BayWa Agri Supply &Trade One Team One Culture · 2020-01-16 · New business growth: Drive customer...

BayWa Agri Supply &Trade

One Team – One Culture

Business Unit Presentation As of October 2019

BayWa Group

Introduction

▪ Founded in Munich in 1923

▪ Leading trading and services group

▪ Corporate culture based on cooperative roots

▪ Core segments of Agriculture, Energy and Building Materials

▪ Approximately 18,000 employees

▪ Over 3,000 locations in more than 40 countries

▪ Worldwide 313 affiliated companies

▪ Stock listed company

Our Company

The BayWa Group

At a Glance

BayWa Agri Supply & Trade

Our Executives

Prof. Klaus Josef LutzChief Executive Officer

▪ Appointed CEO of BayWa in

2008

▪ Degree in law from the Ludwig-

Maximilians-Universität in

Munich

▪ Previously served as managing

director at Süddeutscher Verlag

GmbH

Andreas HelberChief Financial Officer

▪ Joined BayWa in 2000 as head

of finance; CFO since 2010

▪ Degree in business from the

Universität Siegen

▪ Previously served as a tax

advisor and accountant at

KPMG Deutsche-Treuhand-

Gesellschaft AG

Marcus PöllingerManagement Board Member

▪ Joined BayWa in 2008 as

CEO assistant; board member

since 2018

▪ Degree in business from the

Munich Business School

▪ Previously served as General

Representative for Building

Materials and Agri Trade &

Service at BayWa AG

Matthias TaftManagement Board Member

▪ Joined BayWa in 2015 as a

member of the executive board

▪ Degree in Mechanical

Engineering from the

Technische Universität

München

▪ Additionally serves as CEO at

BayWa r.e. renewable energy

GmbH

Reinhard WolfManagement Board Member

▪ Joined BayWa in 2013 as a

member of the executive

board

▪ Degree in agricultural

economics from the

Universität Wien

▪ Additionally serves as CEO at

Raiffeisen Ware Austria AG

and board member at

Raiffeisen-Holding NÖ-Wien

The BayWa Group

Management Board


Corporate value creation:Maintain a visionary group portfolio management

Organisational excellence:Foster performance through team and collaboration5

Operations and brand excellence:Excel at all customer touchpoints beyond sales4

Digital transformation:Increase digitization in business models and organisation

Our Direction

Corporate Strategy

Business continuity:Improve competitiveness and protect

leadership in core business

New business growth:Drive customer centric and innovative

business models

3

21

6

Customers▪ Farmers

▪ End customers

▪ Industry

▪ Commerce

▪ Trade

▪ Financial investors

Business Model

Markets▪ Agriculture

▪ Energy/ renewable energies

▪ Building Materials

Operating activities▪ Trade

▪ Logistics

▪ Services

▪ Finance

▪ Project development

Unique selling proposition▪ Customer proximity through full-

coverage network for sales and

logistics

The BayWa Group

Business Model and Corporate Strategy


Our Values

Solidity: the firm foundation for sustainable

growth

Trust: the basis for a strong partnership

Innovation: the development of

new products and solutions for a

partnership that is fit for the future

The BayWa Group

Brand Values


BayWa Group

Vision & Mission

We serve basic human needs, providing leading

solutions for food, energy and buildings.

BayWa Vision

For our customers, we are the trusted partner. We

connect products, advice and services, enabling our

customers to achieve their best.

BayWa Mission


EnergyAgriculture

Revenues 2018: 11,016 EUR m 3,968 EUR m 1,617 EUR m

Revenues 2018:

16,625 EUR m

10.7 EUR m

Global Produce

BayWa Group

Agriculture

Equipment

Agri Trade &

Services

BAST(BayWa Agri Supply &

Trade)

66%

Renewable Energies

ConventionalEnergy

24%Building

Materials

Building Materials

10%Innovation

& Digitalisation

Digital Farming & E-Business

The BayWa Group

Segment Breakdown


BayWa Agri

Supply & Trade

Business unit profile

What – our offer:

Facilitating agricultural

supply


Our Purpose, Offer and Approach


How – our approach:

Supportive

by nature

Why – our purpose:

The European

Agri-Service, Supply and Trade

Company, with a global reach

What – our offer:


supply




Supportive

by nature


The European





Our Vision & Mission

Active in agriculture businesses, operating

internationally, with a long term focus, fostering

excellent relationships with its partners

Mission BAST

The European Agri-Service, Supply and Trade

Company, with a global reach1)

Vision BAST

1) NOT a global commodity trading company with the scope of ABCDs



Our Strategy

Active in agriculture

businesses, operating internationally,

with a long term focus, fostering

excellent relationships with its

partners

Strategic Impacts 2020

Define structure, roles & responsibilities

that ensures strategy execution, efficiency4

Augment portfolio with global reach

In key Sourcing and destination markets3

Diversify product portfolio

with specialties and services 2

Extend customer supply in Southern Europe

and agri-services in existing and CEE markets1


Mission for BAST

What – our offer:


supply





Supportive

by nature

The European





About us

− providing efficient marketing of agricultural products allowing

customers to profit from diverse market access points

− presence in the most important market and stock exchanges

− long-term customer relationships

− access to reloading points and a well-established supply chain

The core business

National and international sale of agricultural commodities

from the purchase of raw materials to the punctual delivery of

the right quality to our trade partners and processors,

including the animal feed and mill industries.


