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18 2011 CHS
REVIEW OF OPERATIONS
network and allow for timely, e cient delivery without
overextending inventory requirements.
Domestic fertilizer industry consolidation reinforced con-
tinued development of sourcing options to better serve
CHS customers. New relationships through CHS global
partners further enhanced supply sources for U.S. crop
producers who purchase from the CHS system. CHS crop
nutrients customers also got instant access to their con-
tracts, orders, shipments and other essential data through
a new Web-based information system.
Fiscal  was also a year of performance success for
CHS Country Operations, which serves more than ,
producers through  locally governed retail businesses.
The year brought new locations in Illinois and Colorado,
along with a consolidation in Michigan after year-end, in
addition to business growth throughout the existing opera-
tions. By year-end, those producer-focused operations had
generated a record nearly  billion in revenues on crop
inputs, energy and grain marketing; handled a landmark
 million bushels of grain; and exceeded profi tability
expectations. The Country Operations business model
continues to provide a choice for producers and member
co-ops considering full alignment with CHS while main-
taining local voice.
CHS Nutrition increased volume, productivity and prof-
itability with its line of animal nutrition products under
the Payback® brand, despite an increasingly competitive
marketplace and rising raw materials costs. By focusing
on high-quality products that deliver exceptional value,
CHS Nutrition expanded the market area served by its 
manufacturing facilities. To help control quality and cost,
CHS began manufacturing its own line of liquid feeds
through a joint venture.
CHS Sunfl ower achieved record results in fi scal ,
largely due to its emphasis on hybrid sunfl ower seed that
meets the needs of domestic confectionary and interna-
tional buyers for extra-large seeds. The CHS market for
hybrid sunfl ower seed grew in China and Argentina, with
preferred customer agreements. Demand for jumbo in-
shell seed more than doubled CHS sales of this popular
product to domestic roasters.
With stability in U.S. soybean meal demand and reduced
meal exports, CHS Oilseed Processing and other soybean
processors in the overcrowded industry saw smaller crush-
ing volumes in fi scal . Adequate soybean supplies
and relief through lower fuel costs helped maintain solid
performance levels, despite smaller throughput.
Combined with CHS Protein Foods, a manufacturer of
soy protein food ingredients based in Hutchinson, Kan.,
Oilseed Processing earnings met expectations and
exceeded industry averages. Revenues were supported
by an ongoing emphasis on energy savings and sustain-
ability, which helped minimize costs and environmental
impact at the plant in Hutchinson, Minn., and soybean
crushing facilities at Mankato and Fairmont, Minn.
Dante, S.D.,
producer
Bud Koupal, left,
counts on sales
agronomist Roger
Cuka for advice
to help his
operation grow.