The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership The American Agricultural Dealer
A Revenda Agrícola nos EUA
A Syngenta/Purdue University Partnership
Presented To:
ECOA
San Francisco, California
September 10, 2015
Apresentado por:
Dave Downey
Purdue University
West Lafayette, Indiana, USA
We’ve Come A Long Way
In American Agriculture
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
1
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership This Is Just The Beginning!
THE Question Is....
How Are Ag Retailers Adapting
To This Rapidly Changing Market?
Overview
Visão Geral
•Major Trends impacting USA
Agricultura dos EUA
Agriculture
•Trends in USA Agronomy Inputs
• Tendências no setor de Insumos Agrícolas nos EUA
Sector
•Challenges for USA Ag Dealers
September 10, 20115
• Maiores tendências impactando a •Desafios para a Revenda nos EUA
Dr. Dave Downey
Center for Food and Agricultural Business
2
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership Part I
Our Changing Agricultural Marketplace
Our World Is Changing Rapidly
Population is exploding
and many have money to buy food,
live healthier lives....live longer
....and eat more!
More companies will chase these opportunities
And make large investments to capture those dollars
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
3
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership 2014 Real Economic Growth Rates Projections %,
(IMF)
Brazil
10
Projected 2014 Growth Rate 2%
9
7.7
8
Percent
7
5.9
6
6.3
5
4
3.3
2.7
3
2
1
0.9
3.2
3.7
3.8
2.2
1.2
0
Euro
Area
U.S. Canada Japan Russia Mexico Mid World Africa
east
India
China
All That Demand Means….
Good things
for farmers ….
and Ag Retailers
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
4
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership World Harvested ACRES 13 Major Crops Total: (Millions)
2,400
2013/14=
2,288
2,300
1981/82=
2,115
2,200
2005/06=
2,141
1996/07=
2,104
Million
2,100
2,000
2002/03=
2,033
1972/73=
1,872
1,900
147 Million acres added in last 8 years (7%)
1,800
Plus Increased Productivity per Acre
1,700
1,600
Record High Crop Prices
and Record High US Net Farm Income
140
120
118.0
Records set last 4‐5 years
100
120.6
113.8
96.9
Billion $
92.7
80
10 Year Average = $81B
60
40
20
0
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
5
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership US Net Farm Income
Projected
140
120
118.0
Records set last 4‐5 years
100
120.6
113.8
96.9
Billion $
92.7
10 Year Average = $81B
80
?
60
40
But we are still above “normal”
20
While the long term outlook is strong,
0
North American farmers are now experiencing difficult times
The Wealth Effect
When Farmers have a lot of money
they get ‘used to’ having lots of money
and the spend a lot
But when their income falls
they pull back quickly
and become a lot more cautious
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
6
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership Surplus Crops Cause Lower Prices
• Slower growth... some retraction/adjustment
• More demanding/difficult customers
• More comparison shopping
• More negotiation of prices and services
• Higher expectations
• Longer decision process
• Cutting back where they think they can
• Harder to adopt/try unproven ideas
Agriculture Is Changing Fast
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
7
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership Agriculture Is Changing…..and Fast
•Advances in crop protection and genetics
•Farm equipment technology
•Industrialization of agriculture
•Supply chain coordination
•Availability of water, energy, labor
•Focus on Sustainable Agriculture and food safety
•World wide government trade policy and regulation
Increased Productivity of Agriculture
Technology Enables Us.....
• To Grow More.....With Less
• To Gain Productivity Increases
• Utilize Sustainable Agriculture Practices
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
8
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership Farmers Must Be Proud
Of What They Have Accomplished!!
Productivity
of Farmers dramatically!
