NAMA has named Leon Westbrock, CHS Inc., Executive Vice President and COO, Energy, as the 2009 Agribusiness Leader of the Year. This award, which is NAMA’s highest honor, will be presented at the Opening General Session of the 2009 Agri-Marketing Conference, “Hot Ideas, Sizzling Solutions,” April 16, 2009 in Atlanta, Georgia. The award honors outstanding leaders in agribusiness, education, government service or other agribusiness related areas who exemplify excellence in agribusiness by their significant contributions to the industry.
It is no secret that the energy industry has been on a rollercoaster ride for nearly two years. In fact, while unprecedented volatility has made this market cycle especially difficult, the industry has been through many periods of highs and lows over the last two decades. Through it all, Leon Westbrock’s calm drive, inspirational and empowering leadership style, and clarity in balancing market economics, customer needs and company operations have made him the ideal leader for the CHS energy business.
Westbrock leads the multifaceted energy business of CHS Inc., a Fortune 200 company providing essential resources in energy, grains and foods. CHS is the nation’s largest member-owned business (cooperative) and runs the largest cooperative-owned energy business in the United States. He is responsible for refineries, pipelines and terminals, and sale of refined fuels (gasoline, gasoline-ethanol blends, diesel fuel, biodiesel), lubricants and propane primarily marketed under the Cenex® brand through more than 1,600 Cenex branded retailers in 22 states.
Westbrock has learned the energy business and developed his deep leadership skills from the ground up. Beginning with childhood on a 640-acre grain-and-dairy farm in western Minnesota, then adding a degree in English from St. Cloud State University, a tour in the U.S. Army and a few years of teaching junior and senior high school English, Westbrock discovered his calling in the cooperative system. Beginning as a marketing intern for what was then called CENEX in 1976, then moving through member cooperative management and many positions in the energy area, Westbrock has never forgotten the importance of understanding what the customer needs, then working to meet those needs with both company and customer interests in mind.
He combines excellent people management with strategic capital investment and a farsighted approach to building the energy business within a rapidly changing world.
In 1997, Westbrock helped forge a joint venture between CHS and rival Farmland Industries to combine energy marketing platforms and resources. While difficult to establish and largely unexpected in the industry, this move was critical to long-term viability of the Cenex brand. “Leon also has the unique ability to create trust and partnerships, even with competing companies,” says Anwer Hussain, senior vice president, lubricants, CHS. “Leon’s leadership enabled formation of Country Energy (the joint venture), which ultimately resulted in CHS acquiring Farmland’s energy business. Without his vision, it would have been difficult to build and grow the Cenex brand profitably.”
Business partners have long appreciated Westbrock’s analysis and support. Terrence Bohman, president & CEO, Universal Cooperatives, Inc., says, “Our growth and expansion would not have been possible without Leon’s dedicated and proactive leadership as board chairman of Universal Cooperatives.”
“Our board has always relied on Leon for a marketing perspective,” adds Jim Loving, president of National Cooperative Refinery Association (NCRA). “Whether the issue is crude oil sources, the Sarbanes-Oxley Act or future diesel demand, we count on Leon for sound advice and input.”
Companies who supply services to CHS have long appreciated Westbrock’s intelligent approach. “What I love about Leon is that he challenges you to ensure you are grounded in your views,” says Phil Johnson, chief operating officer, Colle+McVoy. “He is willing to do things that are unconventional – like pursuing green causes years before it was popular – instead of taking the path of least resistance. He has pushed the CHS energy business to grow in areas that were not short-term wins, but were smart long-term investments. They were not the easiest course to take, but right for the company.”
As a cooperative, CHS provides patronage to its member cooperatives based on the products they buy, grain they sell and services they use, and determined by the overall financial performance of those businesses. Eligible members receive a portion of their patronage in cash, with the remainder becoming equity (ownership) in CHS. Higher corporate profitability enables CHS to return higher amounts of patronage to its cooperative customers.
Westbrock’s drive to increase value to customers while prudently using resources has resulted in consecutive years of record profits and record energy patronage to customers, with refined fuels patronage increasing from 2.70 cents per gallon in fiscal 2003 to 20.93 cents per gallon for purchases made in fiscal 2007, a 670 percent increase.
As a knowledgeable, trusted industry representative, Westbrock is frequently called on to provide insight to groups from member cooperatives to state and national political leaders. He willingly shares his time with these groups, helping to educate them and learning at the same time.
“Leon has always been willing to and has often helped with state and federal affairs issues,” says Bob Looney, vice president, Government Affairs, CHS. “He sets a great example by being involved with governmental affairs and that has trickled down to others in the energy business unit. In addition, federal officials and their staff members want trusted friends they can turn to for information and analysis of complex issues.” Westbrock engages in active dialogue with officials and staffers, explaining CHS businesses and what they should know about the role of energy and cooperatives in agribusiness and throughout the economy.
“He is generous with his time and is very comfortable working with many audiences,” Looney adds. “Leon is willing to change his busy schedule and react very quickly to our needs in Washington, D.C., or throughout the CHS trade area.