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Agronomics & Marketing
New Frontiers & Opportunities
CVA, with unparalleled experience, is well placed to accompany players in tackling challenges and seizing the opportunities
• Corporate Value Associates (CVA) is a generalist consulting firm, with a 15yr+
experience serving the agri-inputs industry and agricultural commodities
• Created in 1987, CVA currently operates in 18 offices worldwide, with more than
300 professionals and a unique network on industrial experts
• CVA combines agricultural knowledge and digital skills, enabling us to lead the
transformation of distribution models and user experience within several
industries
• This document was created by the CVA Ag Team, a team dedicated to support
major players from the agriculture and agri-food industry shape and grasp
opportunities
\
New Frontiers & Opportunities
4 major global trends point to opportunities of bringing value if addressed correctly
CHALLENGING FARM ECONOMICS
INDUSTRY CONSOLIDATION AT GROWER & AG-INPUTS
LEVELS
TECHNOLOGY & INNOVATION EXPLOSION
GREATER REGULATION
Commodity downturn Farming consolidation Soil analysis Fertiliser application
Interest rate to raise Downstream integration from fertilizer producers
Access to information Harmful chemicals
Genetic engineered pdts.Yield growth slow-down
New Frontiers & Opportunities
Overall approach
• Focus on key enablers
‒ Relevant innovations
‒ Implementation strategy roadmap
• Define a value proposition in line with diagnosis
• Identification of the right mix of products and services
ROLL-OUT DESIGN TARGET OFFERINGDEFINE FARMERS NEEDS
• Profiling of farmers
• Mapping of the farmers journey
• Identification of farmers pain points
New Frontiers & Opportunities
Farmers can be categorised in specific segments, based on specific objectives and needs
Main needs driver XXX
What are the main need drivers for your farmers?
Owner operator Managed
Hobby grower
Stable family operation
Cash-constrained grower
Side-income grower
Steady state manager
Ambitious entrepreneur
Drive Performance
Manage Risk
Seek Convenience
Drive Performance
Manage RiskMinimizecash out
Main
Side
What are soil and climate
specificities?
New Frontiers & Opportunities
Farmers’ needs derive from their journey and pain points
Strategic preparation
Soil testing
New products & practices information
Benefits case
Harvest
Weather monitoring
Harvest start date
Production storage
Performance review
Data sources
Cost/ yield & team performance review
Gross margin analysis
Crop sowing
Fall application of P&K
Activity schedule
Forward hedge (1/3 crop)
Main purchasing
Product needs
Benchmark pricing
Crop development
Spring N application
Management of team activity & cost/ budget
Forward 1/3 grain
Marketing
Sell of remaining 1/3 of crop on spot
Out of season activities
Investment plan & case for next season
Out-of-season maintenance activities
1 3 5 7
2 4 6 8
New Frontiers & Opportunities
Targeted offers can be designed to address those pain points, making sure they bring value to all stakeholders
Conventional row crops
Premium row crops
Cash crops
Drive PerformanceMinimizecash out
Manage Risk Seek Convenience
What are strategic farmer segments? How big is the value pool?
What products / services fit with each farmer segment and pain point?
What are farmers pain points to solve? What are my competitive advantages?
1
2
How do you tailor the
value-offer?
3
4
New Frontiers & Opportunities
Offers addressing specific pain points can be designed through a range of products and services
PRODUCTS SERVICES
Specialty
CRF, water soluble fertilizers, foliar, biostimulants, etc.
Semi-specialty
NPK, Polysulphate,
micro-nutrients fertilizers, etc.
Commodities
Urea, AN, MOP, MAP, DAP, etc.
Performance management / guarantee
Alerts & Information
Guidance & advisory
Conventional row crops
Corn, soybean, sugarcane
Premium row crops
Tomato, Cabbage, Peanuts
Cash crops
Coffee, cocoa, tea
New Frontiers & Opportunities
Product innovation might create significant value through agronomic analysis and a customized route to market
Structured & evolutive approach … … Leading to value creation
KEY PRINCIPLES
It is possible for fertilizer manufacturer to capture a share of the agronomic value-added of products
DAP FOB US South - Selling price
New - Selling price -Nutrient value only
New - Selling price - with agro
value added
Agronomic value Sulphur Sulphate NP
in $ per ton, product
value captured 1
Adapt route to market to regionalmarket features
2
Ramp-up regional salesforce and develop marketing function
3
Develop the right product range in line with farmer pain points (i.e. soil
deficiencies)
VALUE ADDED SELLING PRICE
New Frontiers & Opportunities
Services – The new era in the Agricultural space also forces a value proposition encompassing digitally-enabled services
Agronomic Revolution
18th Century
Suppression of fallow
Crop rotations
New cereals and seeds
Mechanical Revolution
20th Century
Mechanization
Fertilizers and crop protection
Hybrid seeds
Digital Revolution
21st Century
New technological dimensions:
satellite, GPS, data…
Advanced crop nutrition and soil
health products
Precision and green farming
Collaborative economy
"We are entering a new era in agriculture –
one with significant challenges that demand
new, sustainable solutions and technologies to
enable growers to produce more with less.”
H. Grant, CEO of Monsanto
New Frontiers & Opportunities
Services – Digital services are a means to boost the traditional product sales, but are not a value pool in itself
VERTICALLY
INTEGRATED SILLOS
PLATFORM AND
DATA-DRIVEN INTEGRATORS
CHEMICAL AND
BIOCHEMICAL CONVERGENCE
INTEGRATED SOLUTIONS WITH GROWERS
WITHIN ECOSYSTEM
PRODUCT INNOVATION
SERVICE INNOVATION
Specialized products
Semi-specialized
products
Commodity products
No services Basic services Integrated services
Coordinated &
integrated innovation
New Frontiers & Opportunities
Services – Agronomic services bring value to both the farmer and the Ag company
Benefits for the farmer Benefits for the AgInput co.
Digital tools Foster information and transaction flow Promote awareness of products
Local field testing Test efficiency of productsSupport adoption of enhanced value
products
Model farm Gain leverage to conduct large-scale trials Drive changes in fertilization practices
Soil analytics technologyDevelop soil sampling and analysis
capabilities
Identify relevant deficiencies for
advanced products
Crop nutrition prescription &
sensingAccess fertigation sensing equipment &
integrated software
Identify application windows for advanced
products
Prescription software Define crop nutrition needsCalculate RoI and simplify adoption of
higher value product
Yield guaranteeGet reimbursed if yield does not cover
fertilizer premium
Increase adoption of cost-intensive
products
+
+
+
+
+
+
+
New Frontiers & Opportunities
Zoom on digital services roll out
Implementation steps
Design and testing with end-users (farmers, retailers)
Develop in Agile mode (iterations of 3 weeks)
Working product (within 3 months)
Key principles
New Frontiers & Opportunities
Their implementation roadmap is critical
What pain points?
How is the offer differentiated?
Why is it relevant for the company?
OVERVIEW OF AGRI LANDSCAPE
REVIEW OF PAIN POINT/ NEED
CUSTOMIZED MARKETING VALUE DRIVERS AND APPROACH
BUSINESS CASE
Thank youwww.gpca.org.ae