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Producers Cooperative Oil Mill And Plains Oilseed Products Coop. Producers Cooperative Oil Mill (PCOM). Organized in June of 1944 -14 Coop Gins -3 Regional Coops -Original Investment $245,000 -Current Member Equity $15 million
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Producers Cooperative Oil Mill And Plains Oilseed Products Coop
Producers Cooperative Oil Mill (PCOM) • Organized in June of 1944 • -14 Coop Gins • -3 Regional Coops • -Original Investment $245,000 • -Current Member Equity $15 million • Today; owned by Cotton Producers through their Members Gins • -22 Oklahoma Gins • -10 Texas Gins • -2 Kansas Gins • -8 Arkansas Gins • -2 Missouri Gins • -14 Tennessee Gins
Producers Cooperative Oil Mill (PCOM) Oklahoma City, 2007
Producers Cooperative Oil Mill Over 64 years of progress through producer ownership
Products • A ton of cottonseed will normally produce • -320 lbs of oil • -920 lbs of protein (meal or pellets) • -550 lbs of hulls • -160 lbs of linters • -50 lb loss • Of the four primary products produced, oil is the most valuable • PCOM processes & sells PBSY oil, 41% protein meal & pellets, cottonseed hulls, linters, and whole cottonseed out of our Mid-South locations.
Products • A ton of Canola Seed will normally produce • -850 lbs of oil • -1100 lbs of protein (meal or pellets) • -50 lb loss • Of the two primary products produced, oil is the most valuable • PCOM will produce Crude Degummed Canola Oil or (CDC)
Products • A ton of Sunflower Seed will normally produce • -750 - 820 lbs of oil • - 800 - 1130 lbs of protein (meal or pellets) • - 0 – 400 Sunflower Hulls • -50 lb loss • Of the primary products produced, oil is the most valuable • PCOM will produce Super Crude Degummed Sunflower Oil or (SCDC), 28-35% protein meal & pellets.
Goal and Objective of Producers Cooperative Oil Mill • To maintain a company with a strong balancesheet and to be pro-active in our long term decisions not reactive to the environment that we are exposed to ! • A company not afraid to CHANGE ! • Make decisions based on knowledge and the best professional information available (Informa Economics)
Adapting To Change • Purchased Equipment, alternative crops • Canola,Sunflowers,Peanuts,Crambe,Bean • Qualified personal for chemical extraction • Experienced sales department • Established protein markets • Established oil markets • Contracts and delivery points established • PCOM has purchased a new location for expansion.
Plains Oilseed Products (POP) • Is a Cooperative formed through Producer Membership • $100 Membership Fee • Allows Producers the ability to receive rebates through POP from PCOM • Controlled by an elected board of directors • FYE June 30
What Producers’ Needed. - The need for a rotational crop- Control weeds & insects- Improve quality of wheat- In need of a market for oilseed crops
Where does PCOM and POP fit in? (Continued) - Delivery Points- Added value to producers crop- Rural Development
Marketing Contract (Act of God) • Acres (Canola)- Acres (Sunflowers)- Delivery Points- Price Per Pound- Grade & Oil Content
2008 Nu-Sun Sunflowers $.146 per lb Marketing Contract
2009 Nu-Sun Sunflowers $.132 lbs 2009 Canola $.134 / lb. (6.70BU. ) 2009 Wheat $4.34/bushel Marketing Contract
Exhibit 1: US Planted Acreage (thousand acres) • Highlights • CRP acres will slip to around 30 million. • 2007 will represent peak corn and trough soybean plantings. • Wheat seedlings will slide lower. • Cotton acres will decline materially. • Canola and sunflower will both experience substantial growth.
Exhibit 5: US Soybean Complex Fundamentals • Highlights • The US acreage matrix allows soybean plantings to move twoard the high 70 million acre level. • Soybean yields benefit from technology introduced and approach 55 bushels per acre. • Crush increases 20-25 million bushels annually as US product needs grow. • Exportable supplies grow as production expansion exceeds crushing activity. Exports approach 1.8 billion bushels by 2016.
Exhibit 3: US Wheat Fundamentals • Highlights • Food and export volumes experience little growth. • Wheat yields trend higher, registering annual increases of or the orderof 0.5% annually. • Seeded area slips lower as even modest yield increases satisfy anticipated usage volume.
Decisions to be Made!!!!! • If I am going to plant Oilseed crops what do I need too do to be successful !!!!! • Remember Crop Rotation is Important !!! • Ask Questions. • Be committed • Fertilize-Plant correctly • Apply pest and weed control timely • Harvest by best method • Market crop throughout year with AOG contract with PCOM and POP.
Questions! Thank You