International Supply Chain Platform: Phase 1
International Supply Chain Platform: Phase 1
International Supply Chain Platform: Phase 1
PLATFORM
PHASE 1
BRASIL ASIA
WORKING DRAFT
October 18, 2013
PREFACE
Simple concept
Sustainable and successful Supply Chain models have
been in existence for a long time. They existed prior to
the establishment of those internationally well known
companies that dominate this market space today.
What is complex are the different components that
make up the Supply Chain and the key is the proper
alignment of them and to bring them online in a
synchronous manner.
The ADM Way explains who we are as a Company and what we are here to do. It
describes what we want to be in the future and what we will do to achieve that aim.
It expresses what we value, what we focus on, and what is important to us.It
creates a common understanding for all colleagues and for those who interact with
us. At the heart of our Company is our vitalpurpose:To Serve Vital Needs
We fulfill this purpose by connecting the harvest to the home and transforming
crops into products that serve vital needs for food and energy. We know that our
purpose is noble, our work is essential, and we find meaning and satisfaction in
serving vital global needs.
Because the need for food and energy is both vital and growing, we must look
ahead, plan and grow.
At Olam, the end game for developing good corporate strategy is to make
our business more valuable by establishing clear pathways for sustainable
profitable growth that helps build fundamental intrinsic value.
DEMOGRAPHICS - SOYA
Top 10 Producers, Consumers, Exporters, and Importers 2011
Producers
Rank Country
Quantity
Consumers
Rank Country
Quantity
Million Tons
1
2
3
4
5
6
7
8
9
10
United States
Brazil
Argentina
China
India
Canada
Paraguay
Bolivia
Ukraine
Russia
83.2
65.5
41.0
13.5
11.0
4.2
4.0
2.2
2.2
1.7
Rest of World
7.5
Total
236.0
Exporters
Rank Country
Million Tons
1
2
3
4
5
6
7
8
9
10
China
USA
Brazil
Argentina
EU
India
Mexico
Japan
Indonesia
Russia
Rest of
World
Total
70.8
48.8
39.5
37.8
12.4
11.2
3.6
3.0
2.6
2.4
Quantity
Importers
Rank Country
Million Tons
1
2
3
4
5
6
7
8
9
10
USA
Brazil
Argentina
Paraguay
Canada
Uruguay
Ukraine
China
S Africa
Croatia
36.7
36.7
7.8
3.1
2.8
1.6
1.3
0.3
0.1
0.0
21.9
Rest of World
253.8
Total
Quantity
Million Tons
1
2
3
4
5
6
7
8
9
10
China
EU
Mexico
Japan
Taiwan
Indonesia
Thailand
Egypt
Vietnam
Turkey
57.5
11.0
3.4
2.7
2.3
2.0
1.9
1.6
1.2
1.1
0.2
Rest of World
5.5
90.5
Total
90.1
Source: Compiled by Earth Policy Institute from U.S. Department of Agriculture, Production, Supply and Distribution, electronic database, at
www.fas.usda.gov/psdonline, updated 10 August 2012.
DEMOGRAPHICS - SOYMEAL
Production
2009/10
Domestic Consumption
China
37,546
European Union
30,359
United States
27,795
Brazil
13,000
Thailand
3,613
Mexico
4,160
India
2,570
Japan
3,900
Indonesia
2,527
Vietnam
2,600
Iran
2,467
Russia
1,874
Korea South
2,420
Egypt
1,725
Canada
1,999
Other
22,175
Total
160,730
2010/11
43,382
30,952
27,489
13,750
3,775
4,340
2,900
3,844
2,784
2,975
2,550
2,181
2,336
1,980
1,987
23,305
170,530
2011/12
47,435
29,960
28,621
14,250
4,153
4,370
3,330
3,840
3,218
3,230
2,500
2,365
2,265
2,060
2,060
23,678
177,335
2012/13
49,823
27,668
26,399
14,473
4,350
4,225
3,702
3,585
3,430
3,450
2,700
2,532
2,260
2,127
1,940
24,494
177,158
Aug
2013/14
52,552
28,932
27,397
14,800
4,550
4,435
4,070
3,700
3,650
3,500
2,675
2,600
2,344
2,125
2,025
25,677
185,032
Sep
2013/14
52,945
28,932
27,170
14,800
4,550
4,435
4,070
3,700
3,650
3,650
2,675
2,600
2,344
2,125
2,025
25,697
185,368
4
DEMOGRAPHICS - SOYMEAL
Production
Imports
European
Union
Indonesia
Thailand
Vietnam
Iran
Japan
Philippines
Korea South
Mexico
Peru
Other
Total
2009/10
20,881
2,507
2,513
2,577
1,524
2,106
1,719
1,737
1,209
1,072
15,219
53,064
2010/11
21,815
3,069
2,318
2,545
1,742
2,208
1,972
1,658
1,500
1,059
16,654
56,540
2011/12
20,939
3,278
2,928
2,462
2,192
2,282
1,833
1,571
1,548
1,113
16,944
57,090
2012/13
18,100
3,500
3,000
2,580
2,600
2,000
1,925
1,625
1,250
1,150
16,678
54,408
Aug
2013/14
20,100
3,600
3,200
2,470
2,400
2,230
2,050
1,700
1,480
1,250
17,420
57,900
Sep
2013/14
20,100
3,600
3,200
2,600
2,400
2,230
2,050
1,700
1,480
1,250
17,520
58,130
TARGETED PARTICIPANTS
PARTICIPANT DATA
PARTICIPANT CONTRIBUTIONS
WHAT SPECIFIC
CONTRIBUTIONS INTO THE
VENTURE?
WHAT SPECIFIC
CONTRIBUTIONS INTO THE
VENTURE?
Supply Chain
Platform
Origination
Processing
Storage
Logistics
Finance
Market
Local Funding
EXECUTION
Given our current advantage, the most efficient manner to execute a Supply
Chain plan is to organize ourselves:
Japfa
Outright Contract
AWHK
Operating
Company
Brasil Banking
Platform
Brasil Registered
Company
Manages operations,
producers, logistics
and other aspect
local to Brasil.
Receives Service
Fees generated from
deals flowing thru
the Supply Chain
Platform.
Ownership : Grow,
Edgeware and
AWBAL
Brasil NEWCO
Cross Ownership
Co Ownership
Hong Kong
Co Ownership
Brasil
JV
Grupo
Itaquere
Platform connector to
local participants that will
be part of the
International Supply Chain
Platform.
HK Banking
Platform
HK Registered
Company
Manages Client
relations, Asian
marketing, logistics
and other aspect
local to Asia.
Receives Service
Fees generated from
deals flowing thru
the Supply Chain
Platform.
Ownership : Grow,
Edgeware and Brasil
NEWCO
Multi Export
10
ECONOMICS
To Be Determined based on identifying what each participant
will bring into the venture:
Supply Costs
Logistics/Storage
Shipping
Banking
Legal
Exit Price
Operational Costs
Hedging Costs
11