When Limagrain started way back in 1965, we were a farmer cooperative servicing a relatively small geographic area. As we grew over our first 35 years, we still operated solely in Europe. Then, in 2000, we formed our first joint venture in the United States. Since then, we’ve grown in multiple directions and now have 13 highly valued partnerships located in diverse geographic regions around the world. What have we learned about partnerships over the last 25 years? A whole lot, actually.
The first and perhaps most important question is: why partner? Although Limagrain is a relatively large company, there are times when even a company as large as ours has to admit that we aren’t big enough to do everything, know everything or have everything it takes to succeed in every region. So, it makes sense for us to form collaborative, strategic partnerships in order to meet research or business objectives. Our move into partnerships didn’t happen overnight. It has been an organic process and one that’s accelerated over the past 15 years.
While joint ventures have proven pivotal to Limagrain’s growth and reach, working with partners isn’t for everyone and it’s not always an easy process. Joint ventures can be complicated, and they can take a lot of management time. I like to compare them to marriages: you need to go into partnership with your eyes open; you must show your partner a huge amount of respect; and you have to be willing, at times, to compromise. Joint ventures don’t suit every company, but they’ve been an excellent fit for us.
Why do partnerships work for us? We are owned by farmers and led by farmers. Simply put, cooperation is in our DNA. We have built our business by acquiring or partnering with seed companies around the world and today have joint ventures in Africa, Australia, China, Europe and North America.
One partnership we are especially proud of is with Seed Co, the largest seed company in Africa. Seed Co got its start in Zimbabwe and now operates in many African countries. When Limagrain became a shareholder, we became active in the company’s day-to-day strategy and together we created additional joint ventures in South Africa as well as in West and Central Africa.
Our success in Africa may surprise some readers. That’s because most European and North Americans’ impression of Africa centers on three key things: corruption, poverty, and war. That perception, fed by media headlines, isn’t the whole reality of Africa at all. It’s easy to forget that Africa comprises 54 countries, many of which are engaged in a broad range of agricultural endeavors. In sub-Saharan Africa, for instance, we do business with about 25 million small farmers who typically each buy a single 2.5 lb (1 kg) bag of seed annually. Our South Africa farmers, on the other hand, use a high-tech, large farm model that’s virtually identical to the one seen in Canada and the U.S.
Each region has a unique way of doing things but, at the end of the day, farmers across the globe need high performance seed in order to maximize their yields. We form joint ventures with regional seed companies to ensure they have what they need to succeed.
uzzleIf I have learned one thing over the years, it’s that when contemplating a joint venture, you need to be sure that you’re partnering with a company that’s wired for collaboration. Companies, like people, have their own personalities and cultures. Some are lone wolves. Others are driven by cooperation. Partner with the right company and everyone wins.
