Dairy Farmers of America’s joint venture with the Chinese€¦ · Dairy Farmers of America’s...
Transcript of Dairy Farmers of America’s joint venture with the Chinese€¦ · Dairy Farmers of America’s...
DFA overview
• A farmer-owned cooperative
• Member farms across the US
– Nearly 9,000 member farms
– Produce 23% of all US milk
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DFA overview
• A farmer-owned cooperative
• Member farms across the US
– Nearly 9,000 member farms
– Produce 23% of all US milk
• Processing network
– 33 DFA managed facilities
– Invested in 77 facilities in total
• Diverse commercial businesses
– $5+ billion annual revenue
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DFA overview
• A farmer-owned cooperative
• Member farms across the US
– Nearly 9,000 member farms
– Produce 23% of all US milk
• Processing network
– 33 DFA managed facilities
– Invested in 77 facilities in total
• Diverse commercial businesses
– $5+ billion annual revenue
• Leading US dairy company
– $18 billion annual revenue
– Marketing 30% of all US milk
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Global Dairy Demand
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More People….More Money….More Places
150,000
160,000
170,000
180,000
190,000
200,000
210,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Domestic consumption U.S. milk production
U.S. milk production and consumption
13 Source: U.S. Department of Agriculture
Domestic consumption 10-yr. CAGR:
+0.4%
5.2%5.7%
5.3%5.8%
8.2%8.6%
9.4%9.8%
11.0%
9.3%
12.7%13.3%
13.2%
15.5% 15.4%
4.0% 4.3% 4.3% 4.6% 4.6% 4.9% 4.6% 4.5%4.1%
3.4%2.9% 3.0% 3.2% 3.0% 3.2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Tota
l mil
k so
lid
s, p
erc
en
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.S. p
rod
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ion
U.S. Dairy Trade Balance
Exports Imports
Note: 2014 is through December
Dairy Trade Balance Total milk solids, percent of U.S. milk production
14 Source: National Milk Producers Federation
10-year shift in U.S. milk production
Source: USDA National Agricultural Statistics Service
-24.6%
-36.4%
-38.7%
-22.1%
-23.9%
-20.9%-2.7%
-35.3%5.7%
-9.3%
-6.5%
-10.0%
-61.2%
-55.3%
-6.9% 35.2%
40.0%
-14.5%
-9.9%
-2.1%
-1.3%
0.9%
5.4%
-19.4%
-49.4%
32.4% -64.9%
20.7%
43.0%
65.1%
13.5%
46.2%
-31.0%-28.5%
32.2%
40.0%
-42.1%
17.9%
-26.8%
30.8% 36.6%
-36.6%
68.7%
9.1%
-8.8%
-37.3%
14.6%
72.4%
Milk Production Shift
3-year average (2000-02) vs. (2009-11)
Increase greater than 25% (12)
Increase f rom 10 to 25% (4)
Increase f rom 0 to 10% (4)
Decrease f rom 0 to 10% (9)
Decrease f rom 10 to 25% (6)
Decrease greater than 25% (13)
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China’s food challenge
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People
Farmland
Fresh Water
7 percent
3 percent
22 percent
• Enter markets where we can compete
• Focus on volume growth and “premiumization”
• Follow our U.S. customers and develop relations with leading local companies
• Build lasting relationships with like minded businesses
• Understand and manage risk
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DFA’s Approach