Continental Grain 200th Anniversary Book

200
200 Years of Global Partnerships
IN MEMORY OF MICHEL FRIBOURG
DEDICATION
This book is dedicated to the Fribourg family, members of the Board of Directors, and the employees of Continental Grain, both past and present for their loyalty, friendship and commitment.
1913-2001
TABLE OF CONTENTS
A Message from Chairman and CEO Paul Fribourg . . . . . . . 6 The Fribourg Family Legacy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Profile of Michel Fribourg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 4 An Overview of the Grain Industry . . . . . . . . . . . . . . . . . . . . . . 1 8 The Foundation Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 6 Global Expansion in the 20th Century. . . . . . . . . . . . . . . . . . . 3 8 Recalibrating for the 21st Century. . . . . . . . . . . . . . . . . . . . . . 6 6 Today and Tomorrow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2
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A MESSAGE FROM CHAIRMAN AND CEO PAUL FRIBOURG
A MESSAGE FROM CHAIRMAN AND CEO PAUL FRIBOURG
Grain is one of the few resources that is central to modern civilization. It is grown on more land area than any other commercial food, and there is more world trade in grain than any other crop. Its no wonder that an important industry grew from this key commodity. For 200 years, starting in Europe and then in the U.S., Continental Grain Company has played an important part in the global development of the grain industry, and more broadly agribusiness. Starting in 1813, and into the 21st century, through six generations of ownership, we have been very fortunate to build and sustain a successful and diversified global business that now includes broad food and agricultural interests, as well as longlasting partnerships with talented management teams around the world. While we have achieved a notable legacy of success, it hasnt always been easy. There were times when we had to change our strategy and make difficult decisions to ensure the very survival of the company. But survive we did. Each generation kept the business alive by reinventing the company while preserving our longstanding culture and values. We made sure to continue the legacy and seize new opportunities to sustain and grow the company. But its more than a story about growth. Continental Grain, especially in the pre-Internet age, was able to promote international trade and partnerships, ensure the exchange of vital goods, help build economies around the globe, and foster a foundation for long-term political cooperation among nations.
In the mid-20th century, our father Michel known to everyone as MF possessed a world view and a unique ability to engage people and ideas, which helped him turn a mediumsized family business into a professionally run, global enterprise that conducted business and forged partnerships in new and exciting regions of the world, from Africa and China to Russia and Latin America. Thankfully, MFs influence remains very much with us, to guide us in our decision making. One important lesson is to never let success or ego get in the way. The key is to stay humble and realize that both life and business require constant learning, through which we find ways to be better and adapt new practices and technologies that will help us achieve our goals. We still consult with MF on every key business decision by asking What would MF do? knowing he will continue to guide us with his business wisdom. We also run our business as a meritocracy and show respect and regard for individuals both inside and outside the company. It follows that our integrity and reputation were and are everything a tenet that has carried us through two centuries in an often-turbulent world. We have had the benefit and pleasure of working with many great people over the decades. From our board of directors, to our employees, to our partnerships around the world, we are so fortunate to have collaborated and continue to collaborate with the best and brightest people who are aligned with our mission people who are wise, thoughtful and caring, people who are willing to commit their time and exchange ideas and opinions.
With the support of so many talented people, and Being privately held, we could take risks with a long- with a remarkable legacy on which to build, we will term view that most public companies wouldnt be continue the journey and look forward to the future able to do. And sometimes those risks were with great enthusiasm. significant, as the company pioneered new markets, new commodities and untapped parts of the world.
THE FRIBOURG FAMILY LEGACY
Michel Fribourg, his sisters, and a friend in France, circa 1923.
In 1848, Simons son Michel undertook a dangerous and difficult trip to Bessarabia (now Romania) with bags of gold to purchase grain, which he brought back by boat up the Danube and the Rhine, helping to feed a hungry Belgian population and
Simon Fribourg circa 1850.
In April 1997, Paul J. Fribourg was named chairman and chief executive officer of Continental Grain Company. His father, Michel Fribourg, became the company's chairman emeritus. This event marked the sixth generation of the Fribourg family to lead the company, going back to 1813 when Michel Fribourg's great-great-grandfather, Simon Fribourg, founded the commodity trading business in Arlon, France (which is now in Belgium). Simon's business was nearly two decades old when the industrial revolution commenced, forever changing the face of Europe and creating fertile ground for the Fribourg commodity business to flourish.
Arthur Fribourg in military dress.
creating new opportunities for the family business. In the coming half-century, Europe would experience unprecedented scientific progress and social change, launching significant and wide-ranging developments in industry, commerce and trade that brought vast new wealth to western European countries. To continue seizing on these opportunities, Michel Fribourg, together with his two sons Arthur and Paul, the former who had taken an active role in his fathers business two decades earlier, expanded the business
Ren and Michel Fribourg at the 30th Anniversary party of Continental Grain in the U.S. New York, 1951.
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responsibilities for the company from his father, Michel. Arthur then retired and turned the business over to his sons Jules and Ren. Jules was then only 27 years old and would become known in Antwerp as one of the ablest and most aggressive businessmen, whose daring ventures until his death in 1944 led him to develop his business into an important international firm.
Portrait of Ren Fribourg by Salvador Dali.
geographically and into flour milling, constructing flour mills in Arlon and Luxembourg in the 1890s. Before the century was over, Europes extensive new system of railways would not only significantly increase the speed of shipping goods, but would also reduce the cost of transportation by half. And with the proliferation of modern, heavy industries came large towns and urban centers and the emergence of a new class of citizens able to survive and prosper in business rather than by owning or tending to land. As the effects of this industrial revolution spread, a society and marketplace for the Fribourg business were made immeasurably stronger. Around this time, Arthur had assumed leadership
Michel Fribourg
To carry Continental Grain through its first phases birth, infancy, and youth, with the trials and errors of the learning process required the qualifications of a pioneer. Such a person was my father (Jules), who along with his brother, inherited from earlier generations of Fribourgs, a local Belgian grain-trading and flour milling business. My father was a born leader, a man of great ambition and drive, possessed of a rare trading sense. He developed the little family business into a worldwide grain-trading house, competing on equal terms with its major rivals. Yet I remember him as being rather a shy, modest man with a quick temper and a very warm personality. My father surrounded himself with partners and associates whose characteristics were similar to his own. Together, they had the foresight to create a strong foundation in the New World.
The forces that transformed Europe from an agrarian to an industrial society enabled the Fribourg descendants to flourish in a world of commerce that included the rise of merchants, manufacturers, bankers and commodity traders. This world would influence Continental Grain as its business grew, first in Europe and then in the United States, into becoming a major global company. For Michel Fribourg, trading grain and selling food to the world had a degree of nobility to it. This gave a sense of pride to the employees of Continental Grain. As observed by Arthur Liman, former Continental Grain board member, People would walk around and say I am a grain mana connotation of being something that was almost superior to anybody else on earth.
Arthur Liman
Paul and Charlie Fribourg
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After Simon Fribourg founded a small grain-trading business in Arlon (which is now in Belgium), six of his descendants have led the company from the mid-1800s to today. Michel Fribourg 1 , Simons son, began working with his father and expanded the companys scope to include all of the large markets in Belgium, helping to provide food to a widening population. Later, as Belgium became a major business center, Michel enlisted his two sons, Arthur 2 and Paul to help him run the business. In the 1890s, under Arthurs leadership, the business expanded into the flour milling business. When Arthur retired, he
turned the business over to his two sons, Jules 3 and Ren 4 , who had been involved in the growing enterprise since they were boys. Under Juless leadership, the firm, now based in Antwerp, made its first ventures into international trade in the decade before World War I. During and after the first war, Jules and Ren took the business to London and then to Paris, where they found themselves at the center of the international grain trade, including the establishment of business contacts in the United States, which Ren helped to solidify. Jules, a visionary with a pioneering spirit, understood that the Midwest region of the United States was emerging as a major source of grain.
In the wake of the German invasion of Belgium and France in May and June 1940, Jules Fribourg and his family gathered in Bordeaux and, in fear of what might happen in France, decided to leave for the U.S.. Jules died in 1944, as the war was coming to a close. Ren took over as chairman of the board, also serving as acting president until Jules son Michel returned from active military duty. Michel 5 , who was named after his great grandfather, took over the company at the age of 31. Under his leadership, Continental Grain would successfully navigate both the devastating aftermath of the war and the opportunities of the 1950s, 60s and 70s,
including groundbreaking and historic grain deals with the Soviet Union and China and other significant international expansion. Upon his college graduation in 1976, Michel's son Paul 6 joined Continental Grain. After two decades of increasing levels of responsibility at the company, he became CEO in 1997. Throughout his tenure, Paul has guided the company and its transformation from its traditional role in grain trading to its current position as an innovative holding company that owns, invests in and partners with a broad range of well-managed businesses in the global food and agriculture industry.
PROFILE OF MICHEL FRIBOURG
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Initially, not fully prepared to take over the business when his father died near the end of World War II, Michel eventually gained the experience, respect and authority he needed not only to lead the company, but to transform it into an influential global company encompassing a range of agribusiness enterprises. At the same time, he left an indelible mark on all who knew him.
historic agreements with the Soviet Union and the Peoples Republic of China. Setting Michel apart from most business leaders was his strong, even driving sense to do what was right. His human touch helped him cultivate relationships around the world. His reputation and that of the company always stood uppermost in his mind and in his decisions. And he did not
To my father, business and family were interchangeable almost a singular entity. Paul Fribourg
Michel Fribourgs impact on Continental Grain was profound and would be felt for generations. The aspirations he had for the company were guideposts for setting its future course. For 53 years, he provided invaluable leadership to the company and to the intricate network of global trade and economic cooperation that fueled the 20th century. A respected and admired leader of this globe-circling industry, Michel pioneered the opening of trade into many new markets around the world, including
PROFILE of MICHEL FRIBOURG
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PROFILE OF MICHEL FRIBOURG
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That kind of balance and drive requires a special person. In many ways, MF was unusual for the business world. He was, essentially, an introvert quiet, not particularly social yet underneath, he harbored a steel-like equilibrium that enabled him to take great risks while demonstrating loyalty and affection for his family, friends and associates.
Business Week cover March 11, 1972.
Perhaps most important, he understood the importance of trust and integrity in a tough global business at a time when a deal was made on a handshake. Add it all up and its clear that MF led a full and complete life, both professionally and personally, Paul explains. He had no sense of remorse or regret a man at peace with himself and what he had accomplished. If he had planned out his life, he couldnt have scripted it any better. Today, Michel Fribourgs vision, his strong belief in trusted partnerships and his concern for people continue to be part of the legacy of Continental Grain.
For 53 years he transformed his family business from being a European-based trading company into a U.S.-based multinational corporation involved in a broad range of agribusiness enterprises. He pioneered the opening of trade with many new markets around the world, including the Former Soviet Union and the Peoples Republic of China. He was a respected and admired leader of this globe-circling industry. He was known around the world in ways that redounded to the great credit of the company and his family. From the Board of Directors tribute to Michel Fribourg
Mary Ann and Michel Fribourg in their Manhattan townhouse.
waiver in his adherence to high ethical standards. The key to our success, he would say, is our people. And so, our mothers and fathers lives were entwined with the lives of the people of the company, says Paul Fribourg.
They understood the word partnership in all its ramifications that we were all in this adventure together and would share in its successes and failures. To our father, business and family were interchangeable almost a single entity.
AN OVERVIEW OF THE GRAIN INDUSTRY
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the various breadbaskets of the world. At the same time, in the Soviet Union and soon after in China, disastrous collectivization programs effectively turned the world's largest farming nations into net importers of grain. The grain trade is nearly as old as grain growing, dating back to around 9,000 BC. While subsistence-level production was common throughout history, the grain trade only became possible when production was geared towards creating a surplus for commercial agriculture. Early trade was most likely by barter, because hauling large amounts of grain from one location to another was so difficult until the advent of the wheel and more effective means of transportation. As they became more industrialized and urban, England and other European countries increasingly imported grain from By the second half of the 20th century, the grain trade was divided between a few stateowned and privately owned giants. The largest private companies, known as the "big five at the time, were Cargill, Continental Grain, Louis Dreyfus, Bunge and Andre. Major grain companies invest in shipping, grain elevators, communications and processing plants mills that make wheat
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into flour and corn into animal feed, and crushing plants that convert soybeans into cooking oil or meal. They also operate the grain pipeline from farmer to consumer. While grain was once sold by the sack, it is now moved in bulk by railcar or barge, loaded onto huge ships to overseas
Modern issues affecting the grain trade include food security and food safety concerns, the increasing use of biofuels, the controversy over how to properly store and separate genetically modified and organic crops, the local food movement, the desire of developing countries to achieve market
destinations and then transported by truck or railcar. Railways have switched from coal to diesel fuel, and introduced hopper cars to carry more grain faster and with less effort. Old wooden grain elevators have been replaced by massive concrete inland terminals, and rail transportation faces competition by ever-larger trucks.
access in industrialized economies, climate change and drought-shifting agricultural patterns, and the development of new crops. But in this changing marketplace, one thing is certain: The demand for grain and other key agricultural commodities will be greater than ever to feed a growing global population.
Its common for private equity firms to operate as if relationships are a zerosum game. Continental Grain comes from a very different orientation toward partnership. So at Arlon Group, we have the benefit of the cultural dedication to partnership that Continental Grain has built over the course of history.
Managing Principal, Arlon Group
MICHELLE BROOKS
The reason I stayed with the company a long time is because of the influence that MF had on me. I was impressed with his integrity and compassion, and he always put importance on the people of the company.
Former Executive Vice President and Chief Operating Officer, Continental Grain
VART ADJEMIAN
Integrity is at the foundation of this company. It always impressed me how everyone is always talking about doing the right thing in the right way. The family, the close-knit group of people here, really help to maximize the value of the company.
Executive Vice President and Chief Financial Officer, Continental Grain
You have to evolve with the world, participate. Thats what Michel did, and he created an empire.
Former European Senior Executiver, Continental Grain and Family Friend
PIERRE HAAS
It's dramatic to compare the company from 1954 to 1970. We were doing business in places that no one would have dreamed of. It was a wonderful time for me, the company and the world.
MF was a very special person. He had a mystique and people wanted to meet him.
Former Senior Managing Director, International Finance, Continental Grain
MIKE LASERSON
Former Board Member and Senior Vice President, Continental Grain
BEN NORDEMANN
FRANK BAIER
The Paintings and Tapestries of Michel Fribourg

