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00:00ROBERT FROST, THAT IS A BEAUTIFUL THING. HE ENDED UP IN A SMALL SHOP IN MINNESOTA WHERE HE IS CHAIRMAN AND CHIEF EXECUTIVE OFFERS HER. YOU ARE -- OFFICER. YOU ARE A CRUCIBLE OF THIS DEBATE ON TRADE AND AGRICULTURE. WHAT DOES THE MEDIA MOST GET WRONG IN OUR STUDY OF MIDWEST AGRICULTURE AND PRESIDENT TRUMP? DAVID: IN TERMS OF AGRICULTURE, THEY ARE THE CONSEQUENCES OF THIS TRADE WAR. EVEN IF WE WENT BACK TO NORMAL, WHAT HAS HAPPENED IN CHINA IN TERMS OF PROTEIN AND CONSUMPTION -- AND SOURCING. TOM: WHAT IS THE PRESIDENT MOST NAIVE ABOUT? IF YOU WERE TO HAVE A COUPLE OF COPY WITH PRESIDENT TRUMP, WHAT WOULD YOU SAY TO HIM ABOUT THE SUPPLIERS -- A CUP OF COFFEE WITH PRESIDENT TRUMP, WHAT WOULD YOU SAY TO HIM ABOUT THE SUPPLIERS? DAVID: I HAVE NOT BEEN INVITED. TOM: THAT IS PROBLEMATIC. DAVID: THERE ARE SUPPLIERS AND WHETHER THEY COME FROM NORTH AMERICA OR SOUTH AMERICA, WE WANT TO PROTECT FARMERS AND PRICES ARE LOW AND SUPPLIES ARE PLENTIFUL. THIS IS NOT A GOOD MOMENT LONG-TERM FOR THE ECONOMY IN AMERICA. JON: LET ' S GET AN IDEA OF WHAT IT LOOKS LIKE THROUGH THE WINDOW YOU LOOK THROUGH. WHAT IS IT LIKE IN CHINA, A LOT OF PEOPLE GRAPPLING WITH THE PICTURE IN CHINA? DAVID: DEMAND FOR EVERYTHING OR FOR SO BEEN ' S? JON: -- FOR SOYBEANS? JON: FOR SOYBEANS. ARE YOU SEEING THE TRAFFIC? DAVID: WE ARE SENDING TO CHINA BUT IT IS NOT ANYWHERE NEAR THE VOLUMES THEY WERE BEFORE. THEY ARE BEING SUPPLEMENTED WITH SOUTH AMERICAN BEANS. THERE WERE 30 MILLION METRIC TONS GOING INTO CHINA. WE ARE NOT BACK TO THOSE. JON: CAN YOU DRAW A DISTINCTION BETWEEN THE DOMESTIC SLOWDOWN IN CHINA AND THE TENSION BETWEEN CHINA AND THE UNITED STATES? DAVID: THE HIT FROM THE TRADE WARS IS MORE DRAMATIC. WE WENT FROM 30 MILLION METRIC TONS TO ZERO. WHEN YOU THINK ABOUT A SOFTENING ECONOMY, PEOPLE STILL WANT TO EAT PROTEIN. TOM: BREAKING NEWS FROM VICE PRESIDENT PENCE. THIS IS IMPORTANT, LOOKING SOUTH. VICE PRESIDENT PENCE URGING VENEZUELA TO RALLY ROUND THE OPPOSITION LEADER WITHIN ALL THE UNREST. IF YOU ' RE JOINING US, DAVID MACCLENNAN WITH US. I KNOW IS GOING TO BE -29 ON THURSDAY. I ' M GOING TO MOVE OUT OF MINNESOTA. YOU HAVE BEEN THE 15TH LARGEST COMPANY IN AMERICA. GIVE US A STATISTIC THAT SHOWS THE REACH OF CARGO. ILL. HOW MANY FREIGHT CARS DO YOU HAVE? DAVID: ANY GIVEN DAY, YOU HAVE CONSUME SOMETHING, EITHER LIQUID OR SOLID, THAT CARGILL HAS PLAYED A ROLE IN THE SUPPLY CHAIN? TOM: YOU MEAN LIKE MY NEW DIET? DAVID: WHAT DID YOU HAVE TODAY? JON: HE ATE A CROISSANT. DAVID: WE HAVE A FLOUR MILL. TOM: WE HAVE A BIG DAIRY FEET -- WE HAVE A BIG DAIRY FEED BUSINESS. JON: WHY ARE YOU PRIVATE? DAVID: WE LIKE THE LONG-TERM VIEW THAT A PRIVATE COMPANY CAN MAKE. WE HAVE SEVEN GENERATIONS OF FAMILY MEMBERS. FOR THEM, IT IS PERSONAL. THEY ARE PROUD OF THEIR COMPANY. I LOVE BEING