Every US farmer now
155
produces enough
to feed nearly 150 people
Yields Up Substantially in 30 Years http://www.nass.usda.gov/Charts_and_Maps/index.asp
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
9
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership SUSTAINABLITY
Has Become
A Critical Issue
Pressures For Sustainable Agriculture
Strong and growing pressure
from global food companies
to prove our production
uses sustainable methods
•
•
•
•
•
•
September 10, 20115
McDonalds
Unilever
PepsiCo
Walmart
Consumers
Government regulations
Dr. Dave Downey
Center for Food and Agricultural Business
10
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership Hypoxia Zone In Gulf of Mexico
Creating Big Problems for Farmers
New Water Quality Issues
in the USA Great Lakes
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
11
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership Environmental and Safety Concerns
Are Becoming Critical To Farmers
And Ag Retailers
Government regulations on:
• Crop protection chemicals
• Leaching of nitrogen and water quality
• Spray drift
• Air contamination
• Food safety
• Worker safety
The Fertilizer Institute’s 4 R’s Program
The Fertilizer Institute (TFI)
has created a very successful program
focused on Nutrient Stewardship called the “4R’s”
• Right Fertilizer
• Right Rate
• Right Time
• Right Placement
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
12
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership Agricultural Retailers Association
has created “ResponsibleAg Program”
Purpose: To Assist Ag Retailers to comply with
Health, Safety, and Security rules
regarding safe handling and storage
of fertilizer products
Includes:
• Independent ‘Audit’ of each facility
• Supplement for crop protection chemicals
Certification:
Facility becomes ‘Certified’
when all elements are passed
Farm Input Supply Industry
has multiple initiatives that impact our industry
Purpose: To encourage research and development
of activity that will contribute
to more efficient and profitable food production
throughout the world....
and do so in ways that are sustainable
and environmentally friendly.
• Team of Syngenta Specialist focused on Environmental Issues
• Long term Integrated Pest Management studies
• Voluntary Monitoring Program
• Long term watershed projects to improve water quality
• Trees Forever Project
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
13
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership Rapid Farm Consolidation in USA
Rápida Consolidação da Fazenda nos EUA
USA
“Corn/Soybean Belt”
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
14
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership Acres Controlled By Size Class
(in thousands of acres)
Variação do Tamanho da Fazenda Conforme
seu Porte
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
<180 A
1987
180-
500-
1,000-
500 A
1,000 A
2,000 A
1997
2002
1992
>2,000 A
2007
Midwestern USA EUA centroeste
Source: Dr. Michael Boehlje, Purdue University, USDA Data
800‐2000 hectares
Number of Farms, 2,000-4,999 ac, and Harvested Acres per Farm
Indiana, Illinois, Iowa, and Minnesota combined
Source: USDA 2012 Census of Agriculture
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
15
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership >2000 hectares
Number of Farms, > 5,000 ac, and Harvested Acres per Farm
Indiana, Illinois, Iowa, and Minnesota combined
Source: USDA 2012 Census of Agriculture
200 ‐ 400 hectares
Percent of Total Harvested Cropland, Farms 500-999 ac
Indiana, Illinois, Iowa, and Minnesota combined
Source: USDA 2012 Census of Agriculture
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
16
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership 400‐800 hectares
Percent of Total Harvested Cropland, Farms 1,000-1,999 ac
Indiana, Illinois, Iowa, and Minnesota combined
Source: USDA 2012 Census of Agriculture
800 ‐ 2000 hectares
Percent of Total Harvested Cropland, Farms 2,000-4,999 ac
Indiana, Illinois, Iowa, and Minnesota combined
Source: USDA 2012 Census of Agriculture
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
17
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership > 1000 hectares
Percent of Total Harvested Cropland, Farms >5,000 ac
Indiana, Illinois, Iowa, and Minnesota combined
Source: USDA 2012 Census of Agriculture
What does our data show
about famers’ growth expectations
going forward?
