Perspective from the Grain Trade

Abstract

My remarks reflect primarily my experience and observations at Cook Industries and more specifically, the Agri-Products Group. This group is involved in merchandising grains, oilseeds, oilseed products, feed ingredients, and cotton on a worldwide basis. Other segments of our Agri-Products Group include elevator operations, processing operations, and the entire infrastructure that augments commodity trading. We hire individuals from a wide variety of backgrounds. I believe this to be logical for two reasons: it is very difficult, if not impossible, to stereotype individuals as the only type suitable for a particular job, and the qualifications of various jobs differ. For example, Cook's Agri-Products Group is divided into a grain division, a processing and refining division, a cotton division, a controller's department, ocean freight operations, economic research, and European operations. There is a need for special qualifications and/or special assignments within this breakdown. With this background, let's turn to what Cook is looking for in a young person to fit the basic role of our business. In commodity merchandising management, we consider the following attributes. Grades are not keenly important as long as they are reasonable (A-C), but we like to see how a person has applied himself or herself. A person's record is examined to observe progress, as many may be late starters. Also, we are interested in his/her activities, not just the number, but the kind of activity and the scope of responsibility. Aggressiveness takes different forms, but we need go getters and self starters, people who involve themselves and make things happen. A person must be able to communicate with people in order to extract information and get things done. A person must listen to and hear what people are saying (very important to working in markets). One characteristic that is important is a person's ability to make decisions and not always be qualifying recommendations. We need people who can stand up to constant pressure. A good sense of humor is a must to survive in commodity merchandising. A person must be analytical; he or she must be a quick thinker who likes to play with numbers and sort out answers on an ongoing basis. A person must have a strong curiosity to find out how markets work. We need people who cannot be pushed around and who can defend his or her point of view. With respect to academic background, traditional strong liberal arts courses are producing the majority of management-oriented grain merchants in grain companies. As a general rule, we are looking for students with backgrounds combining such subjects as economics, English, history, philosophy, mathematics, languages, and political science. I feel real progress has been made in identifying the type of person we strive to hire. We look for people who can grasp relevant situations. For example, what are the impacts of changes in price support levels, changes in supply-demand situations for major crops, dry weather in Russia, spread relationships between various markets and commodities, supply and demand for freight, and feeding relationships? Second, the person needs to be able to sort out the main issues and get to the heart of the matter right away. Third, the person must be objective. The price paid for a commodity or the company's position today may not be relevant in assessing the market for tomorrow. Fourth, decision making is extremely important. A person can be a good analyst, be objective, and identify main issues, but if he fails to act on the basis of his Willard R. Sparks is with Cook Industries.