Most people knew Michel Fribourg as a man who appreciated and understood art, literature and culture, as well as business. But few knew that he was also an accomplished artist in his own right, creating paintings and tapestries throughout his life. Several of his works are presented throughout this book.
The Foundation Years
THE EARLY YEARS OF CONTINENTAL GRAIN SET THE STAGE FOR EXPANSION IN EUROPE AND AMERICA, FOLLOWED IN THE MID-20TH CENTURY BY WAR, PROSPERITY AND THE COMPANYS EVOLVING GLOBAL INFLUENCE. THIS INFLUENCE WOULD NOT ONLY GENERATE UNPRECEDENTED GROWTH, BUT ALSO SPUR INTERNATIONAL TRADE AND POLITICAL COOPERATION FOR DECADES.
1842 1813
A grain trading business is founded by Simon Fribourg in Arlon, France (which is now in Belgium). Simons son Michel joins the family business at the age of 18.
1890s
The company enters the flour milling business, building its first millin Arlon (which is now in Belgium).
1848
Business grows substantially during Belgian famine.
1890
Arthur Fribourg establishes a firm under his name in Antwerp.
Early 1900s
Arthur Fribourg turns over business to sons, Jules and Ren, who begin expansion of international business.
1813-1914
THE FOUNDATION YEARS
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From humble beginnings, a small family grain trading business was able to take advantage of unexpected opportunities that emerged from the entrepreneurial forces of the Industrial Revolution.
Born in 1790 in Sierck-les-Bains (Lorraine), France, Simon Fribourg left Sierck-les-Bains in 1813 and settled 60 kilometers north in Arlon, France (which is now in Belgium). There he founded a small grain-trading firm. In 1842, Michel Fribourg, the son of Simon Fribourg, joined his father in business and expanded it to all of the large Belgian markets. In 1848, during the Belgian
famine, Michel Fribourg undertook a dangerous and difficult trip to Bessarabia (now Romania) with bags of gold to purchase grain and bring it back to Belgium by boat up the Danube and the Rhine. From the beginning, the commodities trader thrived on the vicissitudes of nature and the ever-present need for food. In addition to natural disasters, wars played a
Arlon, circa 1890
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THE FOUNDATION YEARS
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major role in the companys history. Because Belgium was not involved in the Franco-Prussian war, in the 1870s, it became an important business center. Michel Fribourg and his two sons, Arthur and Paul, were able to expand the business. In 1890, Arthur Fribourg established a firm under his own name in Antwerp, and about the same time, in partnership with his father and his brother Paul, went into the flour milling business and constructed mills in Arlon and Luxembourg. Arthur then retired and turned the business over to his two sons, Jules and Ren. Jules was only 27 years old. He had been in the family business since the age of fifteen, and had studied the grain business in Germany and England. Through the enterprise of Jules Fribourg, known in Antwerp as one of the ablest and most aggressive businessmen, the firm made its first ventures into international trade in the decade before the Great War. In October 1914, Arthur Fribourg and his two sons took the last ship to leave Antwerp before the city fell to the Germans. In London, Jules and Ren then began the expansion of their international business.
Jules Fribourg Ren Fribourg Arthur Fribourg, circa 1905
After 77 years in Arlon and 24 years in Antwerp, the Fribourgs were now at the center of the international grain trade. They took advantage of the many opportunities that wartime business offered. In 1916, Jules and Ren moved from London to Paris where they would remain until 1940. It was also during the war that the first business contacts with the United States were established. Ren Fribourg spent two years in the U.S. from November 1916 until the Armistice. This was to become the start of the companys global expansion.
We've had some great successes and we've made some big mistakes, but I think we've learned from the mistakes so the business today is stronger and is thriving and I think really has a great future.
Vice Chairman, Continental Grain
MICHAEL ZIMMERMAN
This is a company that cares about people and allows them to grow and develop. The people who work with Continental Grain for the next 30-40 years will be exposed to all kinds of things. I'm glad I had the opportunity.
Senior Vice President and General Manager, ContiAsia Division, Continental Grain
NICK ROSA
People are the cornerstone of this company. This company was able to grow, evolve and increase its global reach because of the ideas of its people, not just because of senior management or outside forces.
Executive Vice President, Chief of Human Resources & Administrative Officer, Continental Grain
TERI MCCASLIN
Even though I haven't worked for the company for over 20 years, I still feel very much a part of it and devoted to the the family.
Former Senior Vice President, Human Resources, Continental Grain
MARV BERENBLUM
The company is willing to work at a problem, decide what's best and make a decision.Their knowledge, reputation, and experience allow them to make decisions quickly and rationally.
When I think about Continental Grain, I think about a fantastic group of entrepreneurs and a great family at the helm.
Chairman and Chief Executive Officer, Unibank S.A.
F. CARL BRAUN
Former President and General Manager, Finagrain, Continental Grain
POUL SCHROEDER
The Paintings of Michel Fribourg
Global Expansion in the 20th Century
1975
Allied Mills acquires Coronado Feeders, the first facility in what would become Continental Grain's Cattle Feeding Division (now part of JBS Five RiversCattle Feeding LLC). The cattle feeding business expands with the acquisition of XIT Feeders in 1978, Colorado Beef in 1979 and Grant County Feeders in 1981.
1964
Continental Grain sells one million tons of wheat to the Soviet grain-purchasing agency Exportkhleb, the first major U.S. grain sale to the Soviet Union.
1981
Allied Mills, Inc.is merged into Continental Grain.
1921-1939 1919
Compagnie Continentale dImportation France (CCI) is founded; the company begins its global expansion. Jules Fribourg expands CCI into a worldwide company and opens offices throughout Europe, Asia, Africa and South America.
1944
Ren Fribourg becomes acting president of the company; New York becomes the defacto headquarters.
1972
The company makes a major, multi-million-ton sale of grain to the Soviet Union.
1997
Paul J. Fribourg is named Chairman and Chief Executive Officer of Continental Grain.
1921
The company establishes a U.S.-based business in Chicago, Illinois, under the name Continental Grain Company.
1940
In the wake of the German invasion of France, the Fribourg family leaves Europe for the United States aboard one of the companys freighters.
1965 1945
Michel Fribourg becomes president at the age of 31 following his discharge from the U.S. Army. Continental Grain acquires 51 percent of Allied Mills, a major feed producer as well as a producer of fresh poultry. The acquisition brings the company into livestock production and processing and provides the foundation for the subsequent development of Wayne Farms LLC, the company's current poultry business.
1981
Continental Grain opens the first foreign-owned feed mill in China in a joint venture with Charoen Pokphand. The new business, Conti Chia Tai International, transforms the Chinese feed and animal husbandry industry and paves the way for the company's further expansion into China.
Mid-1980s
The company forms a formal Board of Directors.
1998
Continental Grain Companypurchases a 51percent interest in Premium Standard Farms, one of the largest fully integrated pork producers in the United States.
1915-1998
GLOBAL EXPANSION IN THE 20TH CENTURY
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During some of the most turbulent decades in history, marked by two world wars, the Great Depression and a Cold War, Continental Grain Company found a way to overcome formidable obstacles and become a major international business.
To become an international grain trader in the 1800s, one did not need large amounts of capital or massive grain depots, ships, and other infrastructure. What were needed were credit, a telephone, personal connections and a sound knowledge of the technical details of trading. Charm, good instincts, luck and guts didnt hurt either. Six important transformational events occurred, which changed Continental Grain into a major international company in the 20th century.
to transform CCI into a worldwide trading company, with offices in the Netherlands, Italy, Spain, England, Germany, Romania, Bulgaria, Yugoslavia, Argentina, French Indochina (now Vietnam, Cambodia, and
Opening International Offices

