João Amorim Faria and Linda Barclay, CHS grain marketer, examine the new state-of-the-art Cerealis semolina mill in Maia, Portugal. ago, expansions and acquisitions have helped Cerealis grow to five mills, five food plants and nearly 600 employees. Yet the business maintains a family feeling, with several descendants of the company’s founders serving on the board of directors and management team. Cerealis is Portugal’s dominant pasta company, as well as its leading miller of baking flour for both consumers and food manufacturers. The company also produces cookies and breakfast cereals. Its family-focused Nacional pasta and flour — a 130-year-old brand it acquired in 1999 — is one of the best-known in the country, while its Milaneza line targets young, urban consumers seeking specialty products and convenience. Cerealis currently mills about 400,000 metric tons of wheat and rye annually. As she established a relationship with Cerealis, CHS grain marketer Linda Barclay recognized Amorim wanted a transparent connection from U.S. growers to the company’s mills. “What CHS brings to Cerealis on a daily basis is a consistent product with clearly understood origination,” she says. “We have always tried to be as close as possible to farmers and co-ops, to have a more direct connection to the grain,” Amorim adds. Amorim and Barclay with a well-rounded view of global market conditions. “I can tell him what crop conditions are in North Dakota, and he makes us aware of what’s going on with crops in France and Spain,” Barclay says, stressing that such knowledge helps Cerealis make sound supply decisions. The company has grown organically. In recent years, however, growth has been driven by acquisitions, along with upgrading existing mills and construction of new facilities, including a new state-of-the-art semolina mill and adjacent pasta plant. The pasta plant is the largest on the Iberian Peninsula, with capacity to produce 1 million packages daily. Global Expansion The Cerealis focus has turned increasingly global in recent years. It has entered the Czech Republic marketplace via a joint venture and now exports products to Angola through African nationals with Portuguese roots. Cerealis products also reach Canada, the United States and, recently, China and South Korea, all countries containing Portuguese expatriates hungry for a taste of home. This expansion underscores the company’s need for reliable supplies of quality wheat, which CHS is positioned to deliver through its expanding global grain origination system. “The fact that CHS has increasing emphasis on serving export markets is very important for us,” Amorim says. “These markets are volatile, so we need a supplier we can count on.” Barclay agrees. “We know that if something were to happen to the U.S. wheat crop, we can originate grain for João from other regions. That means we can keep our commitment to Cerealis 365 days a year, every year.” Growth by Acquisition, Construction Typically, unit trains take wheat from North Dakota to the CHS export terminal at Superior, Wis. Barclay and others on the CHS team coordinate closely with Cerealis to ensure that oceangoing vessels meet the diverse requirements of several Portuguese ports the company uses. Beyond transactions, regular communication — often two or three phone calls a week — provide •• SEE MORE •• Visit chsinc.com/c for a related video. Cerealis President and Chairman José Amorim, grain trading manager João Amorim Faria and CHS grain marketer Linda Barclay discuss market issues. 24 May/June 2011 CHSINC.COM