CHILL 



45 



Suite 1000 



1101 Fifteenth Street NW 



Washington, DC B0005 



202/785-3060 



U Stephanie Patrick 

 Assistant Vice President 



September 9, 1994 



Jane Shey 



House Committee on Agriculture,, 



Subcommittee on Foreign Agriculture 



and Hunger 

 1336 Longworth House Office Building 

 Washington, D.C. 20515 



Dear Jane, 



Thank you for the extra time you allowed me in trying 

 to respond to Mr. Penny's questions at the June 23 

 hearing. I have tried to answer both questions in a 

 meaningful way but stay within the bounds of our 

 public disclosures. 



I suspect that USDA has actual numbers that they 

 could call up on Cargill's GSM registrations, 

 perhaps even broken down by commodities. To date, we 

 cannot do that in house. However, our merchants 

 believe our profile in the program aligns with the 

 aggregates. In trying to impute what that might be, I 

 must tell you that I was surprised to learn just how 

 much U.S. business is conducted each year under 

 GSM. I had expected a far larger percentage of 

 total U.S. agricultural exports were financed under 

 the programs. In fact, some years it is as low as 5 

 percent. 



As for volumes of export business, the United States 

 still remains the dominant supplier of bulk products 

 in world markets. While volumes of higher value 

 products are substantially less, the growth trends for 

 higher value products make them a force that business 

 people and policymakers must consider. Cargill is 

 positioned to sell both bulk and higher value 

 products. In some areas, there may be trade-offs 

 between sales of the two. However, their fates are 

 closely related. Both bulk and higher value products 

 share a common interest in policies that promote 

 efficiencies and competitiveness that will let U.S. 

 products trade in world markets. 



I hope that we have responded in a manner that 

 addresses Mr. Penny's questions. If we have failed, 

 I'll refer you to the enclosure. Everything you 

 wanted to know about Cargill is right here. We don't 

 do annual reports, but roughly 100 years of company 

 history are covered here in great detail. 



/7'/h . 



pt - / 





