Agriculture

SAI has analyzed the market for and suppliers of various different types of agricultural equipment and components, including:

Machinery and equipment

• Air seeders
• Balers
• Cultivator bars
• Combine harvesters
• Fertilizer spreaders
• Tractors (large, small)
• Windrowers
• Other

Components and raw materials

• Bearings for farm tractors
• Castings for agricultural equipment body parts
• Steel used as a raw material for agricultural equipment and trailers

Through its extensive industry and project experience, SAI has developed expertise in many facets of the industry.

OBJECTIVE

A major international supplier of bearings commissioned SAI to assess the Australian market for bearings in agricultural equipment and machinery, covering both Australian OEMs and aftermarket channels

APPROACH

The study included a broad-based assessment of:

• Cultivation patterns and harvesting trends in production of major crops in Australia
• Purchasing and usage trends for major types of agricultural machinery and equipment
• Profiles of major Australian OEMs of agricultural machinery and equipment and leading parts dealers and repairers
• Comprehensive mapping of bearing sales into the agricultural market, including value chain dynamics, repair and maintenance mechanisms, and key success factors
• Client’s current market position and perceived strengths and weaknesses in this market segment

RESULTS

The study directly facilitated the client’s development of a focused market strategy to expand its business and strengthen its sales channels into the agricultural machinery and equipment market in Australia

SAI has substantial experience globally in formulated fertilizers, micronutrients and fertilizer raw materials SAI has analyzed the different segments and participants of the global market in numerous geographical areas. SAI’s staff has focused on understanding a wide range of strategic and functional issues that relate to both the business dynamics and technology/performance issues of both competitive products and geographic usage.

Functionally, SAI’s staff has conducted strategic and tactical analyses for:

• Long-term business planning purposes
• Manufacturing cost assessments
• Market segmentation analyses
• Commercial development programs

OBJECTIVE

SAI’s client is the world’s leading supplier of mineral fertilizers. Since joining the WTO, China has adjusted its agricultural structure and improved fertilization technology thus increasing the demand for premium fertilizers. The client required an in-depth understanding of the following for its strategy of pursuing downstream marketing opportunities in China for high-end produce

APPROACH

SAI developed information and analysis through 252 interviews in key geographic areas (Beijing, Hebei, Shandong) for target market segments (retail, 4/5 star hotels, food service)

RESULTS

• Identified key points of influence on quality specification and agro inputs
• Identified key supply chain participants along with priority end-use markets
• Analyzed target end-users for pull marketing with assessment of opportunity for each
• Developed marketing matrix in which the client could best leverage target market
• Recommendations for the client based on primary research conducted by SAI

OBJECTIVE

One of the world’s largest suppliers of crop nutrients with a global presence approached SAI to assist with their expansion strategy in Asia. Previously, the client considered the high growth palm oil sector in Malaysia and Indonesia to be a low margin market, and a poor fit with their premium products. SAI was asked to assess the oil palm market in Malaysia and Indonesia and identify any opportunities and the feasibility of market entry for the client in these markets

APPROACH

SAI developed information and analysis through 180 interviews in key geographic areas (Malaysia and Indonesia) for target market segments

RESULTS

SAI identified opportunities along the value chain in the target markets, recommended critical success factors for entry, analyzed the client’s current situation, and recommended market positioning and entry strategy

SAI has evaluated all major agricultural crop markets and nonagricultural markets in Asia Pacific.

Based on its proprietary research, SAI understands that volume consumption and the selection of pesticides by farmers vary from year to year in response to such factors as changes in planted acreage, the levels and types of infestations, weather conditions, and/or value in displacement of conventional products by products with higher activity.

SAI has completed analyses for most major insecticides, herbicides and fungicides.

OBJECTIVE

Our client asked us to perform a strategic assessment of its agricultural chemical business by key product. SAI was tasked to determine future outlook, market and technology position and profitability, assess the options available for the business, and develop a strategy for this business.

APPROACH

SAI conducted extensive discussions with senior staff to determine R&D pipeline positions, strategies for consideration and potential for improving sourcing from China and India for key actives. SAI then developed a forecast for target products focusing on in-depth interviews with competitors, regulatory authorities, formulators and others to develop a roster of growth alternatives. Growth alternatives included specific action plans (acquisition or merger candidates) or an exit alternative with a detailed action plan and strategy to optimize the existing business for greatest value.

RESULTS

SAI developed ten strategic options for our client’s North American and international business. We determined scenarios that our client could pursue and created a business plan. SAI judged that generic crop protection chemicals would remain important because this would enable our client to maintain a leadership position in this area. Joint ventures were preferable to acquisitions. The client pursued seven feasible opportunities outlined by SAI.

SAI has deep experience globally in seeds and plant biotechnology, including commercial seeds, biological seed treatments, seed treatments and polymers, and genetically modified (GM) crops. SAI’s staff understands the specifics of the regulatory world, how users and competitors view the permanence of GM crops versus crop protection chemicals, distribution and customers.

The seed industry has become an extension of the crop protection industry. New biological technologies have allowed companies to introduce crop protection into seeds. The discovery-based Ag chemical companies (historically based in chemical technology) developed and commercialized these technologies. To deliver the new technologies and to capture value these companies acquired seed companies. The seed business is as much art as it is science, so the chemical companies have been on a learning curve.

The seed distribution companies and grower-customers of seeds have different decision-making priorities than for chemicals, and chemical companies have struggled with this aspect. Note that the regulatory aspects are significantly different than from chemicals.

SAI has analyzed the GM technology and its participants in the global market in numerous geographical areas. SAI’s staff has focused on understanding a wide range of strategic and functional issues that relate to both business dynamics and technology/performance issues of both competitive products and geographic usage.

OBJECTIVE

SAI’s client, a corn seeds producer, was developing a sales strategy for corn seeds and needed to understand the value chain and the purchasing behavior of farmers. The issues to be studied included:

• Distribution flow of corn seeds and corn grains
• Farming economics (profit and loss of farmers)
• Value added to the price of seeds at each point of distribution

APPROACH

SAI conducted 144 interviews with farmers: seed distributors, dealers and retailers; grain buyers; grain traders; millers and integrators; and financiers

RESULTS

SAI analyzed the value chain of the target product in detail. The study clarified which party was most influential in setting seed prices to farmers and the mechanisms by which farmers select seeds. SAI made recommendations to seed makers on how to maximize trust and interest from farmers

OBJECTIVE

SAI conducted a major market assessment for a hybrid seed technology supplier to provide the client with strategies to enter the fragmented Chinese market with challenges from low-price seed suppliers

APPROACH

SAI conducted over 350 interviews with relevant players in the Chinese seed value chain to develop necessary insights

RESULTS

SAI identified key crop growing centers by geography and pricing, sales, channels, and value chain-related issues. SAI’s staff determined the current and forecasted seed usage and consumption; future trends; and the government current policy and future plans. SAI recommended specific products and markets, a value proposition, a marketing and channel strategy, and a pricing structure