Our role in the agri-products marketShort description

Company history BayWa AG acquisitions Footprint

Stock listed in Germany as ‘Prime Standard’Production ProcessingTradingOrigination

Sourcing, trading, supplying of various

agricultural goods to the feed, food &

Fuel markets in Europe and worldwide

United Kingdom/ Ireland

BeNeLux

Germany/ Austria/ Switzerland

Russia/ Ukraine

Poland

Hungary

Italy

Spain / Portugal

With a trade volume of 25 mil tons …

… and more than 500 employees …

… in more than 29 offices in 19 countries …

… BAST group is Europe’s trader No.1

Origination of various agri-produce mainly in Southern

Germany directly from the farmer

NU

MB

ER

Distribution

2012

2015/2016

2016

2017

2018

2019


At a glance



Entity & Volumes

We expect to trade over 25.0 million tonnes in 2019

This graph includes ca. 3.1m mt of intra-company sales


The core services


About portfolio

− Procurement and sale of agricultural products

worldwide

− Product portfolio comprises grain, oilseed and

supplementary products

− Expansion of specialties trading: malting barley, hops,

beans, organic grain…

− Trading of approximately 26 million tons of grain

and oilseed per year

− Global supply chain management and logistics

services

− Import and export of agricultural products through

own domestic and deep-water ports

− Largest soy importer for the European feedstuff

industry



Product Portfolio Overview

Overview of product portfolio of BAST trading activities

GRAINS

Milling Grains

Feed Grains

Malting Grains

SOYA

Soybeans

Soybean Meal

Soybean Hulls

CO-PRODUCTS

Oilseeds

Oilseed Meal

Co-Products

In total the BAST Group trades over 25 million tonnes of Grains & Oilseeds

SPECIALTIES

Minerals

Derivatives

Other Specialties

Volume



Timeline – BayWa, Cefetra & BAST affiliates

Foundation of Cebeco

Handelsraad

Cebeco Feed Trading

(Cefetra) was founded

as a spin off

Foundation of Cefetra

Hungary Foundation of Cefetra

Polska Sp z o.o

Joint venture of Baltic

Grain Terminal

Cefetra setup

Canadian branch

Acquisition of Cefetra

Group by BayWa

1899 1988

Acquisition of

McCorkell Glasgow

1999 2002 2004 2005

20102012

Foundation of

BayWa in Munich

Acquisition of 2

inland silos in

Poland

2009

1923

Implementation of “Strategy

2020” and BayWa Agrar

International

2014

Foundation of

Cefetra SpA in

Rome, Italy

2014

Foundation of

Cefetra Iberica in

Madrid, Spain

2014

Foundation of

BMTI

2015

Acquisition of

Evergrain,

Germany

2016

Acquisition of

Wessex Grains by

Cefetra Ltd

2015

Acquisition of

Thegra Tracomex,

The Netherlands

2017

Foundation of

BayWa Agri

Supply & Trade

2015

Purchase of inland

silo in Poland

2011

Acquisition of

Premium Crops,

United Kingdom

2018

Acquisition of Royal

Ingredients Group,

The Netherlands

2019

Supply & distribution

agreement with Sirius

Minerals, UK

2019

Implementation of

“Strategy 2024”

2020



Structure of business unit

Management Board BayWa Agri Supply & Trade

R. van Gelderen (CFO) D. Vriens (CEO) R. van der Zee (CCO)

Cefetra

BNL

Cefetra

UK*

Cefetra

PL

Cefetra

HU

Cefetra

FS

Cefetra

Italy

Cefetra

IbericaBMTI Evergrain

Traco-

mex**

Soya

Milling Grains

Feed Grains

Co-Products

Soft Seeds

Malting Grains

Risk

Finance

HR

Specialties

IT

Market Intelligence

Legal

[…]

Global Books Functions

Entities

BayWa AG

K.J. Lutz (CEO)A. Helber (CFO)M. Pöllinger M. Taft R. Wolf

* Including Premium Crops ** Tracomex Group including Biocore etc.

RIG


Daan Vriens

CEO

Remco van Gelderen

CFORobert van der Zee

CCO


Management Board


What – our offer:


supply





Supportive

by nature

The European




Company values Brand values


Company values relevant for our future

Brand

Values

Company

Values

innovation solidity trust

BayWa Brand Values:united for success



Our Brands


− Independent

− Efficient

− Competent

− Responsible

BAST Brand Values:

− Committed

− Entrepreneurial

Our unique selling points..

Efficient

Customer

centric

Independent

.. leading to the ability to win in next 5 years

➢ Business system

excellence (cost)

➢ Lean & decisive

structure

➢ Economies of scale

➢ Agile

➢ Decentral structure close to the customer

➢ Asset light, reinforcing our agility

➢ Entrepreneurial

➢ Trusted partner

➢ Not competing with

our suppliers &

customers


Positioning to win


Cefetra BVThe Netherlands

Company Profile

Cefetra BV

At a glance

The core business of Cefetra:

Cefetra markets the following raw materials:

Grain: Wheat, corn, barley, triticale, rye, oats & field peas

Proteins: Soybean meal and soybeans

Co-products: Sunflower meal, rapemeal, wheatbran, palmkernel

expellers, sugarbeet pulp & oilseeds

The Rotterdam-based trading company Cefetra is one of the

largest importers of agricultural raw materials in Europe and

delivers their product to the animal feed, food and fuel

industries. The supply of the animal feed industry makes up

approximately 90% of the commercial business. The

remainder of the business is supply to the food and fuel

industries.