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
18
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership The Number of Acres Expected
In Different Size Classes In Next Five Years
Size Category
Farms
In sample
Total Acres
Farmed Today
Total Acres Farmed
In 5 Years % Change
<400 ha
476
103,803
92,876
‐11%
400 – 800 ha
338
108,428 102,244 ‐6%
800 – 1,200 ha
144
79,974 87,908 14%
1,200 – 1,600 ha 70
53,319 65,5881 23%
1,600 – 2,000 ha
38
37,896 50,863 34%
>2,000 ha
62
114,100 198,315 75%
While the smaller segments aren’t going away, it’s clear where the growth is expected! % Acres Controlled By Farm Size Class 2017
Concentração de Área e Número de propriedades
2017
100%
50% da área
será controlada por
6% dos produtores
90%
80%
68%
70%
60%
50%
40%
30%
20%
18% 18%
14%
7%
10%
28%
22%
18%
4%
2%
0%
<180 A
180-
500-
1,000-
>2,000 A
500 A
1,000 A
2,000 A
Total Acres: 167,419,543
Total Farms: 612,464
Midwestern USA EUA centroeste
Source: Dr. Michael Boehlje, Purdue University, USDA Data
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
19
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership USA
“Corn/Soybean Belt”
50% da área
será controlada por
6% dos produtores
Will This Trend Continue?
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
20
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership Absolutely…. YES!
(It’s Purely A Matter of Economics)
Many Believe Consolidation Will Speed Up
• In good times, top farmers prepare for their future
• Top up power equipment – Precision Ag
• Grain storage and handling facilities
• Invested in technology and employees
• Better information systems and organization
• Many are now set to take advantage of others
who are unprepared, sloppy, and poor managers
• And older farmers who stayed around
to take advantage of a lifetime opportunity
and continued to enjoy the ‘good times’ but now
will think about exiting when things tighten
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
21
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership Commercial Farms Have Major Advantages
• Efficiency in logistics and operations
• Ability to collect and utilize information
• Ability to hire and utilize specialists
• Ability to quantify value
• Marginal gains in yield or cost reduction
translate into ‘big dollars’
• Ability to negotiate better input prices and service
• Ability to gain favorable marketing contracts
• Application of professional management practices
• Professionalize and manage landlord relationships
Commercial Operations
Have Different Needs
Critical Issues
For Larger Farmers
• Scale: •
•
•
•
•
Efficiency
Technology
Information
Control
Negotiation
• Tailored Value
• Accurate Information
• Timeliness
• Consistency
• Logistics – Bottlenecks; Time
• Managing Risk and Volatility
• Landlord Relations
• “Value” – Rather than cost
September 10, 20115
Critical Elements In Supplier Relationships
• Dependability
• Business Savvy
• Professionalism
• “Trusted Advisor”
Dr. Dave Downey
Center for Food and Agricultural Business
22
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership Convergence of Technologies
Risk Management
Big
Data
Precision
Farming
We have reached the ‘Tipping Point!’
The Majority of Crop Production
Is Now Controlled
By ‘Commercial’ and ‘Large’ Farmers
The Best Are Poised To Grow Even More
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
23
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership This Is A New Era ....
It Takes A New Approach
From thinking of farmers as “Consumers”
With Business--To--Consumer (B2C) Marketing
To thinking of famers as “Businesses”
With Business–To–Business (B2B) Marketing
Business To Business Relationships
Are Much More Complex
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
24
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership Business To Business Marketing…
•
•
•
•
•
•
Requires a team approach to sell and service
Multiple contacts…often with multiple people
Complex purchase decisions….and influencers
Business relationship + personal relationships
Value comes from complex changing technologies
Value comes from many intangible sources
that are difficult to quantify
Part II Trends in USA Ag Inputs Distribution
Parte II Tendências na Distribuição de
Insumos nos EUA
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
25
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership Demographics Of Ag Retail Distribution
Demografia das Revendas Americanas
• Ownership structure
• National/Regional
• Estrutura de Propriedade
• Nacional/Unidades
Regionais
corporate locations
• Cooperativas
Coops
• Independentes
•
• Independents
Ag Retailer Product Lines
Linhas de Produtos - Revendas
• Quatro áreas principais
• Four basic areas
• Fertilizantes
•Fertilizer (54%)
• Defensivos
•Crop Protection ( 30%)
•Seed (11%)
• Sementes
•Agronomy Services (5%)
• Serviços Agronômicos
• Sometimes…especially Coops • Algumas Vezes…cooperativas
•Grain collection
• Captação de Grãos
•Energy (Petro)
• Energia (Petro)
•Animal Feed and Heath
• Nutrição e saúde animal
•Other farm supplies
• Outros produtos agrícolas
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
26
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership Ag Retail Product Mix
Mix de Produtos das Revenda
Mix de Produtos
Product mix Varia muito
varies greatly geographically and among firms geograficamente e entre empresas
Services income important • Delivery
• Custom application services
• Agronomy information
• Full season field checks
Receita com Serviços é Importante
• Entregas
• Serviços de aplicação
• Informações Agronômicas
• Acompanhamento durante todo
ciclo das culturas
Demographics of USA/Canada Ag Retail
Demografia das Revendas Americanas
2013
2013
•Estimate 4000? Dealers
• Cerca de 4.000 Revendas
•Estimate 7,000? Locations
• Cerca de 10.000 unidades
Largest Ag Retailers….
