Mayo Schmidt’s experience as a Miami Dolphin may serve him well as he develops a game plan to tackle Saskatchewan Wheat Pool’s financial problems.
Schmidt was named chief executive officer of the grain company Jan. 12 and officially began his new job Jan. 18.
The former head of ConAgra Grain Canada told reporters the pool is at a critical crossroads. He pledged to “reconstruct our producer relationships, our investors’ confidence and the morale and work ethic of our employees.
“It’s not foreign to me to tackle challenges,” he said. “We’re going through very significant changes… . It’s important to me to participate in that evolution.”
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The most immediate challenge is to put the pool’s fiscal house in order. The company has been in the red for more than a year, most recently posting a $14.5-million first-quarter loss.
Schmidt said he will review all the pool’s business segments and investments to measure their strategic fit within the corporation.
“There’s no question that there’s a need for a strong look at cost containment, balancing the wants versus the needs,” he said.
Hugh Wagner, secretary manager of the Grain Services Union, which represents pool employees, said he would not pre-judge what Schmidt may do, but he said his point is valid.
“Clearly there are things that have to be fixed,” Wagner said.
The union would be concerned if Schmidt follows the pattern of laying off employees, eliminating jobs and reducing service.
“That approach has been a disaster wherever it’s been tried,” he said.
Tough slogging
In Toronto, David Schroeder, of Dominion Bond Rating Service, said Schmidt has his work cut out for him.
“He has to get the elevator rationalization program done, and quickly,” Schroeder said.
Project Horizon, the pool’s concrete elevator expansion program, is nearly completed, he said, yet only one-third of the planned closures of older elevators have occurred. Schroeder said those costs have to be taken out of the system to give the company more flexibility.
Pool president Leroy Larsen said Schmidt’s experience in the American and Canadian grain industries made him the best candidate for the top job.
Schmidt grew up on a Kansas farm, earned a business administration degree and gained experience at Farmland Industries, Ashland Co-op and the Kansas State Treasury, in addition to a year in the National Football League.
From 1983 to 1995, Schmidt held a number of positions at General Mills, including senior manager of operations, transportation and trading.
Schmidt was based in Winnipeg from 1995 to 1999, as head of ConAgra’s Canadian operations. He then spent five months as executive vice-president of domestic and international operations for ConAgra Inc.’s KBC Trading and Processing Co. in California.
“There was concern about bringing in an American,” Larsen said, but Schmidt’s experience overshadowed that worry.
“I’m pleased with comments from other industry officials. They seem to hold him in high regard. He has hit the ground running and I’m confident that we’ve got a good guy here.”
