Ann Ness, Vice President of Corporate Brand Management at Cargill, presented Repositioning the Masterbrand: The Cargill Case Study at the Forum.

Cargill is a family owned company that began as a grain elevator and has grown to 152,000 employees in 69 countries and more than 80 businesses. In 1999, Cargill made a change in their business model and launched a new identity in 4 steps over 6 years. The first step was the creation of a brand council to develop a corporate vision statement, a purpose and vision, how to approach it and to measure the performance.

Next was the brand architecture. Cargill wanted to operate as a master brand and not as a holding company. Their goal is to be the global leader by 2010.

Cargill then developed brand positioning with the help of a brand strategy firm. This firm made Cargill talk to their customers who said they do not think of Cargill as an innovator or as collaborative, but strictly as a commodities provider; but said they viewed Cargill as very smart. This research led to the creation of brand positioning. The final step was advertising strategy that focused on providing evidence of relationships through television commercials.

So, is this working to reposition the Cargill brand? Cargill measures attitude and awareness every year and what they are finding is that perceptions are broadening and improving. “We are very encouraged by results,” said Ness. Cargill has been able to measure farmer responses with focus groups around the world.

Cargill also had to change internally. They had to refocus, “changes had to be made internally in order to deliver externally. Part of Cargill’s success is their entrepreneurial spirit,” said Ness.

Mike Adams, host of AgriTalk, hosted a panel discussion on Bio fuels, Wednesday, November 15, at the Forum. The session was broadcast live on AgriTalk through 70 stations in 20 states and on the AgriTalk web site. Panel members included: Richard Hahn, former president and CEO of Farmers National Company; Rick Tolman, CEO of the National Corn Growers Association; Kendell Keith, president of the National Feed and Grain Association; and Neil Dierks, CEO of the National Pork Producers Council.

Each panel member described their background and what they are presently doing in the area of bio fuels. The panel presented and dispelled myths about bio fuels including: ethanol causing a supply demand imbalance; ethanol diverts corn away from food markets; ethanol causes unprecedented corn prices; and ethanol takes more energy.

According to Rick Tolman, “Bio fuels have been and will continue to fuel the bio fuels industry bringing new dynamics, new excitement, and new energy for every aspect of agriculture.”

Tolman described NCGA’s vision of 15x15x15 which means by 2015 they hope to produce 15 billion bushels of corn which allows them to produce 15 billion gallons of ethanol and still meet the food and feed needs. This will be a 50% increase in corn production from 2006 and a tripling in the amount of ethanol produced.

Richard Hahn has a similar program called 25×25. This program hopes to supply 25% of our energy needs by the year 2025, which includes more than just ethanol, but also wind energy. Hahn also sees a little softening in land values and sees a renewed interest in buying land for corn production.

The National Pork Producers Council is supportive of renewable fuels. However, Pork Producers are very concerned about the prices of corn going up. Neil Dierks says that the U.S. needs to remain the world’s reliable supplier of safe, high quality food and grains.

Kendell Keith says that ethanol is growing rapidly. Keith says it is estimated that 8.9 billion bushels of corn will be going into ethanol production by 2009. The USDA estimated at the beginning of 2006 that 1.9 billion bushels of corn would be going into ethanol production for 2006-2007. Now it’s estimated that there will be 2.2 billion bushels in production.

Keith also stated that Biofuels are increasing much more quickly than what we thought. “There’s going to be a lot bigger impact on ag than we envisioned a year ago,” said Keith. “Faster investments can be mistake-prone and can cause disinvestments in existing infrastructure that is unnecessary.”

Critics may disagree on the long term ability for agriculture to satisfy the demand. However, they do agree that something must be done to reduce dependency on petroleum and increase the use of fuels from renewable resources.

Special thanks to Padilla Speer Beardsley/Adculture Group for sponsoring this session.

