The Agro-Chemicals, Fertilizers and Pesticides business being part of the of the agriculture systems gets influenced by several factors that affect the agricultural production, like Timely rain/ water availability, Climatic condition, intervention of bio-technology, increasing trend and preference towards organically produced goods, governmental policies – quotas and subsidies.
In a sector with a high amount of Governmental control in pricing and also the subsidies extended to the farmers, Agrochemicals, Fertilizers and Pesticides producers are faced with a set of unique challenges:
They are forced to becoming leaner, meaner and smarter for survival and profitability,
They have to meet the expectations of stake holders, namely
- The farmer, who aspires for
- Low cost / price
- Consistent quality
- Precision products for specific needs
- Easy availability of products
- Safety to the users from the effects of contact and inhalation
- Hassle free disposal of containers
- Procurement credit
- The consumers of the Agricultural produce, who indirectly influence the farmers usage of the products of the sector, whose expectations are:
- Better nutritional value
- Longer storability
- Cheaper price and
- Lower residues
- The processors of the produce, who like the consumers through their expectations and demands influence the usage by the farmer:
- Longer shelf life of the agricultural produce
- Ease of processing
- Lower residues
- Consistent quality
- The distribution partners, who expect
- Faster movement of the goods
- Strong brand image to influence the sale
- Increased credit periods
- Larger margins
- The Government, who expects
- Regulatory Compliance
- Quality Compliance
- Flexibility to accommodate political equations
- Social Responsibility
- Continuous lowering of prices
- Safe disposal of expired stock
- Safe disposal of containers
- Safety during transport
- The Investor, who expects
- A decent return on his investment
- A clean image as an environment friendly , responsible producer
- Year-on-Year growth and increase in profitability
The challenges of this sector have been compounded by a set of factors that are characteristic to the nature of the business like making available the right product, at the right place at the right time – which means distributing the products across widely dispersed and remote geographies. External Factors like the advances in biotechnology and especially, innovations in the development of genetically modified agricultural produce are also creating challenges where many of the products are becoming out dated.
To continue to grow and improve their profitability the Agro-Chemicals, Fertilizers and Pesticides companies will have to not only address the expectations of the numerous stake holders but also overcome the challenges posed by the recent advances in biotechnology and the regulations concerning Environment, Health and Safety.
How Does SpectraSoft Add Value
SpectraSoft offers solutions that help companies improve their product development, manufacturing and distribution processes and hence positively impacts their top and the bottom lines. The solutions also help companies comply with regulatory requirements and governmental regulations including accounting their business transactions to meet the needs of subsidy and price control regimes. |
