AgriBusiness Global Report: The Importance of Face-to-Face Meetings in International Business
25 April 2024 In this episode of AgriBusiness Global Report, Fanwood Chemical President Jim DeLisi interviews CPDA President Terry Kippley about the importance of face-to-face meetings for international business and how to get to these meetings without breaking your budget. You can find more information from CPDA at the CPDA Adjuvants, Inerts & Crop Protection Conference in Tucson, Ariz., April 29-May 1, 2024.
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*This is an edited version of the interview.
Jim DeLisi: One of the things that intrigues me is that people believe they can build tight relationships in virtual meetings. I’m still a believer that you have to sit together, break bread, and meet business associates across the table. You have to spend the time and the energy to go visit.
Terry Kippley: I would spend a minimum of two weeks or a maximum of four weeks each year in China, working, sitting, and breaking bread, as you say, with our strategic suppliers. And you’re right. You really do have to develop these human relationships in terms of trust. It works again both ways. You need to be able to trust them, and they need to trust you. If you have that type of access with the owner of the factory or the senior management team, that human a component of any business relationship is very important.
It goes back to: Are you really a strategic partner? Or at the end of day, are you really a virtual meeting transactional purchaser? And when things are going well, virtual works. When things go bad, that’s not enough for a relationship.
I once had a situation to where my company was competing with a major multinational. Their plant went down, and I was able to represent the most stable supply of that pesticide that year because of the relationships that were built with my supplier. That is what creates a competitive advantage when times are tough.
JD: What’s the best way to build trust in international relationships?
TK: You know, business comes down to trust and being able to deliver. If you can’t deliver, then that relationship is not going to last. You have to be able to plan your work, work your plan. Deliver on those commitments and be a credible partner—this strategy needs to work both ways for the relationship to work.
Within the post patent world, you don’t have the benefit of dealing with limited competition because of patents.
There are many other companies that can provide that or provide market access, products, and certainly trust and credibility. If you want to differentiate yourself, there is also speed, being nimble, and truly customer centric that helps in building a competitive relationship in a competitive market.
JD: With travel budgets being cut, what’s a good way to develop these face-to-face meetings?
TK: Conferences, like our CPDA Conference coming up in Tucson, Ariz. A conference that we had right after COVID, we were fortunate to have the CEOs of the biggest distributors present, and during the panel with these CEOs, they discussed the importance of market intel.
When I was spending almost a month each year in China working with suppliers, I was building relationships and getting market intel. At conferences, like our conference, last year we had more than 300 people and 118 different companies. You get exposure to several different people and companies to build relationships in three days. That’s a less expensive way to have face-to-face meetings.
The reason virtual meetings don’t work as well as in person is you don’t get to spend time and gather that market intel. The details of market intel can help you make important strategic decisions that are going to benefit your organization, and ultimately better serve growers.
I think that market intelligence also helps you to understand what’s next. What’s around the corner? The industry is slowly getting out of overstocking and trying to figure out what the price level is. Market intel will help figure out when it’s going to rise. When to make that strategic purchasing. Market intel is really key to good business.
JD: I’d like to add the AgriBusiness Global Trade Summit on August 7-8 in Orlando, Fla. You can make contacts at CPDA in May in Tucson, Ariz., and follow up with them at the ABG Trade Summit.
TK: Absolutely. I’ve made it every single year to the ABG Trade Summit. It is truly the one opportunity from an international global perspective, to pick up valuable market intel. I have forged many, many relationships over the year because of ABG Trade Summit.
JD: Well, I’ve heard it said 1,000 times. If you’re not at the table, you’re on the menu, and that’s the truth for anybody that doesn’t attend these important conferences.
TK: Absolutely.
- Related: AgriBusiness Global Report: Adjuvant Market Opportunities and Four Successful Sourcing Tips
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