Invest Relations - How Much Did It Drive Strategic Decision Making?

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I think there's a difference between agricultural commodities and industrial commodities, including energy. For the commodities that are mined, and for the energy complex as a whole, the back drop is sort of seven, eight years of under investment. And so i think agricultural commodities can settle bank down again. I want to talk about invest relations commodities. Much like utilities and other interstructure companies, face incredible investor pressure to be highly efficient,. To minimize long term spending and and to return profits to shareholders expeditiously. So how much did invester relations drive strategic decision making for your companies?

Agricultural commodities is a bit like accounting: you only hear news stories about it when things go wrong. And unfortunately for the world in 2022, a lot is going wrong in agriculture. Russia’s war on Ukraine has devastated one of the world’s great breadbaskets, and global climate disruptions are wrecking havoc on food productivity. That’s led to soaring inflation and increasingly contentious politics, particularly in the developing world.

Sadly, that’s not the only problem the industry faces. Commodities are still traded predominantly on antiquated systems, with the UN estimating that more than 275 million emails are exchanged annually to ship about 11,000 vessels of grain across the oceans. That’s one reason why Lux led the $7 million seed round for Vosbor earlier this summer to build the first digital agricultural commodities exchange.

I wanted to understand more of this extraordinarily complex industry, and so I asked two former CEOs of the largest agriculture commodities companies in the world to weigh in. Joining me (@DannyCrichton) on “Securities” today is Chris Mahoney, former CEO of Glencore Agriculture and now known as Viterra, as well as Soren Schroder, former CEO of Bunge.

We’ll talk about the cyclicality of agricultural markets, the cost disease of infrastructure upgrades, the geopolitical strategies of ag firms, the increasing focus on logistics capabilities, and what the future of digitalization and technology have in store for this critical industry.