BCPC REvIEW
Grow your business
with non-crop
Moving into the non-crop market can boost companies’ income and opportunities, experts at
a seminar at the BCPC Congress in Glasgow concluded. However, the move poses a number of
challenges for agrochemical companies, as Marie-Louise du Bois found.
T
he agrochemical industry is facing trends already used by the client, to add value to an Players in the non-crop market, which are
that make it harder for companies to existing solution. potential partners for agrochemical companies,
grow sales and to expand. By expanding include major consumer marketing companies
into the non-crop market, agrochemical While non-crop’s different sectors challenge and professional service companies, Fryatt
companies can climb the value chain and reap the agrochemical companies to convey their products’ said. Consumer marketing companies use a
financial benefits. “Margins are invariably higher value, they also offer agrochemical companies specialist consumer focus to capture a segment
than in agriculture,” said senior associate at pest opportunities to diversify, Fryatt said. Non-crop by focusing on a market or customer base.
management service company Xenex Associates, covers the turf, pest control, timber treatment, Marketing companies often consolidate their
Rob Fryatt. The sector is also safe from the industrial weed control, public health and market positions or enter new categories through
negative financial impact of unfavourable weather consumer products markets. acquisitions. The acquired product may have
conditions, he noted. less value than the brand but the latter allows
There are various ways to enter the non-crop companies to switch into that segment under a
However, to master non-crop markets and earn market. Tactics include using a specific active well-known name.
higher margins agrochemical companies need ingredient or specialist skills to gain market
to rebrand themselves and their products. To do access, the experts showed. Professional service companies achieve a high
so, they need to reevaluate, and present their added value through services that they render, of
products in terms of a “value created culture” Major agrochemical companies that have entered which pest control is only a small cost component,
and then “value added culture”, UK pest control the non-crop market include Dow AgroSciences, with highly trained technicians, surveyors and
company Exosect managing director, Martin Syngenta, FMC, DuPont, Sumitomo, BASF and sales staff. Sales rely on companies’ service
Brown, said. Bayer. Of these, companies that entered through level and ethic, Fryatt said, not actual original
the sale of a specific ai include DuPont with products. Both marketing and professional
its insecticide indoxacarb, or Syngenta with its service companies increasingly rely on franchise
fungicide azoxystrobin. activity to control market shares. These two
non-crop company types are potential partners
For emerging agrochemical companies for agrochemical companies, as consumers
entering the non-crop market, the best market increasingly rely on trusted brands, which drives
opportunities are US-driven (turf, pest control market consolidation in a globalised world.
or mosquito abatement), Fryatt pointed out.
Companies that have entered the non-crop market Apart from having to redefine a product’s value
through specialist skills sales in rodent control and finding the right partner, agrochemical
include Bell Laboratories, Liphtech and Sorex. On companies wishing to move into non-crop face
the other hand, Whitmire Microgen and Valent further challenges, Brown said. There is a higher
martin Brown
Biosciences entered through specialist skills in demand for green and safe technology, the
insect control. market’s customer base is heavily consolidated
Agrochemical companies may face a lack of and there is a lack of clear market data while
understanding for a product or technology, and As each market sector has sub segments, which facing different regulatory processes, he added.
how it can benefit non-crop customers. This may require differentiated formulation and However, the non-crop message remained
situation requires educating clients and service brands, the non-crop market is complex. To cope positive – “Once you have decided to push your
providers on the product first, which is the value with this complexity, agrochemical companies business in this direction – enjoy and be happy
created culture. It includes outlining products’ risks may partner with non-crop specialists to translate with your decision as it will reward you in
and opportunities to create and explain value pesticide products into value for consumers. “The the end.”
for clients. This step is followed by value added buyer’s culture is solely based on a solution-based
culture, where a product’s value is understood package, therefore you must align yourself with a Marie-Louise du Bois is a news reporter for Agrow
but has to be teamed up with a service provider, professional service provider,” Brown advised. World Crop Protection News
www.agrow.com  •   December 2007 3
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