Cooperative Opportunities in a Global Economy

Global Involvement … Lessons Learned

Cooperative Opportunities in a Global Economy

Global Involvement … Lessons Learned

John E. GhertyImmediate Past President & CEOLand O’Lakes, Inc.

8th Annual Farmer Cooperatives Conference

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Importance of this ConferenceImportance of this Conference

Recognizes global Recognizes global nature of 21nature of 21stst century century economy/marketplaceeconomy/marketplace

Reflects our Reflects our responsibility to be responsibility to be “good global citizens”“good global citizens”

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Global ViewGlobal View

In today’s complex and In today’s complex and changing economic changing economic environment, being environment, being financially successful and financially successful and adding value for members adding value for members long term, will … long term, will … for many for many of our cooperativesof our cooperatives … … require that we be prepared require that we be prepared to pursue international to pursue international businessbusiness

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Global ViewGlobal View

The question is not The question is not

whether we will whether we will

have to operate in have to operate in

in a more unified in a more unified

global market … global market …

but rather when but rather when

and how.and how.

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TopicsTopics

The ways international business can The ways international business can

add value for cooperatives and add value for cooperatives and

membersmembers

How you build board and membership How you build board and membership

support for international effortssupport for international efforts

How Land O’Lakes has approached How Land O’Lakes has approached

these issuesthese issues

6Adding Value through International ActivityAdding Value through International Activity

HistoricHistoric cooperative focus … cooperative focus … commoditiescommodities Today access depends on being least-costToday access depends on being least-cost

on a global basison a global basis

FutureFuture opportunity will be in opportunity will be in finding ways to add value to finding ways to add value to commoditiescommodities Differentiate member productionDifferentiate member production

7Adding Value through International ActivityAdding Value through International Activity

Differentiating member productionDifferentiating member production Further processingFurther processing QualityQuality Dependability of supplyDependability of supply TraceabilityTraceability

Exporting new technologyExporting new technology Meeting global needs of domestic Meeting global needs of domestic

customerscustomers

8Adding Value through International ActivityAdding Value through International Activity

Helping generate the size and Helping generate the size and scale necessary to compete and scale necessary to compete and winwin Critical mass and economies of scale Critical mass and economies of scale

key attributes of successful companieskey attributes of successful companies

9Communicating with Board and MembersCommunicating with Board and Members

CEO develops Vision for CEO develops Vision for

international involvementinternational involvement Develop and implement detailed Develop and implement detailed

communication plancommunication plan Develop and implement specific Develop and implement specific

projects and strategiesprojects and strategies

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CEO’s RoleCEO’s Role

Be point person with the BoardBe point person with the Board Critical “point of sale”Critical “point of sale” Demands compelling message(sDemands compelling message(s))

• Based on facts and dataBased on facts and data

• Use outside resourcesUse outside resources

Also need to build broader Also need to build broader membership supportmembership support

11Ten Things to Think Aboutin Communicating Strategy Ten Things to Think Aboutin Communicating Strategy

1.1. The CEO or leader must be fully The CEO or leader must be fully committed to the Visioncommitted to the Vision

2.2. You need to craft compelling You need to craft compelling messages around the Visionmessages around the Vision

3.3. Take your messages to decision-Take your messages to decision-makers firstmakers first

4.4. Send written material ahead of any Send written material ahead of any meetingsmeetings

5.5. Have a communications plan with Have a communications plan with tasks, timing and accountabilitiestasks, timing and accountabilities

12Ten Things to Think Aboutin Communicating Strategy Ten Things to Think Aboutin Communicating Strategy

6.6. Once you go beyond the board, be Once you go beyond the board, be tactical about whom you tactical about whom you communicate with firstcommunicate with first

7.7. Use information meetings in the Use information meetings in the countrycountry

8.8. Keep other stakeholders informedKeep other stakeholders informed9.9. Be a good listener and incorporate Be a good listener and incorporate

feedbackfeedback10.10. Over-resource your communication Over-resource your communication

effortsefforts

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The Land O’Lakes ExperienceThe Land O’Lakes Experience

Early 1980s Land O’Lakes:Early 1980s Land O’Lakes: UMW regional cooperative … little UMW regional cooperative … little

international visioninternational vision

CEO Ralph Hofstad started the CEO Ralph Hofstad started the processprocess Had a vision for Land O’Lakes growth Had a vision for Land O’Lakes growth

… domestically and internationally… domestically and internationally

14Land O’Lakes Global InvolvementLand O’Lakes Global Involvement

Land O’Lakes is proud to be a Land O’Lakes is proud to be a

leaderleader in the delivery of in the delivery of

international humanitarian international humanitarian

and technical assistance.and technical assistance.