Maiores Revendas….
•Agrium Retail – 707 locations • Agrium Retail – 707 unidades
•GROWMARK – 665 locations
• GROWMARK – 665 unidades
•Helena – 341 locations
• Helena – 341 unidades
•Wilbur Ellis – 156 locations
• Wilbur Ellis – 156 unidades
•CHS – Coop –286 Locations
• CHS – 286 unidades
•Simplot – 90 locations
• Simplot – 90 unidades
(All with over $1 Billion US$)
(Todas faturam mais de US$ 1 Bilhão)
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
27
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership Consolidation of Dealerships and Locations
Consolidação das Revendas e Unidades
Major Trends In USA Ag Retail
Tendências - Revendas nos EUA
Consolidation Through
– Mergers Acquisitions
Consolidação
– Fusões e Aquisições
•Rapid consolidation of Ag Retail • Rápida consolidação
nos últimos 7 anos……
In last 7 years……
•Est 6,000
•Est 10,000
September 10, 20115
4000 Dealers
• Cerca 6.000 4.000 Revendas
7,000 Locations
• Cerca 10.000 7.000 unidades
Dr. Dave Downey
Center for Food and Agricultural Business
28
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership Differences Between Dealers
in USA and Brazil
Diferenças entre das Revendas nos EUA e Brasil
USA Dealers Revendas nos EUA
• National and regional dealers • Revendas nacionais e regionais
• Much more focus on fertilizer • Maior foco em fertilzantes
• Crédito não é tão importante
• Credit is not so important
• Não usa processo de troca
• Barter is nonexistent
• Application services important • Serviços de aplicação são importante
• Dealers own much equipment • Revendas possuem equipamentos
• Precision Ag services important • Agricultura de precisão é relevante
• Variable rate application
• Taxa de uso variável
• GPS and auto steer tractors • GPS e tratores auto guiados
• Regulatory compliance
• Conformidade regulatória
assistance for farmers
Assistência aos produtores
USA Basic Farm Input Distribution System
Sistema de Distribuição de Insumos nos EUA
Basic Supplier Fornecedores
Distributor
Atacado de Insumos
Dealer
Revendas
Farmer
Produtores
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
29
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership USA Basic Farm Input Distribution System
Sistema de Distribuição de Insumo nos EUA
Basic Supplier But it is not so simple today!
Fornecedores
Mas não é tão simples assim hoje!
Distributor
Atacado de Insumos
Dealer
Revendas
Farmer
Produtores
Structure of USA Fertilizer Distribution
A Estrutura de Distribuição de Fertilizantes nos EUA
Basic Manufacturers
Indústria de Fertilizantes
Basic Mfg.
