agronomics & marketing - gpca fertilizer conventionnew frontiers & opportunities overall...

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

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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


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


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?


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


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


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


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


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


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


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

+

+

+

+

+

+

+


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


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

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