Making It Everywhere HOSTED BY Mike Fernandez Corporate Vice President Cargill, Inc. PRESENTED BY
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This Day in History June 10 1953 1692 3 Presentation Title-Date Making It Everywhere 2014 Cargill, Incorporated. All rights reserved.
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Upstate New York Better Understands the True Impact of Trade 5 Presentation Title-Date Making It Everywhere 2014 Cargill, Incorporated. All rights reserved.
Share of Rochester Metro Area Exports To Select World Regions 6 Presentation Title-Date
Average Annual Export Growth Real Exports By Select Industry Group 2009 to 2014 2014 Exports ($Millions) % Change 2009-2014 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, 2015 7 Presentation Title-Date
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The future ain t what it used to be 14 Presentation Title-Date Making It Everywhere 2014 Cargill, Incorporated. All rights reserved.
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
VUCA World 16 Presentation Title-Date Making It Everywhere 2014 Cargill, Incorporated. All rights reserved.
Drivers of Change and they feed off one another TECH & 17 Presentation Title-Date Making It Everywhere 2014 Cargill, Incorporated. All rights reserved.
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What is to be done? 19 Making It Everywhere
1. Study the Market 20 Making It Everywhere
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2. Assess your Brand 22 Making It Everywhere
Our Noble Purpose: Be the World Leader in Nourishing People 23 Making It Everywhere
3. Understand Culture & Custom 24 Making It Everywhere
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4. Hire a Guide 26 Making It Everywhere
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5. Know Talent 28 Making It Everywhere
6. Operate Ethically & Lawfully 29 Making It Everywhere
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, 2012 30 Making It Everywhere
7. Know Your Operating Standards 31 Making It Everywhere
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8. Understand How to Protect Privacy and Manage IP 33 Making It Everywhere
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9. Be Wary of Moves Based on Cost 35 Making It Everywhere
Bangalore Sofia San Jose Caracas 36 Making It Everywhere
10. Governments & Leaders Matter 37 Making It Everywhere
President Santos - Colombia Beijing - AQSIQ PM Abe - Japan Pres. Jokowi - Indonesia PM Modi - India 38 Making It Everywhere
11. Government Systems May Not Matter 39 Making It Everywhere
Silkroad JV Kakinada, India Singapore Cuba 40 Making It Everywhere
12. Technology is Making Global Trade Easier 41 Making It Everywhere
Twitter Nation? 42 Making It Everywhere
13. Understand Your Supply Chains (especially if materials, parts and ingredients come from elsewhere) 43 Making It Everywhere
Soy production in Romania, Italy & France contracted 2000-2 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 2000-5 Company met with environmental groups Cargill opens processing plant on Tapajós River 44 Making It Everywhere
Soy in Brazil 2005-2006 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
Path Forward Build, Establish & Engage 46 Making It Everywhere
14. Know your advantages as a U.S. citizen 47 Making It Everywhere
15. Become a Citizen of the World 48 Making It Everywhere
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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The Importance of Trade and Agreements like TPP 51 Making It Everywhere
Americans Wary of Global Involvement 52 Making It Everywhere
The Reason? 53 Making It Everywhere
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United States % of World GDP 22.3% % of World Population 4.4% 55 Making It Everywhere
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Exports as Share of GDP by Country G-20 Economies 1. 2. 3. 4. 5. 19. 53.9% 50.7% 31.8% 31.6% 30.1% 13.5% 57 Making It Everywhere
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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: 20-30 year phase out Soy: eliminated over 11 years (Vietnam now at 35%) Wheat: eliminated over 6 years 59 Making It Everywhere
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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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