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16 2011 CHS
REVIEW OF OPERATIONS
From essential crop inputs to world grain markets to value-
added, grain-based food ingredients, producers and coop-
eratives in the CHS system are poised to capitalize on
opportunities to help feed a growing and hungry world.
CHS grain marketing delivered strong earnings in ,
due in large part to its ability to strategically manage
through market volatility and reduced  crop produc-
tion outside the United States, notably in the Black Sea
region. The earnings also refl ected a gain from the sale of
CHS ownership in Multigrain AG, a Brazilian joint venture.
Although the  U.S. corn crop was among the largest
historically, yields below expectations limited carryover
stocks, and continued demand for ethanol manufactur-
ing helped maintain strong prices. Expanding Chinese
soybean demand also helped boost bushels marketed, as
China’s average income level and desire for higher-quality
foods increased.
During fi scal , CHS took several critical steps to
build its northern tier grain-gathering relationships and
Pacifi c Northwest export platform, which serve burgeon-
ing Asia-Pacifi c demand. Plans are underway for four
grain shuttle–loading facilities in Montana, Nebraska and
extensive market footprint and expanding capabilities
help ethanol manufacturing clients with new opportuni-
ties and stronger profi t potential.
Leveraging both its transportation and marketing exper-
tise, CHS also began supplying ethanol manufacturers
with natural gasoline, a denaturant in the production
process, creating another opportunity to provide ethanol
production inputs and enhance system e ciency.
CHS Transportation’s well-known fl exibility, innovative
approaches and extensive resources helped it serve cus-
tomers, despite monumental fl ooding throughout much of
the Midwest that contributed to weeks of delivery di cul-
ties. Each year, the dedicated CHS team travels nearly 
million miles in all conditions to bring customers refi ned
fuels, lubricants, propane, crop nutrients, soy oil, soybean
meal and other products reliably and on time.
AG BUSINESS
Growing global opportunity
• Strong domestic and global grain
origination presence
• Multinational crop nutrients sourcing
• Unparalleled local commitment
Helping producers, member cooperatives and grain cus-
tomers grow is an opportunity that literally spans the
globe. In fi scal , CHS once again demonstrated that
the producer-owned system is more than up to the task,
hitting new marks in its Ag Business segment and taking
decisive steps to ensure future growth.
A new pier segment
nearing completion
is among the
expansion and
upgrade plans at the
CHS Kalama, Wash.,
grain export terminal,
which will strengthen
access to growing
Asian markets.