b'PRODUCTIONDeath by GrowthJIM SCHWEIGERT President, Gro Alliancejim.schweigert@groalliance.comgroalliance.com@GroAllianceSELLING TOO MUCHcould be the end of your company.It is now stuck selling seed below breakeven without a way to Pretty provocative words, but its an idea that has sunk com- convert the bargain-shopping customers into premium-priced panies in and outside of agriculture. customers.A good example is the farmer that says, If the bins full after harvest, it was a good year. Maybe, but only if the grain put intoDont Expand Your Lineup Without a Proper Strategythe bin generated a profit. A farm show attendee visits your booth seeking 400 seed units Seed companies prioritizing sales growth over profit growthfor next yeara big sale! However, hes 200 miles outside your risk falling into a common trap. While selling more seed canterritory and needs maturities you dont offer. The company buys reduce overhead costs per unit and potentially increase profits,new hybrids for him, makes the sale, and now faces challenges: challenges arise when growth depends on hiring costly salespeo- arranging long-distance shipping, handling returns, building ple, expanding warehouse space, or entering unsupported terri- a crop plan, and setting up a test plot to attract neighbors. If tories. Additionally, while higher volumes might lead to discountsexpanding into this area fits the companys strategy, its a great and bonuses from suppliers, these should not factor into profitopportunity. If not, its wiser to decline or charge a premium to calculations for new sales, as they are often unstable and subjectcover costs without relying on future sales. to supplier discretion.A Company Never Goes Broke Making a ProfitEvery Bag Sold Needs to be Profitable on Its Own Growth and volume are often seen as success indicators, but This seems like a simple concept. Only sell what you makesustained growth is only viable if sales are profitable. A business money on. But the never-ending quest for growth can get acan handle some unprofitable sales but will fail if unprofitable company sideways quickly. A common strategy can be to offergrowth dominates. As a retired seedsman advised, Run your discounts to get on the farm. The problems start when a com- business; dont let it run you. Prioritize profit to guide what, pany cant convert those discounted sales into profitable sales.where, and how you sell.SEED COATINGSometimes, Change Means Taking a RiskSHAWN POTTER Global Marketing Director, Agriculture, MichelmanShawnPotter@michelman.commichelman.comAGRICULTURE IS Acommunity, and in my experience, somestarted using its products for seed coatings and foliar applica-of the best meetings still happen over a cup of coffee. tions. To better serve the agriculture market, Michelman made A lot has changed in the agriculture industry over the past 30significant investments in agricultural R&D. As new microplastic-years, but one thing remains constant: the importance of rela- free technologies began to emerge, Michelman looked to bring tionships. Whether I was farming, selling seed and fertilizer, orthose innovations to market. Thats where I came in.working with polymers, I learned that customers want to feel thatRelationships in agriculture are built on years of trust. you understand their business and have their best interests atDelivering a quality product, which Michelman has been doing heart. Although I transitioned from a large multinational companyfor decades, isnt enough. You also have to understand the reali-to a family-owned business with Michelman, the agriculture com- ties of farming: its unpredictability, the risks growers take every munity still feels like part of my family. day, and the constant demand for innovation that supports their After more than 25 years at Syngenta, making a move mightsuccess.have seemed like a career risk. I had worked across the spec- At Michelman, we understand that agriculture is more trum of agricultural products building knowledge, connections,than a business; its a way of life. That mindset has shaped my and stability within a major industry player. What drew me toentire career. Michelman gave me the chance to establish an Michelman was the rare opportunity to take my experience andagriculture division built on a foundation of innovation and a build something new with a company eager to expand its pres- commitment to the long haul. Were not just selling agricultural ence in agriculture. Michelman, with its 75 years of expertise inproducts. Were developing expertise and making investments water-based coatings and additives for various industries, sawthat will benefit growers, manufacturers, and the entire supply tremendous potential to grow its agriculture business. It was achain for years to come.challenge I couldnt resist. If we havent met yet, I hope we do soon. Chances are, it will Michelmans interest in agriculture began when customersbe over a cup of coffee. I take mine black, of course.FEBRUARY 2025SEEDWORLD.COM /21'