Distributor
Cooperative
Distributor
Atacado do Fabricante
Atacado de Cooperativas
Atacado
Independente
National Corporate
Stores Cooperative
Locations
Independent
Dealer
Cooperativas
Locais
Revenda
Independente
Lojas Próprias do Fabricante
Independent
Distributor
Farmer
Produtores
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
30
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership Structure of USA Ag Chemical Distribution
A Estrutura de Distribuição de Defensivos nos EUA
Private Label
Manufacturers
Basic Manufacturers
Generic
Manufacturers
Indústria de Marca
Própria
Indústria de produtos
diferenciados
Indústria de genéricos
National
Corporate
Warehouse
Cooperative
Distributor
Independent
Distributor
Centro de Distribuição
Atacado de Coopetativas
Atacado
Independente
National Corporate
Stores Cooperative
Locations
Independent
Dealer
Lojas Próprias do Fabricante
Cooperativas
Locais
Revenda
Independente
Farmer
Produtores
Trends in USA Ag Inputs Distribution
Tendências na Distribuição de Insumos nos EUA
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
31
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership Fewer Larger Customers
Concentração – Poucos Clientes Grandes
• Intense competition • Competição intensa
• Loss of a single account …much more painful
• A perda de um cliente
… é muito mais dolorosa
• More complex decision making units
• Mais complexo
Unidades de tomada de decisão
• Customers are • more demanding
• focus more on price
• tougher negotiations
• Each customer is unique
and expects to be treated so
• Os clientes estão
• mais exigentes
• maior foco em preço
• negociações mais difíceis
• Cada cliente é único
e espera ser tratado de forma única
Ag Retail Business Models
Modelos de Negócios de Revendas
Three Ag Retail business models
1. Little or no service ‐ low cost – low price strategy
2. Standard service
‐ Same as everyone else
2. High Service – Extra Value
‐ Much tailored service
‐ High technical ability
and equipment
‐ Precision Ag
September 10, 20115
Três modelos de negócios de revendas
1. Pouco ou nenhum serviço
‐ baixo custo – estratégia de preço baixo
2. Serviços padrão
‐ Igual todo mundo
3. Servicos Extra – Alto Valor
‐ Mais serviços customizdos
‐ Elevada capacidade
técnica e equipamentos
‐ Agricultura de precisão
Dr. Dave Downey
Center for Food and Agricultural Business
32
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership Agronomy Consultants
Consultores Agronômicos
Agronomy consultants important
• Some independent
• Many employed by Retailer
• Pay separate for service
Or included with product
• Many ‘Full Service’ Retailers
are able to build trust
and are perceived to be unbiased
• Other farmers prefer
independent agronomist
or employ their own
Consultores agronômicos são
importantes
• Alguns independentes
• Funcionários das revendas
• Pagamento por serviços
Ou incluso no preço dos produtos
• Muitas revendas de “serviço
completo”
são capazes de gerar confiança
e são reconhecidos
e são imparciais
Outros produtores preferem
agronomos independentes ou
contratam eles mesmos
Major Trends In USA Ag Retail
Tendências ‐ Revendas nos EUA
Full Service Operations
Operações de Serviço Completo
• Full service strategies based on
• Estratégias de serviços completo
baseado em
• Information systems and data
• Precision agriculture
• Regular field decision support
• Meeting regulatory requirements
• Agricultura de precisão
• Apoio a decisão de campo
but getting paid for value created is difficult
September 10, 20115
• Sistemas de informações e dados
• Atendimento a legislação
Mas receber
pelo valor criado é difícil
Dr. Dave Downey
Center for Food and Agricultural Business
33
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership Major Trends In USA Ag Retail
Tendências ‐ Revendas nos EUA
Technical / Business Approach
Enfoque Técnico / Negócio
• The sales process is changing
• Processo de vendas está
mudando
• Business – to – business
rather than social relationships • More sophisticated selling
• Business issues as important
as technical issues
• Much higher level of technical competency
• B2B ao invés de relacionamentos sociais
• Vendas mais sofisticadas
• Aspectos de negócio tão
importantes quando técnicos
• Maior nível
de competência técnica
Part III Major Challenges for Ag Retailers Maior Desafios para Revendas
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
34
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership Market Segmentation
Segmentação
Historically, all farmers
were about the same
and marketing to farmers
was simple
Today the market has fragmented
into many different types
of famers
and each segment is different
• Needs
• Business models
• Buying styles
Historicamente, todos produtores
