageFreight advantage Offer enhanced markets to our patronsOffer enhanced markets to our patrons Diversify our businessDiversify our business To develop global brand recognitionTo develop global brand recognition We like challengesWe like challenges

Export ChallengesExport Challenges TariffsTariffs Letters of creditLetters of credit Credit worthiness Credit worthiness Different accounting standardsDifferent accounting standards Currency risksCurrency risks Cultural differences Cultural differences Different business practicesDifferent business practices Language barriersLanguage barriers FreightFreight

Export OpportunitiesExport Opportunities

Markets where you can achieve base hit Markets where you can achieve base hit results quicklyresults quickly

PopulationPopulation Niche marketsNiche markets Balance profitability with risks, cost and Balance profitability with risks, cost and

timetime Win-win attitudeWin-win attitude

Export HelpExport Help Value added grantsValue added grants BrokersBrokers

Knowledge of the cultureKnowledge of the culture

Knowledge of the customerKnowledge of the customer

Representation in the marketplaceRepresentation in the marketplace Export hotlineExport hotline Branded programBranded program

Access to trade shows and peopleAccess to trade shows and people

Marketing cost sharingMarketing cost sharing International attorneys-trademarksInternational attorneys-trademarks Credentialing offices - labelingCredentialing offices - labeling

Export RewardsExport Rewards

2006 named Michigan Ag Exporter of the 2006 named Michigan Ag Exporter of the YearYear

Increased inquiries from additional Increased inquiries from additional countries for all commoditiescountries for all commodities

Export ChecklistExport Checklist Collect information about potential Collect information about potential

export marketsexport markets

Gather information on a broad rangeGather information on a broad range

of marketsof markets

Research a selection of markets in Research a selection of markets in

depthdepth Make comparisonsMake comparisons Use a formal matrix to weight questions Use a formal matrix to weight questions

according to importanceaccording to importance Make decisionsMake decisions

QuestionsQuestions

In Unity There Is Strength!In Unity There Is Strength!

Thank You!Thank You!