and know how in the industry. They must efficiently deploy and implement all the tools and technologies available to them. Targeting some very influential dairy producers in each area with the Focus Feed program, perhaps, can begin a wave effect of changing perceptions. It will also be necessary to work closely with other influential people in the industry such as veterinarians, private nutritionists, university extension agents, and bankers so as to service clients and increase benefits for all parties involved.
Cargill will not, and is not, interested in competing in all the arenas of the feed
business. Their interest is the higher-margin products combined with consulting services for the producers. They have higher quality and consistency in their products, a topnotch animal-nutrition research facility, and a high level of training to differentiate themselves from the competition. With large-dairy producers who have the capability of efficiently purchasing large volumes of commodities on their own, Cargill should simply obtain their mineral and vitamin-pack business (higher margin) and provide consulting services. In other cases, they may also want to continue alliances with commodity providers to jointly service such accounts. The advantage that Cargill has is that with its available consulting resources and access to new ingredients at better prices, it can help the producer in all areas of their operation, in order to improve their profitability and make sure that the feed program reaches its potential. Being part of the customers business will help Cargill formulate the programs that best fit the customers' operational need. Getting inside that business is the challenge they face.
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