Allenberg Cotton Co., a division of the Louis Dreyfus Corporation, Dunavant Enterprises, Cargill's Hohenberg division and Plains Cotton Cooperative today announced they have signed a letter of intent to pursue a neutral Internet business-to-business (B2B) marketplace for cotton and cotton-related products and services. 

Officials said they hope to create a comprehensive, independent electronic exchange for prospective suppliers of, and customers for, cotton and its products and supplies.

To be designed by and for the cotton industry, the marketplace would give buyers and sellers of products and services a single, convenient place to connect, conduct and facilitate transactions and better manage their supply chains. It would serve organizations of all sizes from every facet of
the industry and would significantly expand the scope of Plains Cotton's existing electronic marketing system, currently known as Telcot®.

The parties expect that this cotton marketplace would be operated as an independent company, most likely based in Memphis. As contemplated, the four initial investors would each own an equal share, with their ownership percentages declining as additional strategic partners are
included. 

"We think this will act as a catalyst for positive change in the industry," said Van May, Plains' president and CEO. "Our 25-year commitment to the electronic marketplace has clearly demonstrated the many efficiencies and advantages of electronic trading. This new marketplace will expand the electronic services available to all cotton growers, the rest of the industry and the customer base to which those services will be offered. It's a major milestone." 

"The multi-billion-dollar cotton industry has some inefficiencies that make it ideally suited to benefit from a B2B marketplace," said W. B. Dunavant, Jr., chairman, Dunavant Enterprises. "It is marked by fragmentation among producers, merchants and manufacturers who must deal with incompatible, labor-intensive logistical systems. In many areas cotton transactions still involve multiple, redundant faxes and phone communications. An online marketplace offers great potential to allow manufacturers and merchants to more effectively purchase and sell cotton and to expose producers to a far broader range of buyers and services." 


About Cargill and Hohenberg 
Hohenberg is the cotton merchandising division of Cargill, headquartered in Minneapolis, Minn. Cargill, Inc., is an international marketer, processor and distributor of agricultural, food, financial and industrial products and services, with some 82,000 employees in 59 countries. 

About Louis Dreyfus and Allenberg 
Allenberg Cotton Co., located in Cordova, Tennessee, is the cotton-merchandising division of the Louis Dreyfus Corporation. Louis Dreyfus is a worldwide merchant and processor of various agricultural and energy products, with offices in over 30 countries. 

About Dunavant  
Privately owned Dunavant Enterprises, Inc. of Memphis, is an integrated global cotton merchandising, ginning and warehousing company. From real estate developments to a vast global investment network, Dunavant continually develops diversified investment relationships
that respond to both short- and long-term opportunities. 

About Plains Cotton Cooperative Association
Plains Cotton Cooperative Association (PCCA) is a farmer-owned, cotton marketing cooperative headquartered in Lubbock, Texas. Founded in 1953, PCCA serves its 28,000 member-owners throughout Texas, Oklahoma and Kansas. 

Company news release
N2694