The first significant event occurred in June 1919 when Jules and Ren Fribourg, together with other partners, founded the Compagnie Continentale dImportation in Antwerp. In December 1919, the Fribourg brothers, with their partners, founded Compagnie Continentale dImportation France (CCI), which became the headquarters of the firm. Jules Fribourgs dynamic force and daring ventures led him
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New York office located at 2 Broadway, which was later to become Continental Grains world headquarters. Shortly thereafter, the company purchased its first U.S. grain elevator in St. Louis, Missouri, in order to procure commodities for export. Jules Fribourg, himself, made two trips to the U.S. in 1930 and 1931. To also capitalize on this limitless new market, in 1930, the company leased a Galveston, Texas, terminal from Southern Pacific Railroad. This led to the second significant event the evolution of Continental Grain in the United States into a grain originator from the interior to export ports. This was accomplished through the leasing and eventual purchase of grain elevators. As it turned out, the Great Depression (the period 1929-1939) served Continental Grain well, because the company was willing to take the risk and purchase existing U.S. grain facilities at bargain prices. During this decade-long financial collapse, the company purchased grain elevators across the country in such key locations as Kansas City, Kansas; Nashville, Tennessee; and Toledo, Ohio.
By the end of the decade, and after less than 20 years in the United States, the company had established both a sophisticated grain network and a stable and growing business in North America, including offices in New York, the Midwest and a West Coast outpost. In the wake of the German invasion of Belgium and France in May and June 1940, Jules Fribourg and his family gathered in Bordeaux and, in fear of what might happen in France, decided to leave for the U.S. As it was impossible to travel directly to the U.S., Jules, thirteen relatives, and Jules personal physician, having been able to obtain visas for Portugal, left Bordeaux for Lisbon on June 18, 1940. Meanwhile, Jules son, Michel, working for the French Ministre de la Marine Marchande in London, diverted one of Continental Grains freighters to Lisbon to pick up the group in Lisbon. As the family had been unable to secure U.S. visas in Lisbon, the freighter set sail for Santo Domingo where the group remained until they obtained their U.S. visas. They arrived in New York in August 1940. Jules Fribourg began to run the business
Chicago Board of Trade.
Laos), Morocco, Siam (now Thailand), and Malaya (now modern Malaysia).
This being 1921, Jules would have been considered nothing short of a pioneer in this undertaking. Capitalized with $50,000, the company established a U.S.-based business, which was then named Continental Grain Company. At that time, the Fribourg brothers also purchased a seat on the Chicago Board of Trade for $6,000. To further strengthen its presence in the United States, the company established a
Establishing a U.S.-Based Business

Jules Fribourg was a remarkable visionary who understood that the Midwest region of the United States was emerging as a major source of grain; hence, the need to establish a U.S.-based business.
Jules Fribourg
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New York City
Michel saw the worlds needs and the inadequacy of the worlds grain supply to be totally inexplicableand that adequate diets and supply of food would do as much to make the world a better place than a mutual defense pact or nuclear energy treaty.
MORTON SOSLAND Continental Grain Board Member
Michel Fribourg, U.S. Army
from New York, which then became the defacto company headquarters. He then became gravely ill and died in 1944. At that time his son, Michel, was in the U.S. Army Intelligence Corps. Stewardship of the company passed to Michels uncle, Ren, who took over as chairman of the board and agreed to serve as acting president until Michel returned from active duty.
Company Headquarters Moves to the United States

