CUSTOMER SPOTLIGHT
CHS By Mark Thompson
CHS is based in the United States, with headquarters near St. Paul, Minnesota. Employees based there support the cooperative’s business operations in energy, agronomy, grain marketing, animal feed, food and food ingredients, along with business solutions including financial and risk management services. CHS also owns petroleum refineries, processing plants, grain terminals, crop protection and crop nutrients facilities and ag retail business units across the U.S. to provide its owners with a direct link, where they live and work, from planting to harvest to consumers.
Customer Base/Geographic Footprint: CHS sells to CHS retail locations, independently owned wholesale, and seed companies (corn/soybean) Expands across 25 states with strong success in the Dakotas, Minnesota, Iowa, Illinois, Washington, and Ohio Simply put, CHS sells the agronomy products farmers need to grow healthy profitable crops. We provide the energy products farmers need to run and maintain their machinery and heat their homes. Then we buy the grains and livestock products farmers produce and facilitate distribution across the world.
States with higher growth focus in future include Indiana, Washington, and Nebraska 35 Account Managers who work hand in hand with our Territory Account Managers
CHS’ Product Segmentation: CHS segments their products in 3 tiers based on margin, strategic value, etc. 1.Aligned: -Manufacturer products like Fierce Brands, Perpetuo Herbicide, and Maverick Herbicide 2. Influenced: -Off-patent products like Glyphosate -Can influence strategy/position due to cost negotiation leverage / multiple sources 3. Focus: -Segment with higher demand generation where account managers obtain bonus on with higher focus due to higher margins and strategic value. -Private label products like Artect FI (Purchased from Valent USA) -Some blended products with higher margin (5 Blending facilities nationwide)
“CHS remains focused on operational excellence and enhancing efficiency as we navigate this time of softer commodity markets, policy uncertainty and volatility. I commend our employees around the world for their commitment to strong execution in this challenging environment," said Jay Debertin, president and CEO of CHS Inc. "While margin and pricing pressure on ag and energy product categories continues, our sales volumes remain strong. We are well positioned to help meet our owners' spring planting needs with inputs, services and local expertise.”
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