eram iguais
e atendê‐los
era simples
Hoje o mercado está fragmentado
Em muitos tipos diferentes
de produtores
e cada segmento é diferente
• Necessidades
• Modelos de negócio
• Estilos de compra
and must be sold differently
e devem ser atendidos de maneira diferente
Marketing is more complicated
Marketing é mais complicado
Differentiation – Competitive Advantage
Diferenciação – Vantagem Competitiva
A major point of differentiation
is to collect data
and convert it into information
for management decisions
Uma forma de diferenciação
é coletar dados
e converter em informações
para tomada de decições
Combine this with excellent personnel,
equipment, and logistics
Improved efficiency
Combine isso
com excelente equipe,
equipamentos, e logística
People who sell commodities
have difficulty with this strategy
September 10, 20115
Pessoas que vendem commodities têm dificuldades com essa
estratégia
Dr. Dave Downey
Center for Food and Agricultural Business
35
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership Differentiation – Competitive Advantage
Diferenciação – Vantagem Competitiva
If you can’t differentiate yourself
you are forced
to compete on price
Se você não se diferenciar
você será forçado
a competir por preço
Finding points of differentiation
Encontre pontos de diferenciação
• Fertilizer is a pure commodity
• Fertilizante é commodity pura
• Basic services
• Serviços básicos
have become commoditized
estão se commoditizando
• Larger growers have the ability
• Grandes produtores tem a to do much for themselves
capacidade
and are not willing to pay
de fazer muito por eles
for service UNLESS
mesmos
they perceive its value
e não querem pagar
por serviços AO MENOS
que percebam seu valor
Getting Paid For Service
Receber por Serviços
USA Ag Retailers have traditionally Revendas nos EUA tem tradicionalmente
added services
adicionado serviços
and expected product margins
e esperado que a margem dos to cover part or all of the cost
produtos
Services and costs have gone up
cubram parte dos custos
while competition and customers
Serviços e custos aumentaram
have eroded margins
enquanto a competição e clientes
Implications:
• Must become more efficient
• Must sell value to farmer
or strip services
and sell on price
September 10, 20115
corroeram as margens
Implicações:
• Devem se tornar mais eficientes
• Devem vender valor para o produtor
ou tirar serviços
e vender baseado em preço
Dr. Dave Downey
Center for Food and Agricultural Business
36
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership Hiring and Training Employees
Contratação e Treinamento da Equipe
Most successful USA dealers
have learned that employees
are the most critical factor
in differentiating themselves
Revendas de sucesso nos EUA
aprenderam que a equipe
é o fator mais crítico
na sua diferenciação
Well trained technical experts
are a costly investment
but very important
in creating value
Experts técnicos bem treinados
são um investimento caro
mas muito importante
na criação de valor
It helps to be very skilled at your job….
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
37
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership Protecting Ag Retailer’s Position as THE Agronomic Provider
Precision Farming, Collecting and Analyzing Data
are the key to high tech farming
Traditionally Ag Retailers
have ‘owned’ the space
as the provider of agronomy
Today, the farm equipment dealer
who’s equipment collects data
is increasingly interested
in the agronomy space
There may be a ‘fight’ brewing
with a ‘new’ competitor
Ag Retailers may have to fight
to protect their role
as the agronomic provider
of choice for farmers
And CANNOT assume they own
the agronomic relationship
Meeting the Challenges
Lidando com os Desafios
Revendas nos EUA estão se adaptando ou saindo do negócio
USA dealers are adapting
or they are exiting
Those who are adapting
are doing very well
and making excellent profit
The most successful dealers are:
• Professionalizing their business
• Adding seed specialists
• Adding information specialists
• Upgrading facilities – efficiency
• Finding ways to get paid for created value
September 10, 20115
Aqueles que se adaptaram estão bem e tendo lucro As revendas mais bem sucedidas são aquelas que: The most successful dealers are:
• Profissionalizaram o seu negócio
• Contrataram especialistas em sementes
• Contrataram especialistas em sementes
• Contrataram especialistas em informação
• Melhoraram suas instalações –
eficiência
• Procurando formas de serem pagos pelo valor criado
Dr. Dave Downey
Center for Food and Agricultural Business
38
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership Conclusions
Conclusões
The World Is Changing Very Rapidly
