Interview with Joe Tally, Chief Financial Officer*

View Video of the Entire Interview (43.15 minutes)
View Transcription of the Entire Interview

I. Background & Introduction   (Video - 3.24 min)  (Transcription)
      - Joe Tally's background and experience
      - History on the formation of American Crystal Sugar Company

II. Ownership of American Crystal Sugar Company  (Video -2.08 min)  (Transcription)
      - What does a typical farmer/owner look like?
      - Differences among shareholders
      - Involvement of shareholders

III. Keys to Success  (Video - 1.58 min)  (Transcription)
      - Uniqueness of the Red River Valley (climactic conditions)
      - Alignment of goals
      - Timing of purchase

IV. Customers and Distribution Channels   (Video - 0.47 min)  (Transcription)
      - Industrial users/retail

V. Vertical Integration  (Video - 8.57 min)  (Transcription)
      - Reasons for venturing into the fructose industry
      - ProGold Partnership
      - Problems in the fructose industry
          - High input prices/more competition
      - Expanding production capacity
          - The process of selling preferred stock

VI. Financial Strength  (Video - 2.36 min)  (Transcription)
      - Acess to capital
      - Benchmarking with ratios
      - Using financial ratio information
      - The importance of accurate forecasting

VII. Exiting Strategy  (Video - 2.35 min)  (Transcription)
      - Exit Alternatives

VIII. Learning from Experience  (Video - 7.56 min)  (Transcription)
      - Underestimating competitors
      - Overestimating customer loyalty
      - Impact of the CEO on a company
          - Decision-making process
      - Evaluating processes

IX. Reinvesting  (Video - 3.46 min)  (Transcription)
      - Molasses De-sugarization plant
      - Keeping financial strength while simultaneously reinvesting

X. Managing Risk/Major Challenges Ahead  (Video - 4.27 min)  (Transcription)
      - Farm Bill existence
      - Foreign trade issues/Problems with NAFTA
      - Improved efficiency of competition

XI. The Advantages of a Farmer-Owned Cooperative Structure  (Video - 4.41 min)  (Transcription)
      - Advantage/Disadvantages


* Interview conducted by Dr. Michael Boland, Kansas State University.