Producers Cooperative Oil Mill

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Producers Cooperative Oil Mill
And Plains Oilseed Products Coop

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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

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Producers Cooperative Oil Mill (PCOM)
Oklahoma City, 2007
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Producers Cooperative Oil Mill
Over 64 years of progress
through producer ownership
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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.

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The Future Of Oil Seed Processing
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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)

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Nu Sun Sunflowers IN Oklahoma
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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.

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Goal and Objective of Producers
Cooperative Oil Mill

• To maintain a company with a strong balance sheet
  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)

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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.

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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

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What Producers Needed.
- The need for a rotational crop- Control weeds
insects- Improve quality of wheat- In need of
a market for oilseed crops
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Where does PCOM and POP fit in? (Continued)
- Delivery Points- Added value to producers
crop- Rural Development
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Marketing Contract (Act of God)

• Acres (Canola)- Acres (Sunflowers)- Delivery
  Points- Price Per Pound- Grade Oil Content

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Option to Price Later Contract
1. Producer can contract pounds and price the oilseed at a later date and time agreed upon by both PCOM and the producer.
2. Upon signing of contract and delivery of commodity, then title of the commodity shall pass to the buyer.
3. PCOM agrees to allow the producer to price the commodity at a later date set forth by the terms on this contract.
4. Pricing of the commodity must be done during marketing hours only and agreed upon by both parties.
5. Producer must price the commodity NO LATER than 1200 noon CST February 1 of that years commodity harvest.
6. Buyer will price the contract February 1 between 1200 noon and 100 pm CST of the commodity harvested year.
7. Seller states that the commodity he/she is selling is free and clear of all liens and security interests.
8. All settlements will be made within ten days after contract is priced, and all discounts and premiums are applied.
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2008 Nu-Sun Sunflowers .146 per lb
Marketing Contract
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2009 Nu-Sun Sunflowers .132 lbs 2009
Canola .134 / lb. (6.70BU. ) 2009
Wheat 4.34/bushel
Marketing Contract
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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.

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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.

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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.

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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.

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Questions!
Thank You