o Mundo está Mudando Muito Rapidamente
The speed of change today
is unprecedented in our lifetime
A velocidade de mudança hoje não tem precedentes na nossas vidas
Agriculture in the Americas
is in a wonderful place
to help feed a hungry world
Agricultura nas Américas esta em um maravilhoso lugar para ajudar a alimentar um mundo faminto
Dealers are in the best place
to understand and assist farmers
in accomplishing this task
Revendas estão na melhor posição para entender e ajudar produtores em realizar esta tarefa
No one can know and understand
farmers better and serve their needs as efficiently
Ninguém pode saber e entender melhor os produtores e satisfazer suas necessidades tão eficientemente Never has their been
a better opportunity for success
Nunca existiu uma melhor oportunidade para o sucesso September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
39
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership Introducing Your Experts
Johnny Council, President Tremont/Lyman Group
Tremont Group
Woodland, California
http://tremontag.com
/
Terry Talbot, President
Colusa County Farm Supply
Williams, California
http://ccfsinc.com/
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
40
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership Terry Talbot
Colusa County
Farm Coop
Johnny Council
The Tremont /Lyman Group
The Tremont/Lyman Groups
Colusa County Farm Supply
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
41
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership The Tremont/Lyman Groups Woodland, CA
Colusa County Farm Supply
Williams, CA
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
42
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership The Tremont/Lyman Groups
The Tremont/Lyman Groups
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September 10, 20115
10 retail locations
3 Wholesale Fertilizer Manufacturing Facilities
4 Farm Supply, Parts & Hardware Stores
Fertilizer Storage Facility – Inland Terminal
Seed Division – AgService Seeds
Trucking Division - TSI Trucking
Organic Division
Engineering Division
Regulatory & Safety Compliance Group – MVP
Consolidated
Food Safety & Sustainability Specialists – FS3
255 employees; 65 PCA’s
$165MM sales combined; $14MM Joint Venture Sales
Three time winner of the Environmental Respect Award
(1997, 2010 & 2014)
2011 ARA National Ag Retailer of the Year
Dr. Dave Downey
Center for Food and Agricultural Business
43
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership Colusa County Farm Supply
Colusa County Farm Supply
• Full Service retail facility located 45 miles north of
Sacramento, CA
• Founded in 1973 as a CO-OP with 7 owners
• Became an equal partner of The Tremont Group in 1990
with The Lyman Group
• Change to a C-Corp in 1992 with 35 owners
• Footprint extends roughly 45 miles from facility with 90%
of customers based in a 25 mile radius
• 48 fulltime employees, 11 PCAs
• Five Divisions within the Company:
• Hardware
• Crop Protection & Fertilizer
• Research & Technology
• Agronomy
• Custom Application
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
44
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership Crops of Interest in Our Retail Area
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Tomatoes (processing)
Alfalfa
Walnuts
Beans
Safflower
Milo
Dry Beans
Rice
Melons
Sunflower
Wine Grape
•
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Corn
Organic
Almond
Pears
Prune
Cherries
Peach
Apples
Wheat
Olive
Pasture
Geography
Northern California & North Coast
Corcoran, CA
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
45
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership Role of Independents
• Role of Independent Ag
Retailers in the
Marketplace
o
o
o
o
Vested interest in the community
In it for the long haul
Relationship driven approach
Full service option
Northern California Trends
• The 80/20 Rule
o 80% small to midsize growers
o 20% large growers
& very small
specialty growers
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
46
The American Agricultural Dealer
ECOA A Syngenta/Purdue University Partnership The Tremont/Lyman Groups
Colusa County Farm Supply
Thank You
Assignment
Consider what you have
heard and learned this
week….from each of our
sessions.
Considere tudo o que
voce ouviu e aprendeu
esta semana em cada
uma das sessoes.
Summarize the three most Resuma os 3 pontos mais
important questions or
importantes que poderiam
ideas that you believe
ser uteis na sua
might have potential value cooperativa e que
to your cooperative and
valeriam a pena explorar
are worthy of further
mais quando voce voltar.
exploration when you
return home..
September 10, 20115
Dr. Dave Downey
Center for Food and Agricultural Business
47