"Entrepreneurial Agriculture In The Delta Region"

Richard Bell
CEO and President, Riceland Foods, Inc.

• Delta - rich farming area
• rice, cotton, soybeans, wheat, corn & sorghum
• row-crop agriculture
• parts of seven states
• USDA reports by states
• Its potential market impact is diluted
• well developed farm structure - farmers & agribusiness

2. Entrepreneurial

• Entrepreneur- one who organizes, manages, and assumes risks of a business enterprise
  • - emphasis is on risk-taking
  • - individualistic
• Corporate - a legal entity
  • - bureaucratic in nature, not individualistic
  • - can have entrepreneurial spirit
  • -culture clashes between entrepreneurial and corporate philosophies
  • - experience, decision-making processes

3. East Arkansas

• Ricelands role- largest enterprise in 1st Cong. District - farmer-owned but corporate in nature
• Use of entrepreneurial enterprises trucking, printing, electrical services
• Tyson Foods example of outplacing or outsourcing services
• Benefits - cheaper, more efficient - customer focused
• Role of corporate presences as a form of infrastructure

4. Emerging Markets

• International
  • Role of exports
  • Infrastructure in place
    • Rivers, railways, highways, telecommunications
  • Decline of Europe as a market (including Russia)
  • Dramatic rise of East Asia
    • Economic growth
    • Liberal democracies (in varying forms)
  • Emergencies of Latin America as a market
  • NAFTA driven (Canada & Mexico)
  • Economic growth and spread of technology
  • Recession in East Asia; slowdown in Latin America
  • Currency valuation problems
  • Decline in U.S. commodity prices directly related
  • Several years before recovery
  • Rise of protectionism
  • World Trade Organization (WTO) negotiations
    • Negotiating mandate
    • Quality of negotiators
  • Domestic market
    • Shifting demographics
    • Tremendous economic growth
  • Market drivers
    • Population growth - ethnics
    • Away from home eating
      • Home meal replacements
      • Foodservice distributors
      • Franchise retail establishments
    • National marketing
    • Specialty products
    • Health and nutrition

5. Potential of Biotechnology

• Biology & Technology (computer science, engineering physics, chemistry, processing and manufacturing)
• Entrepreneurial in origin, but corporate in application
• Early applications in inputs, potential is enhanced crop and livestock traits
• U.S. agriculture is now supply driven. Produce the crop and then try to sell it. Biotechnology may end up in contracted production at set prices. Crop agriculture may reflect today's poultry and swine industries. Loss of freedom of decision making.
• Biotech will accelerate rates of change. Much within five years
• Adaptation to change. Example of Continental Grain. 185 year old company. Merchandising company. Worldwide network of agents. Privileged information.
• Cargill: 133 years old. Will have 566 mill. bu. storage, 311 grain storage facilities, 210 country elevators

6. Summary

• Delta will continue to be row crop oriented
  • Some niches for specialty crops - turf
• Biotech oriented
• Dual Agriculture
• Missing ingredient - education and training