Transcript Slide 1

Producers Cooperative Oil Mill
And
Plains Oilseed Products Coop
Producers Cooperative Oil Mill (PCOM)
Organized in June of 1944
-14 Coop Gins
-3 Regional Coops
-Original Investment $245,000
-Current Member Equity $15 million
Today; owned by Cotton Producers through their
Members Gins
-22 Oklahoma Gins
-10 Texas Gins
-2 Kansas Gins
-8 Arkansas Gins
-2 Missouri Gins
-14 Tennessee Gins
Producers Cooperative Oil Mill (PCOM)
Oklahoma City, 2007
Producers Cooperative Oil Mill
Over 64 years of progress
through producer ownership
Products
A ton of cottonseed will normally produce
-320 lbs of oil
-920 lbs of protein (meal or pellets)
-550 lbs of hulls
-160 lbs of linters
-50 lb loss
Of the four primary products produced, oil is the
most valuable
PCOM processes & sells PBSY oil, 41% protein
meal & pellets, cottonseed hulls, linters, and
whole cottonseed out of our Mid-South locations.
The Future Of Oil Seed Processing
Products
A ton of Canola Seed will normally produce
-850 lbs of oil
-1100 lbs of protein (meal or pellets)
-50 lb loss
Of the two primary products produced, oil is the
most valuable
PCOM will produce Crude Degummed Canola
Oil or (CDC)
Nu Sun Sunflowers IN Oklahoma
Products
A ton of Sunflower Seed will normally produce
-750 - 820 lbs of oil
- 800 - 1130 lbs of protein (meal or pellets)
- 0 – 400 Sunflower Hulls
-50 lb loss
Of the primary products produced, oil is the
most valuable
PCOM will produce Super Crude Degummed
Sunflower Oil or (SCDC), 28-35% protein meal &
pellets.
Goal and Objective of
Producers Cooperative Oil Mill
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To maintain a company with a strong balance
sheet and to be pro-active in our long term
decisions not reactive to the environment that
we are exposed to !
A company not afraid to CHANGE !
Make decisions based on knowledge and the
best professional information available
(Informa Economics)
Adapting To Change
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Purchased Equipment, alternative crops
Canola,Sunflowers,Peanuts,Crambe,Bean
Qualified personal for chemical extraction
Experienced sales department
Established protein markets
Established oil markets
Contracts and delivery points established
PCOM has purchased a new location for
expansion.
Plains Oilseed Products (POP)
 Is a Cooperative formed through Producer Membership
 $100 Membership Fee
 Allows Producers the ability to receive rebates through POP from PCOM
 Controlled by an elected board of directors
 FYE June 30
What Producers’ Needed.
- The need for a rotational crop
- Control weeds & insects
- Improve quality of wheat
- In need of a market for oilseed crops
Where does PCOM and POP
fit in? (Continued)
- Delivery Points
- Added value to producers crop
- Rural Development
Marketing Contract
(Act of God)
- Acres (Canola)
- Acres (Sunflowers)
- Delivery Points
- Price Per Pound
- Grade & Oil Content
Option to Price Later Contract:
1. Producer can contract pounds and price the oilseed at a later date and time agreed upon by both PCOM and the producer.
2. Upon signing of contract and delivery of commodity, then title of the commodity shall pass to the buyer.
3. PCOM agrees to allow the producer to price the commodity at a later date set forth by the terms on this contract.
4. Pricing of the commodity must be done during marketing hours only and agreed upon by both parties.
5. Producer must price the commodity NO LATER than 12:00 noon CST February 1 of that years commodity harvest.
6. Buyer will price the contract February 1 between 12:00 noon and 1:00 pm CST of the commodity harvested year.
7. Seller states that the commodity he/she is selling is free and clear of all liens and security interests.
8. All settlements will be made within ten days after contract is priced, and all discounts and premiums are applied.
Marketing Contract
2008 Nu-Sun Sunflowers
$.146 per lb
Marketing Contract
2009 Nu-Sun Sunflowers
$.132 lbs
2009 Canola
$.134 / lb. (6.70BU. )
2009 Wheat
$4.34/bushel
Exhibit 1: US Planted Acreage (thousand acres)
Exhibit 1: US Planted Acerage (thousand acres)
2002
2003
Corn, All
78,894
78,603
Sorghum, All
9,589
9,420
Barley
5,008
5,348
Oats
4,995
4,597
All Wheat
60,318
62,141
Soybeans
73,963
73,404
Peanuts
1,353
1,344
Sunflowers
2,581
2,344
Rapeseed/Canola
1,460
1,082
Flaxseed
784
595
Cotton, All
13,958
13,480
Soubeans Double-Cropped 4,179
4,138
Crop Total
319,847 318,855
Consdervation Reserve
33,890
34,087
Grand Total
353,737 352,942
2004
80,929
7,486
4,527
4,085
59,674
75,208
1,430
1,873
865
523
13,659
4,481
315,579
34,860
350,439
2005
81,759
6,454
3,875
4,246
57,229
72,032
4,657
2,709
1,159
983
14,195
2,811
313,260
34,861
348,121
2006
78,327
6,522
3,452
4,168
57,344
75,522
1,243
1,950
1,044
813
15,274
3,933
310,122
35,984
346,106
Highlights
CRP acres will slip to around 30 million.
2007 will represent peak corn and trough soybean plantings.
Wheat seedlings will slide lower.
Cotton acres will decline materially.
Canola and sunflower will both experience substantial growth.