Assuming the presidency of what was a vast family enterprise after he was discharged from the U.S. Army, Michel, at the age of 31, had to face the reality that many of the
companys European operations had been decimated by the war, which left the American business by far the strongest operation. And then, in the third significant event for the company, he made the decision that the United States would become the companys official headquarters. With European and Asian agricultural areas devastated by war, and the populations of these continents near starvation, American output of foodstuffs increased sharply in
the late 1940s. To take advantage of this opportunity, Continental Grain continued to make substantial investments in a broad network of grain elevators and other components of commodity trading. The companys operations grew dramatically. Joseph Feuer and Willelm C. Schilthuis were two senior executives who played a key role in Continental Grain in the 1940s. The strides that Continental Grain achieved during the postwar period were significant..
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Emphasis on Talent
As the company expanded, Michel Fribourg recognized that people were the cornerstone of Continental Grains continued success. The company set about recruiting graduates from top universities and business schools to create its future leaders and managers. Great emphasis was placed on the training and development of people from entry level to management. Significant opportunities were provided early in careers to provide employees with exposure to different parts of the business in various parts of the world and equip them with the skills to become true entrepreneurs and international business professionals. This focus on people became a hallmark of Continental Grain still in effect today and was to become the fourth significant event.
negotiations, Continental Grain finalized a historic grain trade agreement with the Soviet Union, becoming the first company to export American grain to the U.S.s cold war adversary. Shipments began in the early weeks of 1964 one million metric tons of wheat at world market prices. These would be the first shipments under an authorization granted by President John F. Kennedy just before his death in November 1963 to meet the needs of the Soviet people whose wheat harvest had failed.
Total reliability and trust were paramount for the Chinese at that time, since they were inexperienced and had no knowledge of how to work with the West. Their sole frame of reference was being disadvantaged as a result of 19th century colonialism. Continental Grain was prepared to, and acted on, the basis of mutuality of interests and understood that its business interests could be preserved only if it could be perceived by the Chinese as contributing to their well-being and development. Mr. Kissinger continued, The business deals Continental Grain made in Russia and China, of course, had a significant business aspect, but they also had impact psychologically and diplomatically in the sense they were symbols of how America could contribute to countries that were in a great deal of difficulty. This happened at a time when, for foreign policy reasons, an improvement in relations in the case of Russia, and an opening of relations in the case of China, were considered very important by the leaders of the country.
Board Member Henry Kissingers Perspective

People dont remember that U.S. trade with China in the 1970s was less than with Honduras about $300 million a year. In opening relations with China, there was no baseline because there had been no communication on any substantial level for 20+ years and next to nothing on the business side because China was sanctioned. We started from zero into projects of some size. That was a formidable task. Now with a number of partners in China, Continental Grain is able to help the Chinese feed a billion people.
The Great Soviet Grain Deals and the Opening of the China Market
The fifth significant event involved the initiation of trade with the Soviet Union and China. Soviet Union After weeks of intensive and secret
At the time, Michel Fribourg said that the deal was the largest single grain and freight transaction in Continental Grains history and would make a significant contribution toward solving the countrys balance of payments problem.
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Two Historic Grain Deals with Russia

Michel Fribourg looks on as Nikolai Belousov signs the historic ten million ton grain deal in New York.
Signing of the one million ton wheat contract in Moscow, January 7, 1964.
(left to right) Gustav Meerof, Continental agent for Eastern Europe, Leonid Kredov, VP Exportkhelb - Moscow, Ben Nordemann, Continental Grain - New York, Leonid Matveev, President Exportkhelb - Moscow, Roy Folck, VP Continental Grain - New York.
Text from the plaque presented to Nikolai Belousov and associates on July 11, 1972
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The story of Continental Grain is a story of a great family that has kept traditions and particular efforts through whole succession of generations, which is very difficult to do. They have been an effective commercial enterprise, but one never questioned their sense of public service. They are a private company thats been run as if its a public company, which they did not need to do. Theyve been meticulous in their ethics, commercial
China
The grain deal also helped to smooth the political path to what was then called dtente. The desire to sell grain to the Soviets converged with the desire to engage the Soviets on as many fronts as possible, creating linkages between economics and politics, and giving the Soviet leadership a long-term vested interest in developing a working relationship with the United States. At the time, many people thought that it was morally wrong to deal with the enemy, notes Charles Fribourg, Directeur General, Arlon Group (Europe) S.A., and a member of the companys board of directors. It was the Cold War and the deal was very controversial, he adds. MF saw the opposite; he saw it as a political opening that would reduce tensions, and thats what happened. And, of course, it helped to feed a starving population. Meanwhile, in November 1971, in a deal personally arranged by Michel Fribourg, Continental Grain continued its developing relationship with the Soviets by selling them 900,000 tons of U.S. government surplus barley and two million tons of corn. In early 1972, moreover, Continental Grain scored another achievement with the Soviets, selling them nearly six million tons of American grain and soybeans, plus an undisclosed amount of foreign foodstuffs after Soviet crops failed because of bad weather..
orientation and patriotic sense of country.

HENRY KISSINGER Continental Grain Board Member
This lucrative trade agreement with the Soviet Union was followed more than a decade later by a similar agreement with
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the Peoples Republic of China, when Continental Grain became the first company to export American grain to that country. This occurred just prior to the Nixon administrations efforts to restore diplomatic relations, which included the then-presidents historic trip to Beijing.
To foster these key relationships, Michel Fribourg became the founding director of the US-USSR Trade and Economic Council and the US-China Business Council, as well as a member of the prestigious Council on Foreign Relations..
European management team, February 1984 (left to right): Fritz Mudde, Joseph Fainas, Vart Adjemian (2nd row), Poul Schroeder, Pablo Pastega, Filippo Galli, Paul Fribourg
Grain Trading Expansion

By this time, Continental Grain was handling approximately a quarter of the worlds international grain shipments and a fifth of the grain exports of the United States. The company held three million tons of domestic storage capacity and half a
million tons abroad. To move the products it sold, the company operated numerous country grain elevators, 13 river stations, 65 barges, and eight North American port elevators. The company also leased hundreds of railroad cars and as many as 25 cargo ships.
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On December 22, 1977, Continental Grain suffered a major setback when a massive series of explosions destroyed its grain elevator in Westwego, Louisiana, part of the companys New Orleans operations and the companys largest grain export facility. Static electricity set fire to grain dust destroying 45 of the facilitys 72 silos; 36 workers lost their lives. A year later, Continental Grain announced that it would invest $200 million to rebuild its New Orleans site, constructing a new fire-safe elevator. Since intelligence gathering was another key to successful grain trading, Continental Grain maintained by the early 1970s, an
integrated worldwide communications system that fed 5,000 messages a day in and out of the New York headquarters. Messages would come from posts in Europe, Asia, Latin America and the Middle East, reporting on bids and offers for grain, crop and weather conditions, as well as political and economic trends, etc. At the time, Michel Fribourg attributed the companys success to its inherent flexibility, due to its privately held status and the entrepreneurial spirit of its people. Our management, indeed our entire business, is based on what human beings can accomplish, he said. In a book about multinational corporations, Global Reach, the authors described the corporate leaders who emerged after the war as world managers, because they were the first in history to make a credible try at managing the world as an integrated unit. Continental Grain during this period, led by Michel Fribourg, was a perfect example of this trend.
Diversifying from Grain Trading to AgriIndustries and Financial Services

