World Grain - August 2014 - (Page 30)

FEATURE: DAWN OF A NEW ERA as our customers have changed we recognize that we have to change as well, and we just feel that Ardent Mills will be much better positioned to serve a changing customer base, changing consumer trends and tastes, and changing opportunities that are out there." For customers large and small, the two-score locations where Ardent Mills operates may be able to offer service much different from what even the largest U.S. milling companies have offered in the past, Dye said. "An example might be in the supply chain where we could dedicate milling capacity to a specific customer for a specific flour that meets their specifications," Dye said. "The consistency of that in backing up supply and providing support for such an approach is something we'll be able to do much more effectively with the broader network of 40 mills than with 20 or 21." The larger number also may offer customers confidence about the dependability of their supply chain, Stoufer added. "I think one thing the winter storms taught us was the importance of redundancy and contingency planning," he said. "That is another strong area where Ardent Mills will really be able to provide comfort to the customer - that when they buy a product from us and order the different flours we make, they will arrive on time and when the customer needs it." Dye identified risk management as an arena in which all the owners of the joint venture would be able to provide customer benefits. "Ardent Mills will help our customers more effectively manage price risk as well as supply chain risk that Bill talked about in terms of transportation disruptions and some of the other factors around that," he said. "That's an area where we think our focused efforts will really be valuable to the customer as evidenced by the response to the Purchasing Seminar and the growth of that event. That's a really important area for our customers and for the baking industry, and we're going to be positioned to help our customers even more as Ardent Mills on risk management." Stoufer said about 200 Ardent Mills associates will office at the company's Denver headquarters. While some of those employees will relocate there as early as this summer, others will transition to the Mile High City over a period of 12 to 18 months, he said. Overall, ConAgra Mills, just before Ardent Mills began operating, had 1,000 employees, including 100 at the com- pany's Omaha headquarters. Horizon Milling had 1,400 employees, including 140 in the company's Minneapolis headquarters. Headquarters' employees who do not join Ardent Mills or take positions with ConAgra Foods or Cargill will transition from the company in the coming months. Offering further detail into what lies ahead, Stoufer said Ardent Mills will operate its own laboratory and research and development structure in Denver. "We will move it at an appropriate time when it's not new crop time, and we'll be very cognizant of timing of that transition," he said. "But we'll also tap into and utilize key learnings and opportunities from the parents. I think R&D is one area where we can leverage the ingredients of Cargill, the consumer insights of ConAgra and the origination capabilities of CHS to really deliver very unique solutions to potential R&D opportunities that exist." WHOLE GRAINS Whole grains have been a centerpiece of the ConAgra Mills business strategy in recent years and have been an area of focus for Horizon as well. Dye said whole wheat will remain important at Ardent Mills. "We see a lot of growth and op- Ardent Mills partners, executives, bring deep roots in flour milling While Ardent Mills is the newest flour milling company in the United States, the joint venture's partners and top executives bring a rich heritage and extensive experience to the new company. Cargill, CHS and ConAgra Foods, the companies whose milling assets were combined to form Ardent Mills, have histories in flour milling dating back 42 years, 74 years and 95 years, respectively. The "baby" in the group, Cargill was established in 1865 but entered flour milling more than 100 years later - in 1972 with the acquisition of Burrus Mills. Cargill expanded rapidly in milling during the generation that followed to become one of the largest milling companies in the United States. CHS's roots in milling date to 1940 when Farmers Union Grain Terminal Association, a farmer-owned cooperative not even 10 years old, acquired a flour mill in Rush City, Minnesota, U.S. ConAgra is the only company of the three that began as a flour milling company. Nebraska Consolidated Mills Co. was established in 1919 with the combination of four flour mills in east central Nebraska. 30 The top two executives at Ardent Mills bring a combined history of 56 years of experience with Cargill and ConAgra Foods. Dan Dye, president, is a graduate of Bethel University who joined Cargill in 1981 and held numerous positions in the company's grain business in the years that followed. He was named vice-president of the North American grain business in 1995 and later spent 10 years as president of Cargill AgHorizons, U.S., the company's grain handling and retail crop input business. In 2009, Dye was promoted to president of Horizon Milling. Established in 2001, Horizon was a joint venture of Cargill and CHS. Bill Stoufer, chief operating officer and chief integration officer, previously spent his entire career at ConAgra Mills. He started in 1991 as a new graduate of Iowa State University. After five years working in the transportation and logistics area of ConAgra's milling business, he spent nearly 10 in sales and sales management roles. Beginning in 2006, Stoufer was vice-president of supply chain, a position he held until he was promoted to president of ConAgra Mills in 2010. August 2014 / World Grain / www.World-Grain.com http://www.World-Grain.com

Table of Contents for the Digital Edition of World Grain - August 2014

World Grain - August 2014
Table of Contents
From the Editor-in-chief - Fundamentals drive wheat prices
Calendar of Events
Latin American milling conferences
News Review - Interflour to build flour mill in Philippine free-trade zone
San Miguel to double flour milling capacity
ADM Milling completes expansion in Indiana
Bartlett building grain facility in Kansas
Cargill to build grain facility in Arkansas
Grupo Bimbo acquires Ecuadorean baker
Didion Milling names vice-president, business development
GrainCorp buys stake in Egyptian flour miller
Egypt purchases 5.1 million tonnes of wheat in 2013-14
United Grain plans bigger expansion at port
E.U. feed groups want decision on GMs
Toepfer renamed ADM Germany
E.U., EIB to work together on agriculture
Uzbekistan harvests record 8 million tonnes of grain
Ungashick joins World Grain sales team
E.U. sets import duty for first time in nearly four years
CHS earnings up 51% in third quarter
CHS makes management changes
Ardent Mills selects office location
Grain Market Review - Coarse grains
Country Focus - South Africa
Feature - Dawn of a New Era
Ardent Mills partners, executives, bring deep roots in flour milling
Regional Review - A Vital Grain Producer
Regional Review - Overflowing with Oilseeds
Regional Review - Export Challenges
Feature - Using Corn as a 'Lifeline'
LifeLine products
Technical Profile - Demanding the best
Feature - A Growing Issue
Feed Operations - Pellet Mills
Feature - Debugging your facility
Species spotted
Guest Commentary - Unforgettable: How flour saved Berlin
Feature - Olam's rice nucleus program
Rice Quarterly - UN sets acceptable levels of arsenic in rice
New rice mill planned for Arkansas
Italy wants ‘fairer’ rice deal
Thailand province developing jasmine rice
Thailand’s rice price shoots up on drought
Supplier News
Product Showcase
World Grain Archive
Ad Index/Fax Back Program

World Grain - August 2014

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