The Big Picture – The role of business alliances, partnerships and other arrangements in supply chains

March 17-18 (Part 2)

Todd Davis and Tyler Mark

A common theme emerged from our meetings with Rizobacter, Dow and CIAVT — these businesses identify and use several business arrangements to continue to grow and improve their company through increased market share domestically and globally.

Rizobacter uses multiple partnerships and alliances to broaden their presence in the market. For some products, they use strategic alliances with seed companies within Argentina and globally. Another business arrangement is where Rizobacter sells their technology under a different label. In other forms, Rizobacter provides their products as an input to a seed company and the seed is then branded and marketed with this value added seed treatment.  Rizobacter is a niche provider of microorganisms and has the quality reputation to be able to form these partnerships but maintain their own corporate identity.

CIAVT also stressed the role of business arrangements in the competitive market of beef and dairy semen. Their philosophy is that they preferred to be “colonialized but not conquered” by competition. CIAVT has the reputation in Argentina for quality and consistency as well as a focus on customer service. CIAVT has been able to defend market share even when foreign competitors enter the Argentine market for beef and dairy genetics. CIAVT uses partnerships with the US and EU to source the best genetics for use in Argentina and globally. As the US can’t export live animals to Argentina due to the Mad Cow restrictions and Argentina is restricted in exports due to Foot and Mouth disease, importing the genetic material is an efficient alternative.

AACREA started the group to the concept of sharing ideas among individuals that would normally be competitors (farmers in the land rental market) in a way to achieve mutual growth of ideas and skills. The visits with Rizobacter, Dow and CIAVT further taught this group that while business is competitive, sometimes the most profitable solution is to form business partnerships or strategic alliances for mutual gain.

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