Against the backdrop of these groundbreaking trade agreements, Continental Grain embarked on an
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This successful enterprise is rooted in the ethics and value system that animated the company over the decades and generations. I think Michel inherited these values of integrity, steadfastness and a long-term view of protecting the family interest, and those values are still in place even though the nature of the business has changed The ideas of trust and integrity and I keep stressing for the long term are still the hallmark of Continental Grain today.
RON DANIEL Former Continental Grain Board Member
aggressive acquisition strategy during the 1960s and 1970s, to broaden the companys spheres of operation in different but related agribusiness sectors. This became the sixth significant event to transform the company. In 1965, the company acquired a 51 percent interest in Allied Mills, Inc., of Chicago, Illinois, an animal feed producer, later acquiring the other 49 percent interest. Allied Mills became the industrial arm of Continental Grain. Beginning under the leadership of Roy Folck, first CEO of Allied Mills, and then by Donald Staheli who succeeded him, Allied Mills expanded over the years to include poultry, beef, pork and pet food businesses in the United States. In 1970, Continental Grain also entered the commodities futures brokerage business with the creation of ContiCommodities. Over time, it became a leading commodities futures brokerage company with a global network of offices. Its original purpose was to provide hedging services to Continental Grains customers to help them manage their risks. The company also set up Continental Milling Corporation, which owned and In its trading area, Continental Grain diversified into ownership of transportation assets and became a leading player in the inland barge business (ContiCarriers and Terminals), and the shipping business with the creation of the Overseas Shipholding Group in partnership with the Recanati family. The company also diversified into trading of other commodities such as rice, where it became the worlds leading rice merchant under Raphael Totah. In addition, ContiChem-LPG and ContiMetals were established as well as ContiCotton, which engaged in cotton merchandising globally. By the early 1970s, more than 100 companies had been added to Continental Grain, which had expanded its operations globally in more than 50 countries. In the 1980s, Continental Grain also expanded into financial services sector by acquiring a small specialty finance and barter trading business. This business eventually transformed into ContiFinancial Corporation, a mortgage origination and asset securitization business, which later became one of the leading sub-prime mortgage companies in the United States. ContiFinancial was then taken public in 1996 on the New York Stock Exchange.
operated feed and flour mills in Central and South America, the Caribbean, and Zaire. Then, in late 1971, the company vertically expanded from the flour to the bread business with the acquisition of Oroweat Baking Company on the west coast, and Arnold Bakery on the east coast, to create a leading nationwide bread business. During this period, Continental Grain also entered the oilseeds crushing business. The company built and acquired facilities in the United States, Argentina, Brazil, Paraguay and England.
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Paul Fribourg and Don Staheli
The Board of Directors is formed (left to right): Don Staheli, Henry Kissinger, Arthur Liman, Michel Fribourg, Morton Sosland, Walter Goldschmidt, Olivier Wormser
Shortly thereafter, in the spring of 1990, Paul Fribourg assumed leadership of the consolidated World Grain, Oilseeds and Merchandising, and General Commodities group and was elected a director of the company. Paul Fribourgs career at Continental Grain began following his graduation from Amherst College in 1976, when he joined the company's Memphis, Tennessee office as a grain merchandiser. Rising in the company, Paul Fribourg had exerted his own influence by realigning its international grain and oilseeds operations to create Continental Grain's World Grain and Oilseeds Processing Group. In 1997, the senior management of Continental Grain further evolved, as Michel Fribourg became chairman emeritus, Donald Staheli became chairman of the company and Paul Fribourg was named president and chief executive officer.
Left to Right: Don Staheli, Michel and Paul Fribourg
Transforming Organizational Structure and Governance

