Managing Supply and Influencing Acreage Presented by Julia Cissel

1
Managing Supply and Influencing
AcreagePresented by Julia Cissel
Potato Outlook Summit, 12/7/2006
2
Topics for Discussion

• Overview
• Membership
• Trends
• Supply Management

3
Overview

• A federated, grower cooperative
• Work with state and regional member coops
• Grower owned - grower governed
• One member - one vote
• Industry leaders
• Focus on supply management
• Small staff CEO, COO, PR, Analyst, AA
• National office located in Salt Lake City

4
Membership
Member Coops
Prospective
5
Supply Trends
Growers are very good at growing potatoes.
Average annual yield increases by approx. 3.7
cwt/acre.
6
In-Home potato consumption has declined over the
past decade
Annual In-Home Potato Servings Per Capita
Source The NPD Group's National Eating Trends
service
Years Ending November
7
National Shipping Trends
(Million CWT)
National Shipments are in a steep decline!
Reported by AMS
8
Why Supply Management?

• Match supply to demand
• Create order and stability
• Increase growers economic potential
• Take advantage of cooperative principles provided
  as part of Capper-Volstead Act of 1922
• Gather and share accurate and timely data for
  quality business decisions

9
Matching Supply to Demand
Communication and Data

• Supply
• Acreage Management
• Stocks on Hand

• Return
• Costs
• Return Model

Demand Forecast

• Flow
• Pack Plan
• Demand Percentage

Communication and Data
Communication and Data
10
What others are saying
(UPGA) has produced a tremendous industry
response. This response makes all growers more
profitable than they were beforeDespite obvious
challenges, the best days are yet to come, and
supply management is here to stay. David
Fairbourn, Editor Potato Grower Magazine, Nov.
2006
11
Conclusion

• Supply Management depends on YOU!
• Manage your acres
• Insist on reasonable returns
• Engage and collaborate
• Convince non-members to follow they win too!
• DO THE RIGHT THING!

12
United Potato Growers of America123 N. Wright
Brothers Drive, Suite 110Salt Lake City, Utah
84116(801) 517-9000 www.unitedpotatousa.cominfo_at_
unitedpotatousa.com
13
85 of all respondents said they have seen an
increase in their profits since UPGA was formed.
Spudman magazine reader survey, May 2006
What others are saying
14
Key Relationships

• Customers
• Suppliers
• PMANA
• United Potato Growers of Canada
• USPB
• NPC
• State Potato Organizations

15

Strategy
Industry Structure
Supply Management
Demand Creation
Critical Mass
16
Statement by Chairman Wada
We have an obligation to our families,
communities, lenders, suppliers, and further
downstream to the consumers, retailers,
processors and food service industry to keep the
growers economics sound and stable. It all
starts on the farm. Albert Wada, Chairman,
United Potato Growers of America