Cefetra BV

Key facts

With75 FTE‘s in the

Rotterdam office ...… we physically move13 mln MT, equalling …

3product groups:

• Grains

• Soya

• Co-products

… resulting in

a total revenue of

€3.0 billion ...

220 panamaxes or 450.000 trucks ...

… over

… and 50+ products.


Cefetra BV

Volumes

− Mainly compound feed but also food and fuel

− 5 biggest clients only make up for 25% of our volume

− “Big or small, we go for them all”

Client base

− We supply over 50 different commodities and

ingredients

− Focus is on expanding our niche products and truck

business.

− Continue to enable efficient supply chains in

traditional commodities

Diversification and focus

~0.3

mm

~0.1

mm

36%

34%

30%

Volumes by desk

SOYA

GRAINS

COPR

28%

18%

12%

10%2%

2%1%

1%

3%

23%

Volumes by destination

NL

DE

GB

BE

FR

HU/PL

ES

CZ/SK

other


Most supportive customer supply partner

for agri products in Europe.

Cefetra BV

Brand Profile

Brand Core Values Cefetra Positioning

Flexible Customer

Committed

Modest

Sharing

Expertise

Caring

Reliable Sincere

Solution

Driven

Supportive

We sincerely believe that supporting our customers will grow

(y)our business. Our WHY is wanting to be SUPPORTIVE.

The drive of an altruist: To protect and take care!


BAST

Cefetra BV

Important themes: feed safety, quality, sustainability


Cefetra Feed ServiceThe Netherlands

Company Profile

Cefetra Feed Service

At a glance

The core business of Cefetra Feed Service:

Cefetra Feed Service markets the following products:

High proteins: Potato protein, corngluten meal, SPC

Minerals: Limestone, salt, MCP, sodium bicarbonate

Oils & Fats: Soybean oil, palm oil, sun oil, rape oil,

linseed oil, PKFAD, lecithin

Co-Products: Corn gluten feed, linseed, luzern, molasses

Cefetra Feed Service is a one-stop-shop for the feed

industry when it comes to small commodities and specialties.

Detailed product knowledge, logistical know-how and focus

on New Business Development. This enables Cefetra Feed

Service to meet specific customer needs and offer efficient

supply chain infrastructure with maximum flexibility at

competitive prices.



Key facts


Rotterdam office ...… we physically move 625 K MT, equalling …

4product groups:

• Minerals

• High Proteins

• Oils & Fats

• Co-products

… resulting in

a total revenue of

€175 million ...

100 barges / trains and 25.000trucks ...

… over



Efficient and tailor made logistics

Bags, Big bags, Flexi bags and Bulk

into

Containers, Tanks, Trucks, Trains, Barges and Vessels


Brand Profile

Brand Core Values Positioning

Flexible Customer

Committed

Modest

Sharing

Expertise

Caring

Reliable Sincere

Solution

Driven

Supportive

We sincerely believe that supporting our customers will grow

(y)our business. Our WHY is wanting to be SUPPORTIVE.

The drive of an altruist: To protect and take care!


Cefetra LtdUnited Kingdom

Company Profile

Cefetra Ltd

At a glance


Cefetra markets the following commodities:

Grain: Wheat, barley, maize, oats, rye, OSR, peas & beans

Co-products: Soyabean meal, DDGS, sunflower meal, rapemeal,

wheatfeed, gluten, pk, beetpulp, & soyahulls

Cefetra Ltd is focused on the agricultural markets in the UK

and Ireland servicing the feed, food/drink and fuel

businesses. Cefetra Ltd builds strong sustainable supply

chains in a wide range of agricultural commodities. The

business operates an unrivalled logistical network of ports

and stores giving full coverage across the whole of Ireland

and the UK. Cefetra also has a nationwide grain origination

capability.


…Over 50commodities supplied

Cefetra Ltd

Key facts

125+ FTE‘s in offices/stores

Glasgow, Newry, Henstridge, York,

Stokeferry & Sudbury

… we physically move 4.5 mln MT…

… resulting in

a total revenue of

€1.0 billion ...

…775 + trucks loaded per day…

…operating from 30 ports and 39storage facilities


Rosyth ‘as is’ Belfast store and portRosyth ‘development’

Cefetra Ltd

Ports


Premium Cropsdivision of Cefetra Ltd

United Kingdom

Company Profile

Premium Crops

At a glance

The core business of Premium Crops:

Premium Crops contracts the following crops:

Spring linseed, millet, red wheat, HEAR rapeseed, canary seed, winter

linseed, spring naked oats, borage and lupins

Premium Crops has established itself as the leading

specialist arable merchant for the UK. Premium Crops have

exclusive long-term supply agreements with customers. It

fulfils these requirements by contracting the production with

farmers, selling them their planting seed requirement,

supplying them with the technical know-how to best-grow the

crop and then organizing the logistics from farm to end-user.

