Making It Everywhere. Mike Fernandez Corporate Vice President Cargill, Inc.

Transcription

1 Making It Everywhere HOSTED BY Mike Fernandez Corporate Vice President Cargill, Inc. PRESENTED BY

2 2 Making It Everywhere

3 This Day in History June Presentation Title-Date Making It Everywhere 2014 Cargill, Incorporated. All rights reserved.

4 4 Presentation Title-Date Making It Everywhere 2014 Cargill, Incorporated. All rights reserved.

5 Upstate New York Better Understands the True Impact of Trade 5 Presentation Title-Date Making It Everywhere 2014 Cargill, Incorporated. All rights reserved.

6 Share of Rochester Metro Area Exports To Select World Regions 6 Presentation Title-Date

7 Average Annual Export Growth Real Exports By Select Industry Group 2009 to Exports ($Millions) % Change Food, Ag, Beverage $657 55% Fabricated Metals $175 56% Computer & Electronics $887 52% Financial Services $458 51% Educational & Medical Services $280 39% Travel & Tourism $242 25% Machinery Manufacturing $1,247 8% Chemicals $951-57% Source: Brookings Institution, Presentation Title-Date

8 8 Presentation Title-Date 2014 Cargill, Incorporated. All rights reserved.

9 9 Presentation Title-Date 2014 Cargill, Incorporated. All rights reserved.

10 10 Presentation Title-Date 2014 Cargill, Incorporated. All rights reserved.

11 11 Presentation Title-Date 2014 Cargill, Incorporated. All rights reserved.

12 12 Presentation Title-Date

13 13 Presentation Title-Date

14 The future ain t what it used to be 14 Presentation Title-Date Making It Everywhere 2014 Cargill, Incorporated. All rights reserved.

15 World We Operate in is Changing Social Content It s not just social media. Everyone is expecting interaction customers, policy makers, NGOs, everyone. Always on 24 hours news cycle and the internet mean issues are always on we need to find new ways to manage even as we sleep. We re upping the ante on how we communicate. More videos, more images, more info-graphics, better story telling. Context To be understood and secure a license to operate, it s not enough to provide more information we need to be more declarative, more transparent, and engaged. 15

16 VUCA World 16 Presentation Title-Date Making It Everywhere 2014 Cargill, Incorporated. All rights reserved.

17 Drivers of Change and they feed off one another TECH & 17 Presentation Title-Date Making It Everywhere 2014 Cargill, Incorporated. All rights reserved.

18 18 Presentation Title-Date Making It Everywhere 2014 Cargill, Incorporated. All rights reserved.

19 What is to be done? 19 Making It Everywhere

20 1. Study the Market 20 Making It Everywhere

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22 2. Assess your Brand 22 Making It Everywhere

23 Our Noble Purpose: Be the World Leader in Nourishing People 23 Making It Everywhere

24 3. Understand Culture & Custom 24 Making It Everywhere

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26 4. Hire a Guide 26 Making It Everywhere

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28 5. Know Talent 28 Making It Everywhere

29 6. Operate Ethically & Lawfully 29 Making It Everywhere

30 Ethics Matter Minneapolis Star Tribune, April 22, 2012 One of Cargill s biggest challenges is their corporate policy, in compliance with U.S. law, against bribes. The New York Times, April 22, Making It Everywhere

31 7. Know Your Operating Standards 31 Making It Everywhere

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33 8. Understand How to Protect Privacy and Manage IP 33 Making It Everywhere

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35 9. Be Wary of Moves Based on Cost 35 Making It Everywhere

36 Bangalore Sofia San Jose Caracas 36 Making It Everywhere

37 10. Governments & Leaders Matter 37 Making It Everywhere

38 President Santos - Colombia Beijing - AQSIQ PM Abe - Japan Pres. Jokowi - Indonesia PM Modi - India 38 Making It Everywhere

39 11. Government Systems May Not Matter 39 Making It Everywhere

40 Silkroad JV Kakinada, India Singapore Cuba 40 Making It Everywhere

41 12. Technology is Making Global Trade Easier 41 Making It Everywhere

42 Twitter Nation? 42 Making It Everywhere

43 13. Understand Your Supply Chains (especially if materials, parts and ingredients come from elsewhere) 43 Making It Everywhere

44 Soy production in Romania, Italy & France contracted Demand for non-gm soy meal went up in Europe Cargill needed to find a source outside US to meet demand Cargill found that it could meet demand from northern Brazil and save 2 days in shipping Brazilian farmers were eager Soy in Brazil Company met with environmental groups Cargill opens processing plant on Tapajós River 44 Making It Everywhere

45 Soy in Brazil With processing plant in place some ranchers and farmers worked to bring more land into production. Activists protest/blockade Cargill port. Protests shifts to European customers Greenpeace issued Eating Up the Amazon Cargill though only 6% of Brazil s soy became focus When a regulatory filing error was discovered, the Brazilian government closed the plant. 45 Making It Everywhere

46 Path Forward Build, Establish & Engage 46 Making It Everywhere

47 14. Know your advantages as a U.S. citizen 47 Making It Everywhere

48 15. Become a Citizen of the World 48 Making It Everywhere

49 In a world where nothing can be hidden, You had better have nothing to hide Greg Page Former Chairman & CEO Cargill Inc. 49 Making It Everywhere

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51 The Importance of Trade and Agreements like TPP 51 Making It Everywhere

52 Americans Wary of Global Involvement 52 Making It Everywhere

53 The Reason? 53 Making It Everywhere

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55 United States % of World GDP 22.3% % of World Population 4.4% 55 Making It Everywhere

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57 Exports as Share of GDP by Country G-20 Economies % 50.7% 31.8% 31.6% 30.1% 13.5% 57 Making It Everywhere

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59 Trans-Pacific Partnership Benefits Food/Agriculture Trade w/ 11 countries is 42% of Ag exports; worth $63B in sales TARIFF REDUCTIONS Beef: overtime eliminates tariffs in Vietnam and Peru and reduces them in Japan from 38.5% to 9% Poultry: eliminated over 13 years Barley/Malt: eliminated upon approval and access improved by amounts (higher import quotas) Corn: eliminated over 5 years; plus greater access Cotton: eliminated in 10 years (some now as high as 19.6%) Dairy: year phase out Soy: eliminated over 11 years (Vietnam now at 35%) Wheat: eliminated over 6 years 59 Making It Everywhere

60 Trans-Pacific Partnership Benefits BEYOND TARIFFS Food Safety Measures Consistent w/ US practice Agricultural Biotech 1 st time covered in major trade agreement Labor Eliminates child labor, protects against employment discrimination, and protects collective bargaining Environment combats wildlife trafficking of protected species, illegal logging and illegal fishing and protects marine environments Digital Trade cyber-security improvements, bars forced technology transfers, ensures open internet, and improves IP protections 60 Making It Everywhere

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62 THANK YOU SPONSORS EXHIBITOR LIST Littler Mendelson, P.C. Digital Rochester SEKO Worldwide Global NY, Empire State Development Export-Import Bank of the U.S. U.S. Small Business Administration U.S. Department of Commerce Mohawk Global Logistics Language Intelligence ER Select LLC CentriLogic Wells Fargo Bank ALT Translations, LLC High Tech Rochester Brockport Small Business Development Center St. John Fisher College PC Results Inc. Monroe County Economic Development SPEED Global Services