2007
93,600
7,718
4,020
3,760
60,433
63,631
1,230
2,068
1,183
354
10,830
5,046
312,396
36,767
349,163
2011
91,000
8,480
3,600
3,540
56,500
76,000
1,253
2,450
1,390
550
8,500
4,500
317,438
29,760
347,198
2016
89,000
8,300
3,500
3,290
56,000
78,500
1,153
2,950
1,640
550
6,250
4,500
314,933
30,500
345,433
Exhibit 5: US Soybean Complex Fundamentals
Planted Area (mil. Acres)
Harvested Area
Harvested Yield (bu/acre)
2002
74.0
72.5
38.0
2003
73.4
72.5
33.9
2004
75.2
74.0
42.2
2005
72.0
71.3
43.0
2006
75.5
74.6
42.7
2007
63.6
62.8
41.1
2011
76.0
75.0
46.1
2016
78.5
77.5
53.4
Beginning Stocks (mil bu)
Production
Imports
Total Supply
208
2,756
4
2,969
178
2,454
6
2,638
112
3,124
6
3,242
256
3,063
3
3,322
449
3,188
9
3,647
573
2,585
10
3,168
Crush
Food/Seed/Resitual
Total Domestic Disappearance
1,615
132
1,747
1,530
109
1,639
1,696
187
1,883
1,739
187
1,926
1,806
150
1,956
1,845
154
1,999
361
3,460
10
3,831
65
1,970
206
2,176
509
4,140
10
4,659
15
2,085
246
2,331
Exports
Total Disappearance
1,044
2,791
887
2,526
1,103
2,986
947
2,873
1,118
3,074
1,060
3,059
1,225
3,401
1,790
4,121
178
6%
112
4%
256
9%
449
16%
573
19%
109
4%
430
13%
537
13%
Ending Stocks
ES: Use Ratio
Futures Price (per bu)
Farm Price (per bu)
Loan Level
$
$
$
HI-PRO Meal, Decatur (per ton)
Crude Oil, Decatur (per lb)
Crush Margin vs. Futures (per bu)
SBO Pct of Product Value
5.79
5.53
5.00
$182
$0.221
$0.63
37.8%
$
$
$
8.06
7.34
5.00
$256
$0.300
$0.86
36.9%
$
$
$
5.95
5.74
5.00
$183
$0.230
$0.61
38.6%
$
$
$
5.82
5.66
5.00
$174
$0.234
$0.59
40.2%
$
$
$
7.27
6.43
5.00
$205
$0.310
$0.66
43.0%
$
$
$
12.35
10.60
5.00
$325
$0.520
$0.52
44.4%
$
$
$
10.71
10.11
5.00
$310
$0.415
$0.65
40.0%
Highlights
The US acreage matrix allows soybean plantings to move twoard the high 70 million acre level.
Soybean yields benefit from technology introduced and approach 55 bushels per acre.
Crush increases 20-25 million bushels annually as US product needs grow.
Exportable supplies grow as production expansion exceeds crushing activity. Exports approach 1.8
billion bushels by 2016.
$
$
10.39
9.79
$304
$0.395
$0.65
39.5%
Exhibit 3: US Wheat Fundamentals
Planted Area (mil. Acres)
Harvested Area
Harvested Yield (bu/acre)
2002
60.3
45.8
35
2003
62.1
53.1
44.2
2004
59.7
50
43.2
2005
57.2
50.1
42
2006
57.3
46.8
38.7
2007
60.4
51
40.5
2011
56.5
48.4
45.4
2016
56
47.9
46.5
Beginning Stocks (mil. bu)
Production
Imports
Total Supply
777
1,606
77
2,460
491
2,345
68
2,904
546
2,158
68
2,775
540
2,105
81
2,726
571
1,812
122
2,505
456
2,067
91
2,614
516
2,200
105
2,821
501
2,230
105
2,836
Feed Use/Residual
Food/Milling and Seed
Total Domestic Disappearance
Grain Exports
Total Disappearance
137
998
1,135
834
1,969
228
995
1,223
1,135
2,358
219
985
1,204
1,028
2,232
183
994
1,177
978
2,155
143
1,017
1,160
889
2,049
148
1,050
1,198
1,203
2,401
250
1,080
1,330
975
2,305
225
1,130
1,355
950
2,305
Ending Stocks
ES: Use Ratio
491
25%
KC, HRW, Ordinary Protein
Farm Price (per bu)
Loan Level
Shaded area represents Informa
$4.22
$3.56
$2.80
forecast
546
23%
$4.03
$3.40
$2.80
540
24%
$3.99
$3.40
$2.75
571
26%
$4.45
$3.42
$2.75
456
22%
$5.31
$4.26
$2.75
213
9%
$8.40
$7.30
$2.75
Highlights
Food and export volumes experience little growth.
Wheat yields trend higher, registering annual increases of or the orderof 0.5%
annually.
Seeded area slips lower as even modest yield increases satisfy anticipated
usage volume.
516
22%
$6.11
$5.04
$2.75
531
23%
$6.00
$4.93
$2.75
3/7/2008
Decisions to be Made!!!!!
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If I am going to plant Oilseed crops what do I
need too do to be successful !!!!!
Remember Crop Rotation is Important !!!
Ask Questions.
Be committed
Fertilize-Plant correctly
Apply pest and weed control timely
Harvest by best method
Market crop throughout year with AOG
contract with PCOM and POP.
Questions!
Thank You