15Land O’Lakes Global InvolvementLand O’Lakes Global Involvement

Bangladesh

Russia/Siberia

Armenia TurkmenistanAzerbaijan UkraineGeorgia Uzbekistan

AngolaEthiopiaKenyaMalawi

SudanTanzaniaUgandaZambia

AlbaniaBosnia Macedonia

Philippines

Pakistan

MaliMozambiqueNigeriaSouth Africa

ColombiaHonduras

Afghanistan

16Communicating Our International VisionCommunicating Our International Vision

Key objectives:Key objectives: Reach out and help farmers in less Reach out and help farmers in less

developed countriesdeveloped countries Use international development projects to Use international development projects to

develop relationships that could lead to develop relationships that could lead to commercial opportunitycommercial opportunity

Get board, members and employees Get board, members and employees involvedinvolved

- Make them advocatesMake them advocates

17Communicating OurInternational VisionCommunicating OurInternational Vision

Initial challenges … skepticism

Global development assistance would create new competitors

Doing business in global markets would detract from our ability to succeed at home

18Communicating OurInternational VisionCommunicating OurInternational Vision

Key messages:Key messages: International development was a reflection International development was a reflection

of who we are as an organizationof who we are as an organization Our involvement in international Our involvement in international

development had the potential to create development had the potential to create positive relationships and open the door to positive relationships and open the door to commercial opportunitiescommercial opportunities

Land O’Lakes faced a very real need to Land O’Lakes faced a very real need to expand its horizonsexpand its horizons

19Communicating Our International VisionCommunicating Our International Vision

Enlightened Self InterestEnlightened Self Interest

20Communicating OurInternational VisionCommunicating OurInternational Vision

Took these messages to:Took these messages to: BoardBoard MembershipMembership

Annual meetingAnnual meeting Country meetingsCountry meetings Member publicationsMember publications

21Communicating OurInternational VisionCommunicating OurInternational Vision

Spreading the Spreading the message:message: Getting directors, Getting directors,

members, members,

employees and employees and

retirees retirees directlydirectly

involvedinvolved in international in international

development programsdevelopment programs

You learnby doing!

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Land O’Lakes TodayLand O’Lakes Today

Directors, members and Directors, members and employees:employees: Proud of our international development Proud of our international development

effortsefforts Understand importance of the ability to Understand importance of the ability to

think, plan and globallythink, plan and globally Recognize global activities create new Recognize global activities create new

opportunities, rather than foster new opportunities, rather than foster new competitorscompetitors

23Land O’Lakes International DevelopmentLand O’Lakes International Development

International Development Division International Development Division established in 1981established in 1981 Record of achievement:Record of achievement:

137 projects in 66 countries137 projects in 66 countries Training for 2,500 cooperatives and private Training for 2,500 cooperatives and private companiescompanies Training for more than 50,000 foreign Training for more than 50,000 foreign nationalsnationals

Global school nutrition programs have fed more than 1.5 million youngsters.

24Land O’Lakes International DevelopmentLand O’Lakes International Development

Goals:Goals: Provide meaningful assistanceProvide meaningful assistance Generate a positive image in current and Generate a positive image in current and

potential marketspotential markets Develop Land O’Lakes international Develop Land O’Lakes international

experience and expertiseexperience and expertise

25Land O’Lakes Global BusinessLand O’Lakes Global Business

First exported butter to Africa First exported butter to Africa

in 1925in 1925 Late 1980s … developed staff Late 1980s … developed staff

specifically dedicated to sales in specifically dedicated to sales in

Latin America and Far EastLatin America and Far East

26Land O’Lakes Global BusinessLand O’Lakes Global Business

Dairy FoodsDairy Foods 34 countries 34 countries

FeedFeed 39 countries39 countries

Seed (alfalfa)Seed (alfalfa) 5 countries5 countries

27Cooperatives and the Global FutureCooperatives and the Global Future

Cooperatives cannot afford to ignore Cooperatives cannot afford to ignore global opportunity or global global opportunity or global competitioncompetition

Cooperatives need to focus on core Cooperatives need to focus on core businesses and competenciesbusinesses and competencies

The most significant opportunities The most significant opportunities exist in the value-added sectorexist in the value-added sector

No one organization will do it alone … No one organization will do it alone … collaboration and cooperation will be collaboration and cooperation will be keykey