Premium Crops has a full trials and evaluation ability for new

varieties and crop opportunities


…Over 700farmer suppliers

Premium Crops

Key facts

With15 FTE‘s in the Hampshire office… … 9 speciality crops…

Long-standing

exclusive supply

agreements…

…national coverage…

and strong brand recognition


Premium Crops

Leaders in premium & specialist crops


Cefetra Sp z o.oPoland

Company Profile

Cefetra Sp z o.o

At a glance

Main role in the market:

Cefetra Polska collects from farmers and supplies to consumers the

following raw materials:

Grain: Milling and feed wheat, corn, barley, triticale, rye, oats

Proteins: pulses and imported soybean meal

Oilseeds: rapeseed and soya beans

Cefetra Polska is leading supplier of raw materials for feed

and milling industries in Poland.

Majority of products is sourced locally, through origination

network and grain silo owned and rented by the company.

Companies from BayWa Group supply Cefetra Polska with

SBM and provide outlet for milling wheat export to third

countries


Cefetra Sp z o.o

Key facts

With47FTE‘s in office,

and 25 FTE‘s in silo…

… we originate 250 000 MT…

4grain silo‘s with

total capacity

of 110 000 MT…

… resulting in

a total revenue of

€200 million ...

…a trading volume of1mln MT per year…

… with

... with a dehulling line of 20k capacity per

annum in Dobre Miasto silo


Cefetra KftHungary

Company Profile

Cefetra Kft

At a glance

The core business of Cefetra Kft:

Cefetra Kft markets the following raw materials:

Grain: Wheat, corn, barley, triticale,

Proteins: Soybean meal, Donau soya

Co-products: Sunflower seed, rapeseed

Cefetra Kft is located in Budapest, Hungary. The aim of the

Hungarian location is to trade, import and distribute

agricultural commodities from the Hungarian market to the

EU market and from world market to Hungarian market.


Cefetra Kft

Key facts


Budapest office ...… we physically move1mln MT, equalling …

3distribution areas

• Domestic 400k

• Regional/EU 550k

• World market 50k

…17years in

business…

…450k trucks, 300k trains and 250k barges…

… with…farmer connection,

country coverage…


Cefetra Ibérica S.L.Spain/Portugal

Company Profile

Cefetra Ibérica S.L.

At a glance


Cefetra Ibérica‘s strategic objective is to be Iberia‘s reference

player in the supply of agri raw materials.

Focus on both origination and distribution, aiming to offer the

largest portfolio and to attend our customers with a clear service

orientation

We are focused in the feed and food industries aiming to have an

overall presence across the peninsula.

Company started operations in January 2015.

Cefetra markets the following raw materials at the Iberian peninsula:

Grain: Wheat, corn, barley, triticale, rye, oats & field peas

Proteins: Soybean meal and soybeans

Co-products: Sunflower meal, rapemeal, wheatbran, palmkernel

expellers, sugarbeet pulp & oilseeds


…selling to over 350different clients across all the peninsula


Key facts

With21FTE‘s in Madrid office... …we have moved9mln MT… in 4 years

of operations…

… resulting in

a total revenue of

€380 million ...

… 360k trucks, enough to create a queue of

consecutive trucks from Madrid to Moscow, Russia…

…operating from 15 ports and

storage facilities.



The industry and the market at Iberia

Iberia is a big Grain and Feed raw material consumer

GR

AIN

AN

D F

EE

D C

ON

SU

MP

TIO

N 4

0 M

MT

17

/25

MM

T

15/2

3 M

MT

Implies a

recurrent net

grain importer,

with an average

coverage around

40% of its grain

needs with

foreign goods.

Big volatility of

domestic crops,

due to droughts

and soil

characteristics

Big ethanol Producers

Meat integrators

Free market feed compounder

Food products

Customers

• Iberia is one of the biggest meat producers

in the EU, with a big and competitive

infrastructure around that industry.

• Heat, lack of water and irregular orography

result in a high volatility on grains

production and low yields, unable to cover

the domestic demand. The remaining

consumption has to be covered by imports.


Cefetra SpAItaly

Company Profile

Cefetra SpA

At a glance

Main role in the market:

Cefetra SpA trades the following raw materials:

Grain: wheat, corn, barley

Proteins: soybean meal, sun meals and soya beans

Co-products: soya hulls

Our vision is to develop for BayWa a Mediterranean trading

company dedicated to supply and to service, on a tailor-

made basis, a number of Italian consumers and

Mediterranean basin importers particularly well positioned in

specific “niche” markets.


Cefetra SpA

Key facts


Rome and Ravenna office ... … we physically move1.6 mln MT…

2distribution areas

• Domestic

• Mediterrranean

…4years in

business…

…operating in 10 Mediterranean destinations…

… with

…final user direct access.


Cefetra SpA

Qualities

Qualities

>30 years of experience in

oilseeds

Competitive & strategic company

Management talent

Experience freight & logistics


Cefetra SpA

Commodity breakdown

15%

50%

8%

27%

Commodities

Beans

Meal

Co-products

Grains


Cefetra SpA

Logistics


BayWa Marketing

& Trading

International BVThe Netherlands

Company Profile

The core business of BMTI:

BMTI adds global reach to the core commodities in grains

and oilseeds. The company trades outside the group’s

traditional markets with a focus on functional flows.

