2001 Farmer Cooperatives
Conference
October 30, 2001
Meeting the Needs of Our Food Customers
Blue Diamond Growers
• How to Better Meet
Customer Needs
– Adapt & Change
– Reorganize
Reorganization Guiding Concepts
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Market Driven
Structure into Business Units
Strengthen Key Customer Relationships
Business Planning Driving Day-To-Day
Empowered Work Force
What is a Business Unit?
 Cross Functional Business Team
 Structured Around Market Segments
 Aligned with Production Cells
 Formulates Objectives & Strategies
 Accountable for Results
Business Unit Benefits
Clearer
Focus
Improved Linkage
Stronger Customer Relationships
Market Segment Profitability
Better Overall Business Performance
Business Units
Processed Ingredients
Commodity
Americas Industrial
Export Industrial
Consumer Foods
Processed Ingredient Customers
• Confectioners
• Cereal/Baking Manufacturers
Commodity Customers
• Marzipan & Paste Manufacturers
• Traders and Speculators
• Importers/Processors
Americas & Export Industrial
Customers
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Bakers/Bakery Companies
Nut Roasters/Salters
Repackers
Inshell Buyers
Ice Cream Manufacturers
Consumer Foods Customers
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Grocery Stores & Supermarkets
Drug & Discount Stores
Wholesale/Club/Cash & Carry
Food Service
Meeting Commodity Customer Needs
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Price Buyers
Margins Minimal
Buying Positions Speculative
Excessive Supply & Uncertainty
Meeting Industrial Customer Needs
• Quality, Service & Price
• Brand Loyalty
Meeting Processed Ingredients
Customer Needs
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Value Added Products
High Degree of Intimacy
Exacting Product Specifications
Matching Infrastructure
Mutually Drive Costs out of Processes
Meeting Consumer Foods
Customer Needs
• Higher Margins Market Segments
• Growth Requires Closer Integration
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Multiple product lines
Must deliver information plus products
Must tie technology together to lower costs
Proactive services
A Can a Week
That’s All We Ask