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Grain trade flows are changing and CHS is adapting to those shifts by strategically investing in grain origination and export facilities in the U.S. and around the globe. The goal is to be a competitive year-round grain supplier, preserving market access for American farmers and the cooperative system.
In this episode of the It Takes a Co-op™ podcast, Chris Pothen, senior vice president of international business with CHS, and Bryce Banfield, vice president of international sales with CHS, describe the push-pull of market forces and customer demand and the company’s international strategy.
Daily market presence
U.S. commodities are typically the most competitive on the world market for a few months after harvest, Pothen says. To remain a relevant grain supplier throughout the year, he says, the ability to buy and ship grain from different parts of the world is critical.
“Our customers are looking for commodities 365 days a year,” he explains. As a grain supplier, “You get an opportunity to do more business if you can be there for them with an offer each day out of all the relevant origins around the world. That allows you to do more business out of the U.S. as well.”
Grain buyers want suppliers that can provide high-quality, competitively priced commodities without supply interruptions, Banfield adds. CHS is improving its end-to-end supply chain by making infrastructure investments in key grain-producing regions to meet customer needs.
Farm gate connection
In 2024, CHS acquired several grain assets with shuttle-loader capabilities from Cargill. CHS is also building or expanding export terminals – often in cooperation with strategic partners – in the U.S., Brazil, Australia and the Black Sea region.
“Customers want reliability. When you have a customer that needs grain 365 days a year and they process thousands of tons of grain a week, the last thing they want to do is run out,” Banfield says. “Market intelligence has also become important, such as price spreads from different origins, logistics and quality of grain. You can only get that [data by] dealing with companies that have staff in different grain origination regions.”
The cooperative system is uniquely positioned to be supplier of choice for grain, Banfield continues. “The biggest advantage we have is we originate from the farm gate. It’s something that resonates with customers.”
U.S. farmers are the most productive in the world, Pothen adds, noting exports are vital to their success.
“The cooperative system is set up with the right assets to facilitate that. It really takes a co-op. CHS is the only cooperative that is moving grain around the world on behalf of farmers in the U.S.”
Each month on It Takes a Co-op, we introduce you to people working in agriculture and energy, inside and outside of CHS, whose ideas and insights will help you, and your cooperative, succeed.
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