The company is headquartered in Rotterdam and has offices in Kiev and

Moscow.

Our function derives from expertise in:

- structured trade finance

- logistics

- pricing solutions

Operative in markets where group companies are not present. e.g. Black

Sea, MENA consumer markets.

Creating and exploiting global arbitrage opportunities with in house

origination at their core.

BayWa Marketing & Trading International (BMTI)

At a glance


BayWa Marketing & Trading International

Key facts

With25 FTE‘s... … we physically move3 mln MT, equalling …

… resulting in

a total revenue of

€450 milion ...

... with11different nationalities in 3 offices ...

…started October 20144product groups:

• Milling Grains

• Feed Grains

• Oilseeds

• Pulses

… over


Evergrain GmbHGermany

Company Profile

Evergrain Germany GmbH & Co. KG

At a glance

The core business of Evergrain:

Evergrain is a dynamically growing trading company

headquartered in Hamburg which specializes in the

procurement and marketing of brewing grains.

- procurement of high-quality brewing grains in most major export

markets worldwide and in direct cooperation with local originators

and logistic partners

- marketing of high-quality brewing grains to regional and

international customers of the malting brewing industries

- price and time optimization of commodity flows and innovative and

sustainable pricing mechanisms serving customer interests



Key facts


Hamburg office ... …we collect270 000 MT…

35

…resulting in

a total revenue of

€150 million ...

…in over

…consolidated since January2016

countries worldwide…

…and we trade900 000 MT…



Trading

Malting barley trading Evergrain


Company Profile

Tracomex BVThe Netherlands

Tracomex Group

At a glance

The core business of Tracomex:

Tracomex is an international trading company with more

than 100 years of experience in the trade of agricultural raw

materials destined for human consumption, the feed and

petfood industry

Tracomex trades the following raw materials:

Grain: Barley, corn, oats, millet, rye, sorghum, spelt, triticale, wheat

By-products: of barley, cocoa, corn, grass, groundnut, linseed, malt, oat

rapeseed, rice, spelt, sunflower, soy, wheat, DDGS

Pulses: Horsebeans, lupines, peas

Oilseeds: linseed, rapeseed, soy beans, sunflower seed

Oils: Linseed oil, soya oil, rape oil

Rice: Longgrain rice, broken rice


Tracomex Group

Key facts

With35FTE‘s... … we physically move1mln MT, equalling …

4companies:

• Tracomex

• Thenergy

• Riveka

• BioCore

… resulting in

a total revenue of

€250 million ...

... Trading over 50 different products…

… in

…consolidated since January2017 BayWa Agri Supply & Trade

Tracomex Group

Key facts

Company: Tracomex Group

Headquarters: Oosterhout, The Netherlands

Revenues: ca. EUR 250 m

Employees: approx. 40

BayWa stake: 100%

Trading volume: approx. 1 million tons per year

Countries: BeNeLux

Subsidiaries:

− Tracomex B.V., Oosterhout, The Netherlands

− Thenergy B.V., Oosterhout, The Netherlands

− Riveka BVBA, Boom, Belgium

− BioCore B.V., Weesp, The Netherlands

Consolidated since: January 2017

Tracomex B.V.

The Netherlands

Thenergy B.V. BioCore B.V.

The Netherlands

Riveka BVBA

Belgium

100%

The Netherlands

BayWa AG



Thenergy BVThe Netherlands

Company Profile

Thenergy BV

At a glance

The core business of Thenergy:

Thenergy is an international trading company aimed at

optimizing the value of by-products and ‘non-conforming’

product no longer suitable to be used as an ingredient in

food or feed.

Thenergy is active in following industry and markets:

• Supply of goods to bio-energy production (biogas).

• Supply of goods for nutrient recovery though use in fertilizers or

compost.

• Supply of goods for use in renewable chemicals and building materials.


Company Profile

Riveka BVBABelgium

Riveka BVBA

At a glance

The core business of Riveka:

Riveka is a trading company based in Belgium. Its focus lies

on niche co-products from the milling-, malting-, and rice

Industry. These products are intented for the compound feed

industry, pet food producers and biogas installations. Active

in the Benelux, France, the UK and Germany. Riveka is

expanding its activities in synergy with the Tracomex and

Cefetra portfolio. Support and service are the key elements

in the relationship with its customers.

Riveka trades the following raw materials:


By-products: of barley, cocoa, corn, grass, groundnut, linseed, malt, oat

rapeseed, rice, spelt, sunflower, soy, wheat, DDGS


BioCore BVThe Netherlands

Company Profile

The core business of BioCore:

BioCore is an international trading company with more than

25 years of experience in the trade of organic agricultural

raw materials, which are for human consumption and the

feed industry.

The nature of the organic trade demands a solid track and trace system. We work

in close cooperation with many organic farms and collectors. Through our office

in Ukraine we have direct access to the Ukrainian organic market, which is an

important source for our raw materials. BioCore sources most of the organic raw

materials from: Ukraine, Russia, Rumania, Baltics, Spain and Poland.

BioCore trades the following raw materials:


By-products: of barley, corn, grass, oat, rapeseed, spelt, sunflower, soy, wheat.