As Michel Fribourg turned 65, and to address the growing complexities of running a worldwide business, he took two important steps. The first was the creation of an Office of the Chief Executive, comprised of himself, Donald Staheli, and Walter Goldschmidt, dividing the companys operations into five business groups financial services, world meat, world milling, transportation and natural resources, and world grain and oilseeds processing and appointing an operating head to each. The second step, following a key strategic study conducted by Ron Daniel,
Ron Daniel
McKinsey & Company Director and former Managing Partner, was the adoption by Michel Fribourg of one of McKinseys key recommendations to establish a formal Board of Directors for the company, on the condition that Ron Daniel would become its first member. Other founding board members included Morton Sosland, Arthur Liman, Henry Kissinger, James Wolfensohn, and Olivier Wormser. Donald Staheli, who had joined Allied Mills in 1969, became president and chief operating officer of Continental Grain in 1984. Four years later, Michel Fribourg retired as chief executive, and Donald Staheli became the first non-Fribourg to hold that position in the company's then 175-year history.
The company was known for its high reputation, for people who could be depended on and for a willingness to explore new areas with a great deal of ingenuity. It's a reputation that developed from generation to generation, and I'm sure it's still being carried out.
Former Senior Vice President, Government and Trade Policy, Continental Grain
BERNIE STEINWEG
Continental Grain has always been about people from feeding the world to treating employees, customers and partners with integrity and respect.
President and Chief Executive Officer, Wayne Farms LLC
ELTON MADDOX
Relationships with partners are key. They're looking for a good reputation and clear ethics. Just as important for the Fribourg family and the company is our reputation for ethics, performance and having the best people in the industry.
Senior Vice President & General Manager, ContiLatin Division, Continental Grain
BRIAN ANDERSON
MF was a man who inspired people around him. He approached me like a friend, not a subordinate.
Former Senior Vice President and General Manager, Rice Division, Continental Grain
SAL AMRAM
What makes Continental Grain different is a real focus on the whole individual. Not just what you can produce, but also how happy you and your family are and a lot of that comes from Paul.
Managing Principal, Arlon Group
BEN FISHMAN
Im very proud of having worked in the company I think these 25 years were the best years of my life. Everything that I learned from a professional point of view even a human point of view-it was a wonderful experience. I was exposed early on to big responsibilities, which was rather unusual at the time. A lot of my peers were people double my age. It was a very good opportunity to learn about all the phases of management.
Former President (CEO), Finagrain, Continental Grain
PABLO PASTEGA
The Tapestries of Michel Fribourg
Recalibrating for the 21st Century
1999
Continental Grain completes the sale of its commodity grain trading business to Cargill, Inc.and begins operating under the name ContiGroup Companies, Inc. With the sale of this business, the company turns its principal focus to meat proteins.
2005
ContiGroup and Smithfield Foods combine their cattle feed businesses in a 50/50 joint venture to create Five Rivers Ranch Cattle Feeding LLC.
2008 2007
ContiGroup completes the merger of Premium Standard Farms into Smithfield Foods. Arlon invests with Monarch Alternative Capital to assist them in the repurchase of their management company.
2000
ContiGroup sells its Animal Nutrition Division (formerly the Wayne Feeds Division) business to Hubbard Feeds, Inc.of Mankato, Minnesota.
2006
Wayne Farms opens its newest further processing facility in Decatur, Alabama (now known as Decatur West).
2009
Arlon creates Arlon Food and Agriculture Partners, jointly sponsored by Continental Grain and Rabobank, the leading food and agriculture commercial bank in the world, to invest in private equity food and agricultural opportunities in North America. Arlons public equities strategy invests in global public equities and select commodities, deploying both Continental Grain's as well as third party capital.
2008
ContiGroup reassumes the name Continental Grain Companyand announces the formation of Arlon Group, a private investment group that invests the companys permanent capital, as well as third-party capital, across multiple strategies to create long-term value.
1999-2009
RECALIBRATING FOR THE 21ST CENTURY
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With rapid technological changes, regulatory pressures and mounting financial obligations, the time had come for the Continental Grain Company to rethink its future.
Top: Breaking ground on new hog operations following PSF acquisition of Lundys. Right: Closing bell ceremony for ContiFinancial Corporation IPO.
As the company approached the year 2000, the challenges of the commodities trading business increased. Continental Grain was finding it more difficult to compete with the other major grain trading companies that had expanded much more aggressively into grain processing (soybean crushing, corn wet milling, flour milling and ethanol). Also, U.S. grain exports began to decline. The changes that had been sweeping the business were profound and permanent, especially the integration of grain trading and grain processing. Further, the rapid emergence of biotech firms and genetic engineering strengthened the link between the seed, the farmer, the merchant and the processor. This put Continental Grain, primarily a grain handler, at a significant disadvantage. We also found ourselves in a difficult financial position when ContiFinancial, the company's asset securitization business, imploded in 1998, Paul Fribourg recalls, which threatened the health of the parent
company and put us temporarily in default on our bank agreements. The grain business required enormous lines of credit to finance inventories around the world, and we were constantly at the mercy of our banks. The whole company was at risk. Continental Grain made the extraordinarily difficult decision to sell its traditional grain trading business. Everyone, including the board of directors, the management committee and Michel Fribourg, believed it was necessary for the long-term survival of the company. In 1999, Continental Grain completed the sale of its worldwide commodity marketing group (including its grain business) to Cargill, Inc., opening a new era in the companys nearly 200-year history. The sale of the grain business was a significant event in the history of Continental Grain Company, Paul Fribourg explains. Until that time, every business was owned, financed and
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guaranteed by the parent company. A catastrophic event in any single business could have brought down the entire firm. The decision was made to spin off every business as an independent entity with its own balance sheet, board of directors, and management team, thus creating a holding company at the parent level. This was an idea first conceived 25 years earlier by the late Roger Kline, a former member of the companys board, when he referred to Continental Grain as an agribusiness merchant bank. Paul Fribourg continued, The sale of the grain business was the first critical step in deleveraging and derisking Continental Grain. We could never again put the total enterprise at risk. This began a 15-year process of getting the parent company to zero net debt and having each business stand on its own. It was also the beginning of a new strategic orientation for the company in which we became more of a food, agribusiness and commodity investment company. Years later, after the company fully achieved these objectives, Roger Kline described the company as being recklessly conservative.
This transformation unlocked Continental Grains ability to invest in a wide array of food and agricultural companies in a more flexible ownership structure. The company was able to create a significant number of joint ventures, partnerships, public entities and private equity holdings as a result. The New Millennium Brings Sweeping Changes and New Opportunities Prior to the sale of the grain business, Continental Grains industrial operating businesses already represented a significant part of the company. The challenge the company now faced in having every business stand on its own was to create viable business entities that were leading
Roger Kline
competitors in their respective industries. In certain instances, the company exited businesses such as U.S. animal feed, bread and the oilseeds crushing operations. In other cases, the company merged its businesses into larger entities to create scale (for example, Continental Grains pork business). In yet other situations, Continental Grain maintained 100 percent ownership, but the business became both
financially and legally independent, such as Wayne Farms. An example of this evolution is what the company did with its pork business. Continental Grain had a modest hog farming business. In 1998, the company merged this business into Premium Standard Farms (PSF), the largest fully integrated pork producer in the industry, thereby acquiring a 51 percent stake. PSF
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Its a natural move to gradually transition from being a trading company to an investment company that can build on its past and its knowledge, to continue to operate internationally, and take advantage of the future.
JAMES WOLFENSOHN Continental Grain Board Member
expanded by purchasing smaller pork companies like The Lundy Packing Company in 2000. In 2006, PSF went public and then, in 2007, merged into Smithfield Foods, Inc., making Continental Grain the largest shareholder of Smithfield Foods with two seats on its board. Over seven years, Continental Grains pork business had gone from 100 percent ownership of a modest-sized hog farming
operation to having a significant stake in the leading integrated pork company in the U.S. Pending regulatory approval, Smithfield Foods will be acquired by Shuanghui International Holdings, Ltd., a Hong Kongbased privately held company with majority ownership of Chinas largest meat processing company.
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In 2000, Continental Grain's former poultry division became Wayne Farms LLC, a standalone business. During this decade, Wayne Farms expanded its fresh chicken business and entered the processed (cooked) chicken business by building its second state-of-the-art further processing plant in Decatur, Alabama. In 2000, Continental Grains former cattle division became ContiBeef LLC, also a
standalone business. In 2005, Continental Grain and Smithfield Foods combined their cattle feeding businesses in a 50/50 joint venture to create Five Rivers Ranch Cattle Feeding LLC, the largest and lowest-cost cattle feeding company in the United States. Continental Grain and Smithfield Foods had tried to identify and purchase a leading beef packing company to create a vertically-integrated business, but were unable to find the right opportunity. In 2008, JBS S.A. signed a definitive agreement to purchase both Five Rivers and Smithfield Beef Group, signifying Continental Grains exit from the cattle industry. the leading salmon and trout farming operation in Maine. In 1998, a processing plant was added and a leading retail branded salmon company, Ducktrap River Farms, was acquired. In 2001, this business was merged into a public Norwegian salmon company, Fjord S.A., creating one of the leading, global aquaculture companies. Continental Grain eventually sold its position as this business matured.
In aquaculture, the company teamed up in 1990 with its long-term partner, Seaboard Corporation, and built from the ground up
Its extraordinary to think about an organization that has weathered so many storms, come through so well, prospered, regrouped and prospered again.
Continental Grain Board Member
JIM MANZI
The Company has created a global investment platform focusing on agriculture and food. We also have a unique hybrid philosophy, which combines operation and investment. Our operation team and investment team work together to enhance Conti's presence on both sides. The company values my long-term development. The trust and long term local view set Conti apart from other similar foreign companies in China.
Managing Director, Continental Capital Ltd. (hired in 2011)
HANK XU
Were able to run the business with a good amount of freedom. But at the same time, theres a high degree of accountability. Its a very strong organization where I can use my experience to move things forward. I think I have a great future here.
Vice President and General Manager, Fresh Business Unit, Wayne Farms (hired in 2012)
I am particularly proud of the fact that after the earthquake in Haiti, in December 2010, which leveled our flour mill, we decided to rebuild. Our social responsibility played an important part in this decision. I think both companies are proud of the fact that we have the newest, most modern flour mill in the Caribbean, and we continue to contribute to the Haitian economy.
President and Chief Executive Officer, Seaboard Corporation
STEVE BRESKY
Continental Grain is a perfect example of a success story for a family business. Whatever they do, they always do with a vision of the business that must grow, with ethics. They see long-term investments instead of short-term financial bets.
Former Managing Director, Les Moulins d'Haiti (LMH)
CHRISTIAN FUCINA
When I wake up in the morning, what Im most excited about is coming to work with the people we have here. Weve created a team that not only works well together, but really enjoys being together. Theyre all exceptionally smart, diligent people, with a high degree of integrity.
Executive Vice President - Investments, Continental Grain
DAVID TANNER
CLINT RIVERS
The Tapestries of Michel Fribourg
Today and Tomorrow
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While the profile of Continental Grain Company has changed, so too has its potential for growth as an owner, operator and investor in the vast, multifaceted global food and agriculture industry.
Continental Grain and Arlon Today

Corporate Group Investments
Wayne Farms LLC ContiLatin Division ContiAsia Division Asset Management Group Partnership Investments Burger King Heinz Castleton Commodities Intl Overseas Shipholding Group Boa Vista
Arlon Latin America Partners Investor in middle market food and agriculture companies in Brazil and select Andean countries Continental Capital Ltd. Investor in food and agriculture businesses in China and other emerging Asian countries Arlon Capital Partners (now fully invested)
Arlon Group
Private Equity Investment Group Arlon Capital Partners
Arlon Food and Agriculture Partners Investor in middle market food and agriculture companies in the U.S.
Investor in financial services companies and other non-food and agriculture companies (Carlile Bancshares, Northeast Bancorp, Grandpoint Bank, Monarch Alternative Capital)
Public Equity Investment Group Arlon Opportunities Investors

Investor in publicly traded food and agricultural equities and select commodities futures
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Through decades of growth, changes and challenges, Continental Grain has grown to become one of the largest privately held companies in the world with diversified operations and investment activities. Building on the entrepreneurial legacy of the original grain trading business and Continental Grains extensive knowledge and networks in the world of food and agriculture, the company today is in the process of building one of the leading investment companies in this field. Being private and having long-term committed capital and flexibility in the types of ownership structures and partnerships creates a unique business model. Continental Grain today is comprised of two core groups: Corporate Group Investments and the Arlon Group.
pounds of poultry are raised in over 1,000 individual farms, and processed annually in Wayne Farms eleven facilities. From its farms to its customers kitchens, Wayne Farms chicken is sold under the banner of three brands, WAYNE FARMS, DUTCH QUALITY HOUSE, and PLATINUM HARVEST. Wayne Farms is comprised of two business units fresh and further processing.
volume and packaging are available to meet any specification.
Wayne Farms Further Processing Unit

During the past two decades, Wayne Farms not only expanded its fresh chicken business, but also its processed (cooked) chicken business by building two state-ofthe-art greenfield plants in Decatur, Alabama. Wayne Farms is a further processor of chicken meat, marketing ready-to-cook, ready-to-eat and customdesigned convenience foods. As a pioneer in further processing, the DUTCH QUALITY HOUSE poultry brand became known for innovation in a wide range of value-added products for foodservice, food manufacturing, restaurants, club and grocery stores, private label manufacturers and other prepared food marketers. In 2011, Wayne Farms established a formal board of managers, which includes three world-class independent directors. The company today is recognized as a leader in the poultry industry and as an innovative food manufacturing company with a solution-based approach to its business.
Wayne Farms Fresh Business Unit

Wayne Farms vertical integration allows control of the complete poultry product process from feed to final (raw or cooked)
Corporate Group Investments