Sano Shimoda, president and founder of BioScience Securities, hosted the panel discussion Food, Fuel & Feed – Frontiers of Change, on Wednesday, Nov. 15. Panel members included, Dan Basse, founder and president of AgResource; Hugh Whaley, senior vice president of Osborn & Barr Communications; and Lyle Orwig, CEO of Charleston Orwig.

Kicking off the session, Basse talked about the global implications of ag saying that the talk of biofuels is everywhere. He says that the southeast Asia commodity demand is rising because they are using more soybean oil for food use. Global grain consumption is also moving up because of southeast Asia.

One significant controversy that was discussed was the food vs. fuel battle. Basse believes that “as the bio fuel revolution reaches it zenith in 3 to 5 years and we then get cellulistic, we’re going to have more of a contractual and less of a commodity world upon us.”  He adds, “That’s something all of us in the marketing business really need to ponder.” Whaley agrees, “There are a lot of different varieties that are in the market place that will help soybean producers, corn growers, etc., to be able to grow to where the market demand is taking that commodity.” However, Orwig say’s that, “We can’t let the debate go to one vs. the other, but we’ve got to move the debate to both.”

Where do these panel members see the future of corn for ethanol production? Is corn a temporary thing that we’re seeing now but may be replaced by cellulose? Yes, according to Basse. He believes that ethanol has a viable place in the marketplace. He says that it’s such a volatile fuel, that if we’re going to get beyond the idea of “let’s use 10 billion gallons” then we’re going to have to get to flex fuel cars and move towards E-85, which, he says, we’re not seeing much sponsorship from Detroit or the government to use those products. If we plan to produce any more than 10 billion gallons, Basse said he would be concerned.

For Basse, the relation between bio diesel and crude oil is much more important than corn. At the moment the bio diesel producer in the country is marginally profitable, so we must watch the crude oil price.

Orwig says that agriculture is at war with itself. When asked if it matters how important and effective groups like NCBA, NCGA, etc., can be, Orwig says yes, these groups can have a dramatic effect because of the internet. He says that it’s unfortunate because people take what’s on the internet as gospel, and small groups such as these can use the internet to make their points which can ultimately find it’s way to legislation.

Whaley says that organizations that would do battle with ag, that would try to influence the fact that certain aspects of ag are bad, have a total combined “war chest” of $1.3 billion annually to carry out scare tactics. And what does ag contribute to a “war chest” to defend itself? Not $1.3 billion. Whaley says that until we get our act together to combat the war with ourselves in the ag industry, then there will be a link between all those organizations out there that have an issue with production ag, and that want to drive it out of this country. He says unless we who are involved in ag stand up and defend it emotionally and not with science (because science over emotion never works); then we’ll continue to take a backseat and continue to get beat up in the media and the boardrooms across America.

Special thanks to Osborn & Barr for sponsoring this session.

Sano Shimoda, BioScience Securities, concluded the 2006 Agribusiness Forum with “The Final Frontier – Where are we Headed?” on November 15.

Shimoda believes that to understand agriculture you have to understand it through the eyes of the people that make it happen. He believes that we are at a position now where agriculture is going to see a rebirth. Is it the final frontier? “No,” he says, “I think that agriculture stands at the door to catalyze or help catalyze a new industrial revolution that will redefine agriculture on multiple levels.”

History sometimes gives you unique insights, according to Shimoda. The original industrial revolution redefined economic progress and technology. Technology innovation changed the way people thought about their businesses. Shimoda says the future of agriculture is tied to technology and innovation.

Shimoda says that bio fuels could help redefine the fundamental cost structure of the U.S. economy. We’re looking at a globalized world where other countries have other competitive advantages. Shimoda believes bio fuels could help enhance our competitive position in a globalized world where competition will get tougher and tougher. Shimoda also says that all bio fuels have to get to a cost position where they get can compete with $25-$30 dollar per barrel oil, so it creates a sustainable business.