Pulses: horse beans, lupines, peas

Oilseeds: linseed, rapeseed, soy beans, sunflower seed

Oils: Sun oil, soya oil, rape oil

BioCore BV

At a glance


Royal Ingredients Group

At a glance

The core business of Royal Ingredients:

Royal Ingredients markets the following materials:

Proteins: Vital wheat gluten, soya concentrate/isolate, potato protein, pea

protein, corn gluten, fish meal

Starches – Flours: Corn starch, potato starch, wheat starch, pea starch,

tapioca starch, cationic starches, potato flakes

Sweeteners & Polyols: Glucose, maltose, dextrose, maltodextrine,

sorbitol,

Specialties: Chia, quinoa, wheat, bakery seeds, calcium

propionate, instant yeast etc.

Royal Ingredients Group supplies conventional and organic

ingredients for food-, feed-, and industrial applications.

Serving more than 500 active customers in over 60 countries

worldwide. Only active in business-2-business markets


Royal Ingredients Group

Key facts


With41FTE‘s in 6 offices we physically move120.000 MT…

4product groups:

• Proteins

• Starches & flours

• Sweeteners & polyols

• Specialties

… resulting in

a total revenue of

€115 million ...

serving over 500 customers in 60 countries…

… over


Agrar Germany

Company ProfilePart of business unit „BayWa Agrar“

Agrar Germany

At a glance

The core business of Agrar Germany:

Agrar Germany markets the following main raw materials:

Feed grains: Barley, corn, feed wheat

Milling grains: Wheat, rye, durum, spelt wheat

Oilseeds and pulses: Rapeseed, peas

Feedstuff: Soyameal, rapemeal, DDGS, sugar byproducts

Agrar Germany sources and trades grains, oilseeds & co-

products from farmers (via BAV) and third parties, whilst

distributing these raw materials to local industries (e.g.

millers and compound feed) or selling FOB to export

markets.


Agrar Germany

Key facts

Combining origination at the farmer

and wholesales activities… … trading a volume of5 mln MT…

4product groups portfolio:

• Feed grains

• Milling grains

• Oilseeds & pulses

• Feedstuff

… export through2 ports

with access to Baltic Sea…

…storage capacity of 1.7 mln MT…

… with

… exporting1.5 mln MT.


Agrar Germany

Key facts


Agrar Germany sources and trades grains,

oilseeds & co-products from farmers (via BAV) and

third parties, whilst distributing these raw materials

to local industries (e.g. millers and compound feed)

or selling FOB to export markets.

Origination /

Sourcing

Inland Logistics

(Rail/Road/Boat)Distribution

Operations

Agrar Germany

Business Model


Purchase volume ∑5.0 Mio. T(farmers, cooperatives, traders)

Sales volume ∑5.0 Mio. T(mills, energy/starch, feed industry, reseller, farmers)

National Input / Collection National & International Trading

FarmingProduction

Origination &

Sourcing

(wholesale)

Storage /

Logistics /

Services

Trading & Supply

Wheat

Milling grain

Malting grain

Feed grain

Corn

Oilseed

Oilseed meal

Co-Products

Pulses

Raw materials

Ex harvest /

Post collection

of grain & oilseed

Processing

Drying

Storage

Transportation

Trading strategies

Position steering

Risk management

Grain mills

Oil mills

Energy / starch

Feed industry

Resellers / farmer / others

Processing

Resellers / Traders

Agrar Germany

Function


Purchase

− Information supply for (ex-harvest, post-

harvest) origination

− purchase calculation towards farmers by

daily price quotations for all commodities

− Position steering and management of

stocks

− Additional Sourcing by third party originators

− Supply of feed stuff via purchase of industry &

wholesale

− Building a physical flow to provide a all year

long liquidity for important products

− Business with industry, wholesale and

distributors within EU (from a single flat price

contract to strategic partnerships)

− Hedging at future markets and hedging via

physical liquidity

− Logistics / supply-chain contracts

(shipping, train, truck)

Sale

Agrar Germany

Ports


Mukran (Rügen)Vierow

XXXXX

Partner/Customer

We and you.

Company name

We and you


Toolbox: Icons


More BayWa Icons to be found:

Via BayWa brand portal

Click „Ein-Klick Login“ (for BayWa AG), use smart access „Medienpool“,

click „Piktogramme“. Our icons are continously developed.

BayWa brand portal (Link)