PRIVATELY OWNED. TOM: YOU ARE PREACHING TO THE CONVERTED. DAVID: I WOULD HAVE THOUGHT SO. JON: ANY CONVERSATIONS ABOUT LISTING? DAVID: NO. JON: NOTHING IN THE FUTURE? DAVID: NO. TOM: LET ME CHANGE THE GEAR. ON CHINA, YOU SEND SOYBEANS. WHAT IS THE LOGISTICS? IF WE SPEAK TO AN ECONOMIST, HE ALWAYS CIRCLES BACK TO AMERICANS UNDERESTIMATE LOGISTICS OF MOVING STUFF. GIVE US AN EXAMPLE. DAVID: THE BEANS LEAVE THE FIELD AND THEY MIGHT GO ON A TRUCK TO GET TO A TRAIN. THEY MIGHT GO TO THE RIVER WHICH GOES TO THE OCEAN. IT GETS LOADED ON A BIG FREIGHTER. TOM: HOW IS THE INFRASTRUCTURE? DAVID: IN THE U.S., IT NEEDS IMPROVEMENT. I TESTIFIED BEFORE A HOUSE COMMITTEE SAYING WE NEEDED THIS INFRASTRUCTURE BUIL T THAT A LOT OF POLITICIANS HAVE BEEN TALKING ABOUT TO HELP FOOD -- HELP MOVE FOOD OUT OF THE COUNTRY. JON: LABOR, WHAT DOES THAT LOOK LIKE NOW? DAVID: IT IS GETTING TIGHTER. IT IS GETTING HARDER WITH CHANGES IN IMMIGRATION POLICY BUT THE TIGHTNESS OF THE MARKET. TOM: WE TALKED TO MARRIOTT, FRONT AND CENTER IN THIS IMMIGRATION. GIVE US A VIGNETTE OF THE IMMIGRATION REALITIES. DAVID: NUMBER ONE IS IT IS A THOROUGH PROCESS TO MAKE SURE ANYBODY YOU HIRE IS HERE LEGALLY. YOU COULD ARGUE THAT IF PEOPLE ARE NOT COMING IN ILLEGALLY IT IS NOT IMPACTING THE LABOR BASE. WESTERN KANSAS, THE MARKETS ARE TIGHT AND TURNOVER IS HIGH. JON: SOME PEOPLE TURN AROUND AND SAY RAISE THE WAGES AND THEY WILL COME. IS IT AS SIMPLE AS THAT? DAVID: I DO NOT THINK SO. TURNOVER IS HIGH, IT IS A RAPID PROCESS OF HIRING AND TRAINING AND HIRING AGAIN. JON: ARE YOU HOPEFUL WE CAN HAVE SOME BIPARTISAN EFFORT IN WASHINGTON, D.C. TO ADDRESS THESE ISSUES? DAVID: I AM. I HAVE TO BE HOPEFUL. I DO NOT WANT TO BECOME DESPOND IN, WHICH WOULD BE EASY TO DO. TOM: LET ' S REVIEW THIS. WE HAVE GOT A REPUBLICAN PARTY ESSENTIALLY FRACTURED, A PRESIDENT WHO IS GOING TO GO AT IT AGAIN. MINNESOTA, YOU REPRESENT THE FABRIC OF THESE FAMILIES. HOW DOES THE DEMOCRATIC PARTY RESET OUT OF CLINTON AND OBAMA? DAVID: THAT IS A GOOD QUESTION. MINNESOTA HAS BEEN BLUE SINCE THE EISENHOWER ELECTION. MINNESOTA HAS BEEN BIFURCATED. YOU HAVE GOT THE SOUTHERN HALF FOR YOU HAVE THE TWIN CITIES WHICH IS STILL BLUE. YOU ' VE GOT THE NORTHERN HALF WHERE THEY DO MINING WHICH IS RED. IT IS A METAPHOR FOR THE REST OF THE COUNTRY. TOM: THIS HAS BEEN WONDERFUL. DAVID: THANKS FOR HAVING ME.

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Cargill CEO Says 'Not a Good Moment' for Agriculture Economy

Dave MacLennan, chairman and chief executive officer at Cargill, discusses U.S. farmers and China's food consumption patterns amid the U.S.-China trade dispute and why the company remains private. He speaks at the World Economic Forum's annual meeting in Davos, Switzerland, on "Bloomberg Surveillance." (Source: Bloomberg)

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