Wayne Farms LLC
The largest wholly-owned subsidiary of Continental Grain, Wayne Farms LLC, has grown over the past 40 years to become to the fifth largest poultry producer in the United States. With a focus on quality every step of the way, more than 2.5 billion
product, assuring, strict product quality and food safety throughout the process. This includes managing complexes of feed mills, hatcheries and processing plants to ensure production of the highest quality birds, optimum food usage, formulation and conversion. Also, complex management allows for the safest and most efficient processing and packaging. Wayne Farms offers a wide range of fresh chicken cuts and packaging to meet customers needs. Whether packaged under the WAYNE FARMS fresh poultry brand or privately packaged for club stores, supermarkets and processors, quality, size,
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Relationships, first developed by Michel and continuing to this day, have spanned generations and have become the lifeblood of this company. Relationships are what this company was built on.
JERRY ROSENFELD Continental Grain Board Member
Wayne Farms customers seek its strategic business point of view along with its food expertise because its approach, and its success, revolves around their success.
ContiLatin
ContiLatin is the successor organization to ContiMilling and is comprised of Latin American and Caribbean industrial agriculture businesses, one of which Continental Grain has owned for almost 40 years. These businesses located in Paraguay, Peru, Ecuador, Venezuela and Haiti are focused on some form of processing, including oilseed crushing, flour milling, feed milling, poultry processing, as well as baking, pasta, and commodity origination and distribution. With such a wide range of industrial operations and investments in this geography, ContiLatin invested in smaller countries in the Southern Hemisphere where the company can have a larger footprint and, over time, develop close partnerships with local food industry associations and national clients. Continental Grains ownership ranges from 100 percent to less than 25 percent. In some cases, it relies on its local partners to
manage and run day-to-day operations. The willingness to craft partnerships in different forms has opened many doors over the years. This allows family-owned businesses that want to sell only a portion
of their holdings to retain an important stake. At the same time, these arrangements enable ContiLatin to provide capital and technical support to spur growth and expansion. In addition to local partners,
Capiata plant outside Asuncion, Paraguay
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the company also has had a long-standing partnership in Latin America with Seaboard Corporation, a global food, energy and transportation company.
is a major producer of consumer products in the Asuncin area. ContiParaguay is the longest held operation in ContiLatin and was purchased by Continental Grain in 1978.
Continental Grain in Haiti

For years, Haitis sole flour mill had been owned by the government, was only marginally profitable and eventually failed and was closed down. While the asset sat idle, Haiti had to import flour, losing the opportunity to produce its own flour and provide jobs for its citizens. After being abandoned for a decade, the mill needed a significant infusion of capital and professional management to make it operational and profitable, which required privatization. In October 1997, at the conclusion of protracted negotiations, the Haitian government transferred majority ownership of the inactive mill to a partnership that included Seaboard Corporation, Continental Grain and a group of local investors led by Unifinance, S.A. Fast-forward 15 years and the flour mill, Les Moulins d'Haiti, was an unqualified success, providing flour to the people of Haiti and employing 170 of its citizens. But
In a joint venture with local partners in Venezuela, for example, ContiLatin is invested in one of the top integrated poultry companies in the Maracaibo region of the country. In Ecuador, ContiLatin is a partner in the largest flour milling company (which includes consumer pasta production and commercial bread baking) as well as a partner in one of the largest independent feed manufacturers. In Peru, ContiLatin is a co-owner of the largest commodity marketing group, with a dominant share of corn and soymeal sales to third parties. It is also principal owner and operator of one of the leading integrated poultry operations. In Paraguay, ContiLatin owns and operates one of the largest and oldest crushing operations, and
Les Moulins dHaiti flour mill, located in Port-Au-Prince, Haiti
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ten minutes after Haiti's devastating earthquake in January 2010, the flour mill, like the rest of Port-au-Prince, lay in ruins. Seaboard Corporation, Continental Grain and their local partners invested millions of dollars into rebuilding and improving the mill, which reopened in December 2011. We wanted a flour milling business that would be staffed with local people to serve the community as well as international investors a business that would last for generations, explains Paul Fribourg. We could have exited and invested the insurance proceeds elsewhere. However, we were committed to Haiti and today we have a state-of-the-art facility that is expanding beyond flour milling into related areas, he adds.
feeding and husbandry business in a joint venture with Charoen Pokphand (a large Thai-based multinational), and is recognized as the leader in introducing modern agricultural practices in China. Today, through ContiAsia, Continental Grain is an operator and strategic investor in a wide range of businesses in Asia, primarily involving animal nutrition and health, genetics, meat production, processing and merchandising.
ContiAsia includes over 30 wholly-owned and joint-venture companies managed through separate business units: ContiFeed Group, Conti Chia Tai International, and Hong Wai Foods, as well as DaChan Food (Asia) Limited.
ContiAsia
Continental Grain, through its ContiAsia division, has had an active presence in Asia food and agriculture for more than three decades. In 1981, Continental Grain, based on its historic grain trading relationship with the Chinese, was granted business license Number 0001 for overseas investment in the Peoples Republic of China. The company established an animal
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Business license Number 0001 for overseas investment in China, granted in 1981
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Working with different people and cultures from all over the world is in our DNA. Were very comfortable with it. Its second nature to us. MF would be thrilled to see how the world has evolved and how the company has adapted to it.
CHARLES FRIBOURG Continental Grain Board Member and Directeur General, Arlon Group (Europe) S.A.
Asset Management Group
The Asset Management group, meanwhile, is the equivalent of an endowment for the company and the family. It is a significant pool of liquid capital managed by leading outside professionals. Core investments are in U.S. and international equities, fixed income, private equity and hedge funds.
Partnerships and Family Investments

Another vital partnership example is Continental Grains collaboration with 3G Capital (a leading Brazilian investment group) in the acquisition of Burger King in 2010 and Heinz in 2013. The relationship with the three principal owners of 3G Capital goes back over thirty years. Continental Grain is actively involved in these ventures contributing its food industry experience and participating as a board member (Burger King).
In 2012, along with other partners, Continental Grain invested in Castleton Commodities International (CCI), formerly known as Louis Dreyfus Highbridge Energy, a leading merchant energy company. Paul Fribourg has a seat on both the CCI board and executive committee, and Michael Zimmerman, Vice Chairman of Continental Grain, is also a board member. The investment marks the return, somewhat tangentially, of the company to physical commodities trading.
We are very pleased and privileged to have Continental Grain, with its unparalleled food industry experience, as our investors and partners in our recent acquisitions in the global food industry, namely Burger King and Heinz. In particular, having Paul Fribourg on the Burger King Board has been instrumental to us, and to me personally, as we work hard in improving and growing our business in a very competitive industry. The strength of Paul's relationships and contacts at the highest levels around the world do not cease to impress me and my partners at 3G.
Co-founder, Managing Partner, and Board Member, 3G Capital
ALEX BEHRING
Arlon is not like a typical private equity firm. I was impressed with their longterm aspirations and patience, and their pristine reputation. They invest in high-quality management teams and take those investments to the next level.
Founder, Kettle Cuisine
JERRY SHAFIR
What interested me is the collegial culture with a focus on people and relationships. And its a company that engages in exciting transactions, continually exploring new investment opportunities in new businesses and new places around the world.
Vice President, Legal - Continental Grain (hired in 2011)
Every single person I have met at Conti is not only a good professional, but an outstanding person. Having outstanding people is what makes Conti different from other companies I know.
Operations Manager, ContiLatin del Per (hired in 2011)
JUAN POMBO
(In talking about the Haitian earthquake) the flour mill that was destroyed was responsible for feeding a good part of Haiti. It was an important business and humanitarian asset. Theoretically, we could have taken our insurance proceeds and run. But there was never a question of that. It was a question of how quickly we can go forward and rebuild the mill, and in the meantime, what could we do to help the families of our employees who died or who were injured or dislocated.
Its not about the last 200 years; its about the next 200 years.
ALAN FISHMAN
STEPHEN VOLK
JONATHAN JACOBS
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Arlon implements a Latin American private equity strategy focusing on food and agriculture based in So Paulo, Brazil. Continental Capital Ltd. co-sponsors an investment strategy based in Beijing focusing on food and agriculture in China.
2010
Arlon Group
Arlon employs two alternative investment strategies to identify food and agriculture investment opportunities.
Arlon Capital Partners (ACP)