https://www.baywa-markenportal.de/AdvancedSearch.do

Name Green Grey White

Milling

industry

Algorithm

trading

Specialties

Commodities

Non-GMO

Data

management

Data

protection

Data

security

Blockchain


Drones

Artificial

intelligence

Online

platform

People

network

Data

connectivity

Satellite

geodata

Organic

Regional local

Selection of BAST icons

Available and clickable


Worldmap

Companies

Building

Factory

Market price

Calendar

Computer

Smartphone

Data


Ship

Port

Airplane

Logistics

Silo

Wind power

Digital farming




Wifi

Confirmation

Update

Search

Monitoring

Position

Localisation

Ideas

Waste bin

Selection of BayWa icons

Available and clickable


Bio electricity

Bio mass

Bio gas

Water

Soy

Coproducts

Hop

Grain

Apple


Pig

Chicken

Sheep

Cow

Horse

Cutlery

Toolbox: competences and examples


Purpose

Leading European

solution provider of

agricultural ingredients

Offer

Facilitating

agricultural supply

Approach

Supportive

by nature

Independent

Operating independently from specific

regions, growing and processing

makes us focusing on our customer

(consumer and supplier) needs

Committed

We take responsibility and act result-

oriented, customers are our partners

who we are providing expertise,

network, solid & tailor-made solutions

Competent

Market insights, deep understanding of

industry needs as well as of price-

building and supply options enable us

to outperform for our customers

Efficient

Our pragmatic and well structured

processes are base for a lean and

performing organization and make us

cost leader in our business environment

Entrepreneurial

We are self-driven and continuously work

to enhance or set of capability and

solutions for our customers, embracing

and driving innovation

Responsible

We act responsible, people, environ-

ment, resources and quality are vital

part of our business drive our leading

solutions for sustainable value chains

Business unit development

Our Value: One Team – One Culture



Our Independency


➔ ➔

BAST

Buying – Shipping – Supplying

Operating independently from specific

regions, growing and processing

makes us focusing on our customer

(consumer and supplier) needs


Our Efficiency


Target and measure cost efficiency

One of our KPIs: Overhead per ton

Decentralized structures

In Europe: Small business teams with own P&L

Leverage and scale of competences for group benefit

for instance: Global Books, Market Intelligence

Our pragmatic and

well structured

processes are base

for a lean and

performing

organization and

make us cost leader

in our business

environment


Our Commitment


➔ ➔

BAST


We take responsibility and

act result-oriented,

customers are our partners

who we are providing

expertise, network, solid &

tailor-made solutions

right time

right quality

right quantity


Demand

Specific customer demand

• Non-commodity crops

• Crops normally not grown but for

specific customer need e.g. HEAR

• Specific varieties with particular

traits for customer benefit, but not

widely grown e.g. NuLin linseed

• Customers requiring strategic

production e.g. geographical crop

risk or visibility to a competitor

• Geographical location imparts

particular quality benefits e.g. GLA

content in Borage

• Full traceability from seed

supplied to the farmer to crop

delivery

Acquisition Premium Crops in 2018

Solution

Value offer

➢Premium Crops contracts farmers to grow

specific crops for their customers.

➢Premium Crops selects the best genetics

to satisfy the requirements of customers

and farmers.

➢Premium Crops contracts specific varieties

with a fully traceable system

➢ Long terms agreements – up to 3 years

➢Deep relationships; customers are reliant

on Premium Crops for certain raw

materials


Our Commitment – Example: Premium Crops


Our Competence


➔ ➔

BAST


Market Research & Intelligence

(like S&Ds, funds, harvest prediction)

Trade Finance, Forex &

Document management

Fundamental Market insights &

Quantitative intelligence

Global Partner Network

Nutrition, ingredients and industry

knowledge (and ‘how to supply’)

Market insights, deep understanding of

industry needs as well as of price-

building and supply options enable us

to outperform for our customers


BAST commitment Market research desk

Demand

supply chain manager

position needed

opinion on the market

need for market information

market research

used as marketing tool!

Solution

Support trade by making trade decisions

✓ Collecting data worldwideS&D’s of 23 commodities

(grains, oilseeds complex, co-products)

Follow related markets

such as biofuels, sugar, cotton, livestock

Macro economic analysis & outside markets

Technical analysis

✓ Maintain an information network (speculative funds, policy..)

✓ Interpret the collected information

✓ Translate the information into signals

Challenge the trade on their positions

Customers benefit from the independent and

transparent market information provided

Better procurement decisions


Our Competence – Example: Market Research


Creating specific flows of ingredients

➢ Organizing flows of similar composition to

minimize variability

Demand

The level of nutritional knowledge in the feed sector is

very high and still increasing

precision nutrition of livestock animals enables

an cost-efficient and sustainable animal protein

production

Naturally occurring variability in the feed stuffs can be

limiting factor to accurate feed formulation

.

Sources of variation in feed ingredients composition

➢ Country/region of origin

➢ Seasonal variability

➢ Processing (co-products)

. Nutrient variability in raw materials can lead to:

• Overestimating the nutrient profile → not providing

the animal with the nutrients as calculated

• Underestimating the nutrient profile → not using the

maximum potential nutritive value

. Using an average value is not sufficient anymore!

.

Solution

Cefetra has developed a program for

the problems of nutrient variability in

raw materials

Having more knowledge about the general variability

➢ Database of Cefetra feed material flows

➢ Understanding variation causes

➢ Understanding variability impact per ingredient

and animal feed

Monitoring/predicting current variability

➢ Continuous sampling and analyzing ingredients

➢ Providing customers with data


Our Competence – Example: Product knowledge


Demand Solution

Over the last twenty years our markets

witnessed a huge inflow of speculative

money.

To have a better understanding what speculative

money is doing, BAST started two projects:

Quant desk

➢ Hedge funds using algorithmic trading

strategies

➢ More speculative money and algorithmic

trading the way markets behave has

changed.

Blink- Trend Following -

➢ On a daily basis we obtain trading signals from an

experienced hedge fund, which gives us insights

into trend following trading strategies

Blitz- Short Term Strategies -

➢ Joint effort with another hedge fund.

