Great potential
The markets account for a very considerable share of the world market for crop protection products. However, for Cheminova they remain relatively uncharted territory. In 2010, the region thus generated only 5% of consolidated revenue. However, the potential is far greater.
- Last year, 40% of sales in Region International were generated by new products/formulations and sales in new markets, Mats explains. - Many of the markets in the region are growing and will offer many opportunities in the coming years.
Major changes have already been happening this year. Australia, formerly in the same region as the USA and Canada, was transferred to Region International on January 1 to increase focus on the North American market. Also, India is now included in the region.
In the first half, Region International accounted for 21% of consolidated revenue. The changes have thus led to a more than fourfold increase in revenue in the region – and Mats is pleased.
Close collaboration with India
More integration and collaboration are on the agenda in Cheminova’s subsidiary in India. - We have started working more closely with our Indian colleagues about everything from development to production, he explains.
- Also, in Region International we are now looking to see whether some of the product opportunities pursued by Cheminova India may be exploited in other markets in the region, for example in South East Asia. We are also seeing whether we might be able to increase exports from India.
Moving ahead in Africa
In addition to India and Australia, Cheminova now has local organisations in Russia, Ukraine, Taiwan and Kenya, while the other markets are covered by export sales to importers. The most recent addition is the representational office in Kenya, which has strengthened the company’s position in East Africa.
- Generally speaking, we have a strong position and a high market share in the markets in which we have our own organisations and strong product portfolios. In other countries, gaining a foothold is hampered by registration systems and competition, says Mats.
However, there are exceptions to the rule. Japan, where obtaining approvals to sell one’s products is generally quite expensive, is our largest market in Asia after India. And in China, which we normally think of as a major producer and exporter of cheap products, we have started selling gamma-cyhalothrin. - It is such a huge market that we cannot ignore it.
We have started out quite slowly as we must first get to know the distribution system and find out how to proceed from there, says Mats.
Geographical challenges
Asked about the greatest managerial challenges in his job, he mentions two aspects: Geography and the diversity of Region International.
The region covers an absolutely huge area. After the inclusion of Australia, there is a ten to eleven-hour time difference between one end of the region and the other, stretching around half the globe. This means long travel times and often delayed communications.
Mats himself is based in Switzerland as he is also head of the subsidiary Pytech. Recently he needed to hold a meeting with his Australian colleagues. They decided to meet halfway. Which was in Bangkok! It is very illustrative of the distances involved.
A region which has everything
Diversity is another challenging aspect of the region. - We have everything, Mats observes. - All the crops, all the plagues.
And markets at widely differing stages of development. The high degree of complexity puts our registration group under considerable pressure as it has to try to understand the needs and requirements of the individual markets while at the same time maintaining an overview of available studies for each and every product.
Diversity is also what makes the region really exciting. It is a whole new world – not only for me, but also for Cheminova in many ways.
|
