World Grain - August 2017 - 6

FROM THE EDITOR-IN-CHIEF

Challenges facing
grain industry

hen the top executive of one of
the world's largest grain-based
companies addresses a convention
of his industry's leaders, the expectation is
that he will express a degree of enthusiasm
about the business, regardless of the present situation. Juan Luciano, chairman and
chief executive of Archer Daniels Midland
Co. (ADM), speaking to the recent gathering
of the National Grain and Feed Association,
did not surprise in pointing to the promising future he sees for the global grain and
food business. Yet, in making that case, Mr.
Luciano said achieving the future he sees requires companies and executives to face up
to and win over certain challenges. As the
industry has already learned in listening to
and reading what this executive believes,
the direction he describes leaves no room
for missing the mark.
His approach is emphasized in the lead
positive he cited. Pointing out that 90% of
the global population lives in developing
nations, he said their life "has been getting
better in the last 20 years." During those two
decades, the share of population living in
poverty or experiencing chronic hunger has
been halved. The result is marked growth
numbers approaching or reaching middle
class, which obviously improves the quantity and quality of what they desire to eat.
Combining this with expanding world population means growing demand for grains as
the basic raw material of many foods.
5HDOL]LQJ WKH EHQH¿WV RI WKLV H[SDQsion requires a keenly alert industry fully
in tune with reacting to a series of challenges. Here he emphasized that trade issues will loom large in determining how
the grain industry moves.
"We must strike home the message that
trade in agricultural products is not a zerosum game, that trade is essential for feeding the world, for the health of the global
economy," he said, also voicing the belief
that "farmers must have the freedom to plant
what they want." Saying that agriculture has
run a trade surplus for America for nearly
50 years, Mr. Luciano emphasized that "few

things are as critical for us as healthy, robust
support for agricultural trade."
Here is the point where Mr. Luciano revealed that he had recently been at a White
House event attended by various executives.
What he heard made him "a little bit more
positive than others." He based this on President Trump saying his administration does
not oppose trade but wants a level playing
¿HOGWKDWUHÀHFWVIDLUWUDGH7KH$'0H[HFXtive noted he had traveled to both Mexico and
China this year, and this led him to conclude
"there is a lot of room for discussion, for collaboration and for understanding before we
step up the rhetoric." His view is built on a
multipolar world requiring the United States
and its businesses to face these realities.
Turning to America and other developed
countries, Mr. Luciano cited the challenge
created by shifting consumer preferences
and different expectations about health and
QXWULWLRQ RI VSHFL¿F IRRGV +H FLWHG H[DPples from ADM's experience and also related efforts to ensure traceability of products
as well as sustainability.
The fourth challenge discussed by Mr.
Luciano involved how the industry and its
member companies react to, as well as leveraging, the amazing technological changes
under way across the economy. Citing what
he called the "phenomenal pace" of change,
he said it is essential for the food industry to
HPEUDFH DQG ¿QG ZD\V RI OHYHUDJLQJ WKHVH
new developments. That challenge is just the
sort of issue that Mr. Luciano embraced in
urging the industry not to resist, but to recognize what may be gained by taking advantage of this fast-changing world. Equating
advocacy of trade and agricultural policies
without restraints on farmers as well as embracing new technologies represents a heady
challenge. But Mr. Luciano made doing that
worthwhile when he commented, "Things
often are better than we seem to think they
are." Coming from someone who has seen
so much, his "better" offers great promise.
Morton I. Sosland
Editor-in-chief

Publisher
Dan Flavin
International Sales Manager Adam Ungashick
EDITORIAL STAFF
Editor-in-Chief
Editor
Executive Editor
Managing Editor
Associate Editor

Morton I. Sosland
Arvin Donley
Meyer Sosland
Eric Schroeder
Susan Reidy

Digital Media Associate Editor Holly Demaree
European Correspondent
Chris Lyddon
China Consultant
Fengcheng Wang
Graphic Designer
Brian Peterman
PUBLISHING STAFF
Chairman and CEO
Charles Sosland
President
L. Joshua Sosland
Chief Financial Officer
Staci Greco
Director of Operations
Meyer Sosland
Audience
Development Director
Michael Barbee
Design Services Manager Sadowna Conarroe
Design Services
Assistant Manager
Ryan Alcantara
Digital Advertising Manager
Carrie Fluegge
Director of Digital Media
Jon Hall
Advertising Manager
Nora Wages
Advertising Assistant Manager
Erica Reyes
Preflight and Adobe Support Specialist Marj Potts
Audience Development Specialist Molly Brown
Promotions Manager
Jim White
WORLD GRAIN (ISSN 0745-8991) Volume 35, issue 8,

is published monthly by Sosland Publishing Co.,
4801 Main Street, Suite 650, Kansas City, MO 64112 U.S.
Periodicals postage paid at Kansas City, MO 64108 U.S.
and additional mailing offices. Canada Post International
Publications Mail (Canada Distribution) Sales Agreement
Number 40612608. Send returns (Canada) to Pitney Bowes
International, P.O. Box 25542, London, ON, N6C 6B2. Printed
in the USA.
POSTMASTER: Send address changes to WORLD GRAIN,
PO Box 3001, Northbrook IL 60065-9743. ©Sosland
Publishing Company. All rights reserved. Reproduction of the
whole or any part of the contents without written permission
is prohibited. WORLD GRAIN assumes no responsibility for
the validity of claims in items reported. Sosland Publishing
Company is a division of Sosland Companies. Inc.
Editorial and advertising inquiries should be directed to our
world headquarters at 4801 Main St., Suite 650,
Kansas City, Missouri 64112 U.S. Tel: 1-816-756-1000,
Fax: 1-816-756-0494 or E-mail worldgrain@sosland.com.
Requests for reprints of articles should be sent to
reprints@sosland.com or call 1-816-756-1000.

August 2017 / World Grain / www.World-Grain.com

http://www.World-Grain.com

World Grain - August 2017

Table of Contents for the Digital Edition of World Grain - August 2017