Ag and technology could transform agriculture in the future through markets and mindset. This country faces key strategic challenges and that creates opportunities and risks for agriculture, according to Shimoda. He says that our ability to compete in the world and in agriculture is a function of education integrated with technology in the marketplace.

So what’s the big picture? What is the key to reinvigorating this country? Shimoda says it’s education, science and technology. Can agriculture turn potential into reality? According to Shimoda, the key is mindset, not business as usual. We’re looking at increased competition therefore our focus has to be at the competitive edge of value-added and low cost.

“The approach towards bio fuels as of today is framed within an ag support policy not an energy policy,” says Shimoda. We need to focus on rational policy and focus on a fuel that will get us there. He says the next 15-20 years will be the greatest era for agriculture combined with technology.

Sano Shimoda has over 30 years of experience in the Wall Street community focusing on agriculture, biotechnology, bio fuels and the agricultural chemical industries. Shimoda is well recognized for his forward-looking views of the changing dynamics new bio-developments will have on agriculture and the overall economy. BioScience Securities’ views are widely quoted in both general business and agricultural-oriented publications.

Special thanks to Elanco Animal Health for sponsoring this session.

The Agri-Business Educational Foundation (ABEF) hosted a Casino Night on Tuesday, November 14, during the Agribusiness Forum Welcome Reception. Proceeds from the Casino Night benefit the ABEF in support of the NAMA Student Careers Program.

Attendees enjoyed a little gambling with play money and, at the end of the evening, cashed in their chips in hopes of taking home a first, second, or third place prize. The first place prize went to Russ Parker, J.L. Farmakis. Second place was won by John Vasichek, Red River Farm Network. The third place prize went to Christy Borrowman, Blasdel Cleaver Schwalbe Communications. 

In addition, for every $1,000 in chips that the attendees turned in, their name was entered into a drawing for 2007 Agri-Marketing Conference & Trade Show registration. It was Christy Borrowman’s lucky day as she also won the conference registration.

Special thanks to all who participated in the ABEF Casino Night and to the sponsors of the event:

FMC Corporation
National Pork Board
Rhea & Kaiser
John Deere
Colle+McVoy
CMA Consulting
Blasdel Cleaver Schwalbe Communications
KFRM Radio – The Voice of the Plains
J.L. Farmakis
Pioneer Hi-Bred Intl., Inc.
High Plains Journal
LEE Agri-MEDIA
Ayres Kahler

The recipients of the NAMA Professional Development Awards of Excellence were honored at a luncheon on Wednesday, November 15, at the Agribusiness Forum.

The Professional Development Awards of Excellence recognize NAMA members for achievement in the areas of Marketing Communications, Product/Species Management, Public Relations and Sales.

This year, NAMA honored Steve Engle, Woodruff Sweitzer with the marketing communications award; Barry Nelson, John Deere, with the award of excellence in public relations; and Anita Vanderwert, Brownfield Network with the honors in sales.

Congratulations to the honorees of this year’s NAMA Professional Development Awards of Excellence.

We’d like to take a moment to thank all of our sponsors of the 2006 Agribusiness Forum. We greatly appreciate your commitment to NAMA.

AgriMarketing Magazine 
AgWired.com
Associations, Inc.
Beck Ag Com, Inc./AgCall
Cargill
Cattlemen’s Beef Board
CHS
Colle+McVoy
DATACORE Marketing, Inc.
Diamond V
DTN
Elanco Animal Health
Farm Industry News/The Corn & Soybean Digest
Farm Progress Companies
Fastline Publications
High Plains Journal
Hoard’s Dairyman
John Deere Agricultural Marketing Center
KFRM Radio – The Voice of the Plains
McCormick Company
National Cotton Council of America
Osborn & Barr Communications, Inc.
Padilla Speer Beardsley/AdCulture
Pioneer Hi-Bred International, Inc.
Prism Business Media
Rhea & Kaiser Marketing Communications
Successful Farming