ABOUT MOLINOS MODERNOS • Leading Central American grain-based foods company • 4,000 employees • Distributes products in Guatemala, El Salvador, Honduras, Costa Rica, the Dominican Republic, Haiti and Puerto Rico • Seven mills in Guatemala, El Salvador, Costa Rica and the Dominican Republic handling 700,000 tons of wheat and 50,000 tons of corn annually • Produces wheat and corn flours, including the leading El Sol brand, along with corn grits and baking mixes, for consumer and commercial customers • Produces cookies and crackers at plants in Guatemala and the Dominican Republic • Operates the largest pasta plant in Central America, producing both long (spaghetti, fettuccine) and short pasta, as well as Chinese noodles, for consumers and food manufacturers Combining Quality and Logistics Sourcing wheat for Molinos Modernos milling and food manufacturing businesses, as well as for the larger company’s livestock operations, poses considerable challenges. As executive vice president of grain procurement, Gunther Gossmann must meet the diverse needs of flour mills, pasta plants and cookie/cracker bakeries, along with the separate livestock division. That means paying close attention to price and specific quality requirements, as well as managing ocean freight costs and delivery logistics for products including wheat, corn, soybean meal, DDGS and corn gluten. Gossmann must keep tons of grain moving to ports on the Caribbean Sea in Honduras and the Dominican Republic, and on the Pacific Ocean in Guatemala, El Salvador and Costa Rica. Before beginning to do business with CHS in 2004, Molinos Modernos primarily bought grain on the spot market. Now the company relies on a consistent supplier relationship. During one recent period, Gossmann says, 18 consecutive ships journeyed from the CHS terminal at Myrtle Grove, La., to the Dominican Republic port, with a vessel arriving every 20 days. “Through five years, we have established a business relationship based on trust,” Gossmann says. “We know CHS is one of the most important and largest wheat suppliers with a reputation for quality.” Molinos Modernos President Pando agrees. “We value having a relationship with a cooperative and a diverse company that has similarities with us,” he says. “We also have a drive for excellence. It’s part of our lives, an everyday activity and the best way to compete.” Especially valuable is an ongoing relationship with Barnard and other grain marketing staff. Gossmann and Barnard speak several times each week to gain insight on markets, quality and availability, all of which proved essential during the extreme grain market volatility of 2008 and early 2009. “During times like that, relationships keep you afloat,” Gossmann says. “That’s when you know who’s there for just a one-shot deal and who is there for you long-term.” While the vast majority of the grain he purchases originates in the United States via Myrtle Grove or United Harvest, LLC, joint venture terminals in Washington state, Gossman says the growing CHS global footprint may provide additional opportunity. Adds Garita, “In these areas, CHS is the best supplier, and we are really happy with what we receive from CHS. CHS is wheat producers, not just wheat sellers, and that’s the difference.” Mexico Haiti Dominican Republic Guatemala Honduras El Salvador Nicaragua Puerto Rico Costa Rica = PRODUCT DISTRIBUTION = WHEAT MILLING Panama 24 March/April 2010 CHSINC.COM