Arlon Capital Partners (ACP) is Continental Grains private equity arm focused today on the food and agricultural sector. Within ACP, Arlon has created a number of sectorfocused strategies that invest Continental Grains as well as third-party capital.
Holding, LP); a Mexican refrigerated foods company (Excelline Food Products, LLC); a company producing and marketing chia seeds from Australia (The Chia Company), and a large Yum Brand franchisee with Taco Bell, KFC, and Golden Corral restaurants (K-Mac Holding Corp.).
Through 3G Capital, Continental Grain participates in the acquisition of Burger King and then in 2013, of Heinz.
Arlon Food and Agriculture Partners (AFAP)

Arlon Food and Agriculture Partners (AFAP), was started in 2009 and is sponsored by Continental Grain and Rabobank, the leading commercial bank in food and agriculture, and one of the companys oldest and most important banking relationships. Today, AFAP has invested half of its $335 million of committed capital into six portfolio companies. They include the largest organic branded sugar and sweetener company in the U.S. (Wholesome Sweeteners); a leading soup company (Kettle Cuisine); a fresh prepared foods business (HMR Foods
CONTINENTAL GRAIN CONTINUES FORWARD
2012
Continental Grain becomes part of an investment group acquiring Louis Dreyfus Highbridge Energy, which is rebranded Castleton Commodities International LLC.
2013
Continental Grain turns 200.
2010-
100
TODAY AND TOMORROW
101
Paul Fribourg and Yuan Zhan Guo establish new Rmb fund partnership in China.
Arlon Latin America Partners (ALAP)

Building on its success with AFAP, Arlon recently implemented a Latin American private equity strategy, Arlon Latin America Partners based in So Paulo, Brazil. The company believes that Arlon can capitalize on its deep food and agriculture expertise and local industry contacts in a growing market and take advantage of the numerous opportunities in Latin America to create value-added partnerships with strong management teams.
value-added view on its investments and targets emerging, high-growth food and agribusiness firms in China and select developing Southeast Asian countries. Continental Capital Ltd. capitalizes on Continental Grains early entry into China in 1981 and its leadership in introducing modern agricultural practices in China. Continental Grain and Continental Capital operate today as a complementary hybrid operating/investment company. The operating team grows its businesses both organically and by pursuing strategic relationships in animal protein-based businesses in China. Simultaneously, the investment team, with the involvement of the operating team, invests alongside management teams of food and agribusiness companies and supports their growth by leveraging Continental Grains and Arlons global food and agribusiness expertise, network and investment skill set.
China is a major demand center for food and agriculture as a result of the countrys large population and growing middle class. Asian countries are looking for best practices to improve domestic production of food and agriculture by increasing crop and livestock production, and implementing better food safety and security practices. Continental Capital Ltd. believes these improvements and innovations and the continued demand for agricultural products will create numerous investment opportunities.
Since then, the Monarch funds have outperformed most of their peers and the firm has grown to over $5 billion of assets under management.
Arlon Opportunities Investors (AOI)

Arlons second investment strategy, Arlon Opportunities Investors, invests in public equities and related commodities in the food and agriculture industry. Through Arlons two strategies, the company is able to seek new global growth opportunities across the entire food and agriculture supply chain, tapping into the many worldwide relationships Continental Grain has forged over the decades and working closely with both old and new investment partners. The company believes that Continental Grains history, networks and partnershiporientation help to position Arlon to identify and invest in the best ideas available in the food and agriculture space. Arlon has approximately $750 million in assets under management and is headquartered in New York, with a presence in So Paulo, Brazil, and in Beijing, Shanghai and Hong Kong, China through its affiliate, Continental Capital Ltd.
Arlon Capital Partners (now fully invested)

Between 2008 and 2010, ACP also participated in three regional, commercial banking company investments (Carlile Bancshares in Texas, Northeast Bancorp in New England, and Grandpoint Bank in California). Additionally, when the principals of Monarch Alternative Capital, a distressed debt investment firm, sought an investor to help them repurchase a stake in their management company, Arlon was a logical partner. This was based on ACPs willingness to invest in a non-traditional deal structure, its long-standing relationship with the Monarch team, and knowledge of their investment expertise.
Continental Capital Ltd.

Recently, the China-based subsidiary of Continental Grain, Continental Capital Ltd., co-sponsored a third investment strategy based in Beijing, focusing on food and agriculture in China and other areas of Asia. Continental Capital Ltd. makes direct investments in private companies throughout Asia, with a focus on China. Continental Capital takes a long-term,
102
Continuing the Legacy of Continental Grain Company

Continental Grain has come a long way in 200 years from a small European grain trading business to an active, global food, agribusiness and commodities investment company. The company has achieved a unique balance between long-term family ownership, professional management, meritocracy giving capable people the chance to build unique businesses and a governance structure of wise people who care deeply about the company and its
future. If we can keep these elements in a healthy balance, we have a great chance to keep the legacy of Continental Grain alive for many years to come. Future generations will face new challenges and opportunities. They, too, will have to constantly reinvent the company. The entrepreneurial and pioneering spirit that comes from the companys grain trading legacy should serve them well in the next 200 years. In the words of Steve Jobs, they will need to stay hungry and stay foolish.
We thank all of you who have played a role in bringing us to where we are today. Its been a great team effort, a great journey and our future success is due in large part to your loyalty, dedication and efforts. Paul Fribourg on behalf of Continental Grain Company

Continental Grain 200th Anniversary Book

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Continental Grain 200th Anniversary Book

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200

200 Years of Global Partnerships

IN MEMORY OF MICHEL FRIBOURG

A MESSAGE FROM CHAIRMAN AND CEO PAUL FRIBOURG

A MESSAGE FROM CHAIRMAN AND CEO PAUL FRIBOURG

THE FRIBOURG FAMILY LEGACY

THE FRIBOURG FAMILY LEGACY

Michel Fribourg, his sisters, and a friend in France, circa 1923.

Simon Fribourg circa 1850.

THE FRIBOURG FAMILY LEGACY

Paul and Charlie Fribourg

THE FRIBOURG FAMILY LEGACY

THE FRIBOURG FAMILY LEGACY

PROFILE OF MICHEL FRIBOURG

PROFILE of MICHEL FRIBOURG

PROFILE OF MICHEL FRIBOURG

Mary Ann and Michel Fribourg in their Manhattan townhouse.

AN OVERVIEW OF THE GRAIN INDUSTRY

AN OVERVIEW OF THE GRAIN INDUSTRY

AN OVERVIEW OF THE GRAIN INDUSTRY

Managing Principal, Arlon Group

Former Senior Managing Director, International Finance, Continental Grain

Former Board Member and Senior Vice President, Continental Grain

The Paintings and Tapestries of Michel Fribourg

The Foundation Years

THE FOUNDATION YEARS

Arlon, circa 1890

THE FOUNDATION YEARS

Chairman and Chief Executive Officer, Unibank S.A.

Former President and General Manager, Finagrain, Continental Grain

The Paintings of Michel Fribourg

Global Expansion in the 20th Century

GLOBAL EXPANSION IN THE 20TH CENTURY

Opening International Offices

GLOBAL EXPANSION IN THE 20TH CENTURY

Chicago Board of Trade.

Establishing a U.S.-Based Business

GLOBAL EXPANSION IN THE 20TH CENTURY

New York City

Company Headquarters Moves to the United States

GLOBAL EXPANSION IN THE 20TH CENTURY

Board Member Henry Kissingers Perspective

GLOBAL EXPANSION IN THE 20TH CENTURY

Two Historic Grain Deals with Russia

GLOBAL EXPANSION IN THE 20TH CENTURY

orientation and patriotic sense of country.

GLOBAL EXPANSION IN THE 20TH CENTURY

Grain Trading Expansion

GLOBAL EXPANSION IN THE 20TH CENTURY

Diversifying from Grain Trading to AgriIndustries and Financial Services

GLOBAL EXPANSION IN THE 20TH CENTURY

GLOBAL EXPANSION IN THE 20TH CENTURY

Paul Fribourg and Don Staheli

Transforming Organizational Structure and Governance

Managing Principal, Arlon Group

Former President (CEO), Finagrain, Continental Grain

The Tapestries of Michel Fribourg

Recalibrating for the 21st Century

RECALIBRATING FOR THE 21ST CENTURY

RECALIBRATING FOR THE 21ST CENTURY

RECALIBRATING FOR THE 21ST CENTURY

RECALIBRATING FOR THE 21ST CENTURY

Managing Director, Continental Capital Ltd. (hired in 2011)

President and Chief Executive Officer, Seaboard Corporation