Partnership Perils:
A tale of two cities
Troy Upah
Ag Partners, LLC
Albert City, IA
7th Annual Farmer
Cooperatives Conference
November 1, 2004
A Unique Joint Venture
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September 1, 1997
2 Owners – 50% Private / 50% Co-op
13 Facilities in NW Iowa – 4 Rail
Lines
Grain, Agronomy, and Feed
165 Employees
$150 Myn Business
LLC Structure
Albert City Elevator, An Iowa Co-op
 Started
1905
 900 Farmer Members
 9 Member Board
 9 Locations
 100 Employees
 Financial Strength
Cargill, Inc.
 Started
1865
 101,000 Employees – 59 Countries
 Cargill Grain Division
– Now Cargill Ag Producer Services
 Northwest
Iowa
– 4 Locations
– 65 Employees
Accomplishments 1997 - 2004
Completed 03/98 – 16,000 Tons
Accomplishments 1997 - 2004
New Culture
 Improved Efficiencies
 Company Investments
 Positive Results
 “Evergreen”
Agreement

1 of 5 Bulk Seed Sites
Partnering with
Investor Firms
The Value of An InvestorOwned Partner
The Ag Partners’
Experience
Operating Independently
Guidelines:
 Safety Requirements
 Spending Limits
 Annual Budget
– Profits and Capital Spending
 Strategic
Planning
 Quarterly Board Meetings
A Stronger Board of Directors
3 Alceco - 3 Cargill
Years of Experience
 Ag Industry Knowledge
 New Challenges
 Outside Perspective
 Vision
 Autonomy

Phosphate Mine Tour
Shared Priorities
 Safety
 Communities
- Image
 Earnings
 Knowledge
Gain
 Long-Term Vision
 Strong Relationship
Decision-Making Process

Earnings Impact
– Feasibility Studies
Business Centered
 Sensitive to Local Concerns

Access to Resources
Capital
 Risk Management Tools – Grain
 Feed Systems
 Benchmarking

Market Support
 Rate
Negotiations
 Equipment Vendors
 Suppliers
– Feed Ingredients
– Agronomy Products
 Market
Information
Community Support
Student Scholarships
 Fire Departments
 Libraries
 Hospitals
 Schools

Improved Market Access

Fertilizer Procurement
– Phosphates
– Nitrogen
– Specialty Products
Grain Markets
 Feed Ingredients

Capturing Efficiencies
 Sharing
Equipment
– Conveyors
– Terragators
 Sharing
People
– Applicators, tender drivers, etc.
 Sharing
Ideas
– Market Approach
Results
 Financial
Success
 Growth
 Safety
Results
 Employee Satisfaction
Challenges
Initial Customer Concerns
 Market Perceptions
 Supplier Misconceptions

Alta, IA
An Albert City Elevator
Perspective
“There is no doubt that our
partnership with Cargill has
created increased value for our
members and our cooperative.”
Jim Franzmeier, Board Chairman
Thank You!