➢ We gained better understanding what short term

(intraday – couple of days) quantitative hedge funds

are doing. E.g. USDA WASDE report, where

algorithms are trading within the first second of the

report

Via exclusive partnerships with two hedge funds

BAST can give customers an unique insight into

what algorithms are doing


Our Competence – Example: Quantitative projects

Digital

Initiatives

Self-

Billing

Vista

Geo

Power BISpain

Inputs

AI

QuantumRock


Our Competence – Example: Digital initiatives


Continuous NBD program in product & supply skills

for instance: Faba Beans dehulling, Pulses for starch industry


Our Entrepreneurial Spirit


Market insights,

deep understanding

of industry needs as

well as of price-

building and supply

options enable us to

outperform for our

customers

Portfolio enlargement by specialty products & supply chains

for instance: Tracomex group, Premium Crops Limited

Enforcing innovation processes

for instance: BayWa Digital Farming, Agrar Accelerator

New skills development in trading

for instance: Geo Data analytics, Algorithm trading


Consumer trends often lead to the introduction

of many new market concepts. These market

concepts require changes from the farmer and

the feed compounder how to feed livestock

animals

Example: a more local feed

➢ Need for more European, high quality protein

is increasing

➢ Transparent, sustainable supply chains are

becoming more important in food production

➢ Faba beans are a valuable protein source in

animal feed/aquafeed, especially when the

beans are dehulled

➢ Dehulling increases the feeding value of the

beans, but the cost of dehulling low make the

additional processing economically viable.

Cefetra has the backward integration and

capabilities to respond to these new market

developments. As a result, Cefetra was able to offer

its customers the best possible solution.

➢ Further developing Cefetra’s own origination of

faba beans:

✓ Secure/increase supply of faba beans

✓ Originate beans with high protein content

(Poland, Lithuania)

✓ Offering a transparent supply chain

✓ Possibility for organic, other products dehulling,

further processing concentrate

➢ Building a processing line at a storage location for

dehulling:

✓ Creating maximum logistical efficiency with

dehulling integrated at the site.

✓ Use the network to find local outlet of side

stream i.e. hulls.

Demand Solution


Our Entrepreneurial Spirit – Example: Faba Beans


Acquisition Tracomex group in 2017

Demand Solution

Value offer

➢ Entrepreneurial approach towards new products

➢ Speedy implementation and testing at own risk in the

benefit of the customer

➢ Fair and transparent price conditions for customers

and Tracomex enhances long partnerships

➢ No mistakes in the execution as a basis for

customer success

• Non commodity waste products

and specialty crops

• High nutrient levels with

competitive pricing

• Excellent logistics, especially for

food producers, with a no error

mentality

• Strong customer partnership with

fair conditions

• Reliability on product safety and

classification

Specific customer demand


Our Entrepreneurial Spirit – Example: Tracomex


Innovation is not only developed inside the

company – new trends and ideas are picked up

by young companies, working on new

products, services and even disruptive

business models

The Agro Innovation Lab was founded in 2016 as a

joint innovation platform of BayWa & RWA: A trend

scout, accelerator, networker, mentor, …

– unified in our goal to play an active part in shaping

the future of agriculture through innovation.

Demand Solution

BayWa’s approach

▪ Embrace innovation – also disruptive ones –

to ensure we can incorporate value adding

ideas also to be accessible for for customers

▪ Support innovation, also in early stages when

business models are still under development.

The benefit of an idea can also be, just to

create another one.

▪ Grow innovation – by keeping it focused,

providing the right development framework and

ensure vice-versa benefit from experience.

• The first European Corporate AgTech Accelerator!

with each StartUp participating in the program, we

design a joint innovation project over the course of

five months, including a monthly intensive

Acceleration Week.

• Our manifold activities conjoin AgTech with

conventional agricultural technology, merging the

expertise of traditional agriculture with the

possibilities of digitization, thus building a network

of research, development and entrepreneurship.


Our Entrepreneurial Spirit – Example: Innovation


New technology but also new requirements

make more intense farm management possible

and necessary. Enabling farmers to do so is not

only developing agricultural advisory to the next

level – it also supports efficient production.

Development of a digital farm management services

– based on the acquisition of existing expertise:

Demand Solution

BayWa’s approach

Smart Farming Enabler for farmers – for solutions

within the full farming value chain, e.g. precise

fertilization, seeding and water management

▪ Farm-Management–Information Systems

und Digital Advisory Services

▪ Technological Enabler by offering Sensor

technology, drones and smart farming advisory

▪ Expansion of knowledge base by data

access, understanding and modeling

▪ Analog Services (e.g. soil analysis)

Next Farming products:

Enabling smart farming for

every size of farms and

creating value for every farmer

through digitalization of

production processes.


Our Entrepreneurial Spirit – Example: Digital Farming


Our Responsibility


BayWa Stiftung

African farm support

Fair Trade

Social responsibility

Sustainability

Health

Nutritional quality

Leading in

non-GMO

Quality management

Certified

responsible soy

Innovation feed &

food safety

Sustainability reporting

Leading supplier

sustainable feed ingredients

CO2-reduction &

Carbon footprint

Leading in Organic

feed industry supply

Employee development

Integrity

Diversity & inclusion

BayWa Agri Supply &Trade One Team One Culture · 2020-01-16 · New business growth: Drive customer...

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