Multinational seed producers have significantly reconsidered the principles of working with distributors in recent years — LNZ Group

In recent years, multinational companies that produce seed have significantly reconsidered the principles of working with distributors: their number has decreased, and the requirements for partners have become stricter. This was reported by the director of the distribution company of LNZ Group, Andrii Poltavets.

Multinational seed producers have significantly reconsidered the principles of working with distributors in recent years — LNZ Group фото 1 LNZ GroupThe key criteria now are the distributor's financial stability and business diversification, the presence of a strong sales and agronomic-support team, as well as readiness to jointly invest in production, sales and marketing of individual product categories.

"Therefore, the primary criterion for us is first who, and then already with what and where. If a partner company is ready to create a new business model with us for at least 3 years, then we too are ready to invest in this model, develop it and bear responsibility for our obligations," says Poltavets.

As a separate criterion, the company names maximum use of its own expertise in seed production and production capacities. LNZ currently already has strategic long-term partnerships with companies such as Syngenta and Limagrain.

LNZ Group received exclusive rights to the supply of the corn hybrids LG 31263 (FAO 270) and LG 31332 (FAO 310), as well as the mid-early sunflower hybrid LG 50541 CLP from Limagrain. In addition to commercial distribution, LNZ Group also received exclusive rights to the field and factory production of Limagrain hybrids.

In addition, LNZ Group became the exclusive supplier of the sunflower hybrid NK Kondi from Syngenta. Within the framework of the partnership, the company received exclusive rights to the field and factory production of this hybrid at its seed plant's facilities.

Commenting on the cooperation with SESVanderhave, LNZ emphasised that sugar beet seed is the company's "genetic code" — it was precisely from this direction that its activity began almost 90 years ago. SESVanderhave became LNZ's first international partner in seed supply, and cooperation with it has been going on for over 20 years.

According to Poltavets, the effectiveness of the partnership is assessed not only by sales but also by the possibility of joint long-term business planning. In peak years SESVanderhave's share of the Ukrainian market reached 35-40% at a sugar beet sowing area of 500-700 thousand ha. Now the company's market share is about 20%, which LNZ considers a stable result in view of the significant reduction in sown areas and the wave-like dynamics of the sugar market.

LNZ Group will exclusively supply the sunflower hybrid NK Kondi from Syngenta. From now on farmers will be able to purchase this hybrid only through LNZ Group representatives and directly from Syngenta.

Source: latifundist.com

Partners LNZ Group

  • LNZ Web
  • Tevitta
  • DEFENDA
  • UNIVERSEED
  • Weagro
  • BASF
  • Limagrain
  • SesVanderhave
  • Syngenta