The Search for Opportunities
FROM THE EDITOR
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By Renee Targos Editor |
It’s been a hard year. Taxes are high. Companies are trying to decrease their stock. China continues to produce, so its anticipated prices may keep going down, outpricing other companies. Faced with these difficult challenges, panic might set in, but there is a way through.
I’m going to share with you some advice I received from one of AgriBusiness Global’s advisory board members, Daniel Traverso, Vice President of Anasac International Corporation and Director of Anasac Colombia Ltd and Anasac Mexico. In a recent conversation, he shared insights into Mexico and Central America and offered tips to survive a tough year.
Traverso says while some companies’ strategies are focused on the amount of products they sell for lower prices, there is another way. Some companies focus on the value of products, such as innovation and offering something different to a niche market.
Using Mexico and Central America as an example of niche markets, Traverso says Mexico is doing great as an exporter of fruit and vegetables, especially with its geographic location to the U.S.. Central American countries are also exporting specialty crops. With agriculture thriving in this region, growers need support, and there are crop protection opportunities if you look for them.
Traverso says when there is oversupply in the market, this is the time to search. Companies should be looking for growers with a specific crop and need, and then bring them your innovative product. His philosophy is: “Country by country. Customer by customer.”
This takes more work as it is a strategy about finding a specific niche.
“You have to be more careful,” Traverso says. “You have to choose the best dealers, best crops, and market segments. This is the time to go slow, invest in the niche area. There are good opportunities.”
His strategy for finding niche markets is based on changes in the industry that happened over the last 15 years. In past times, there were less crop protection companies in LATAM, and it was easier to do business. Companies could introduce their product into the market, and it would sell.
Now, it’s more about the channel rather than a company’s portfolio. Multinationals are acquiring dealers to get to growers. Your company should be addressing the following questions in the face of these developments:
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How are you going to market?
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How are you going to tell the farmer your story?
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How are you going to support the grower after they purchase your product?
Finding the right dealer is difficult, but this is also where your focus and effort should go in searching for the right relationship. Finding that dealer, who has inroads with growers and insights into what the gaps are in the market, will be a great benefit in doing business in hard times.
“Relationships are important,” says Traverso. “We work with living things: crops, diseases, pests, and weeds. A good solution today, may not be tomorrow, because living things change. Some recommendations work well for five or six years, but resistance happens. Relationships and communication is important so you know what farmers need today.”
Traverso believes in every country there is an opportunity. For this issue of AgriBusiness Global™ DIRECT, we focus on Central America/Mexico. This is a region worth investigating. Mexico is growing in its exports. Central America has crops where companies can make money.
We hope to give you insights to expand your business in this region. We have Javier Chavarro’s article showcasing where you can start to build your inroad relationships. We also have updates on how to introduce biological solutions into this region.
I’d also like to invite you to the AgriBusiness Global℠ LATAM Conference happening this month, 14-15 May 2024 at the Sheraton Grand Panama in Panama City, Panama. Traverso will be there moderating a panel discussion about export challenges and finding solutions from the point of view exporters. It’s a great time to learn, network, and get the information you need to start your own search for opportunities in LATAM.
I hope you enjoy this issue and hope to meet you in person at the ABG LATAM Conference to talk more about ideas for getting through a tough year. •
