Crop Nutrients and Ingredient Producers
As the demand for food rises, so does the need for crop nutrients. These include the manufacture and distribution of Ammonia Phosphates, Calcium Nitrate, Potash, Nitrogen Urea and Crop Protection.
Most experts agree that in order to feed the growing global population crop productivity will need to be increased by at least 50% over the next 25 years. This is a daunting prospect and a significant opportunity. Certainly, better agronomic practice will be a significant contributor to achieve this type of increase, but improved crop genetics will also be essential. This goes some way to explaining the huge amount of R&D in this area.
Consumers are increasingly seeking natural, organic and locally sourced low carbon, solutions across a broad range of product categories ranging from food and beauty products to household cleaning and pesticides.
We have deep experience in this sector and having worked with 3 of the top 5 Crop Nutrient providers in the world and 3 of the top 5 Crop Nutrient resellers. Consequently, we are very aware that this is an especially competitive and innovative market sector.
Areas of innovation
In this diverse, complex and sometimes contradictory market the benefits for companies that can successfully negotiate the many challenges and hurdles can be vast.
Global companies in the sector are making significant investments in R&D. April saw BASF announce a new R&D center at its crop protection headquarters in Limbergerhof Germany. Puratos Russia has just officially opened its new innovation center to provide partners and clients with the best facilities to create innovative bakery, patisserie and chocolate products and applications. Corbion a leading food ingredients and bio-based chemicals company has also just opened an advanced R&D and applications laboratory in Gorinchem. The laboratory focuses on the development of new bio-based products, comprehensive application development, testing and trials.
The reason companies are investing heavily in R&D is that there is a significant need to find ways to mitigate the challenges posed by global warming, increasingly invasive and resilient pests and the needs of growing, increasingly urban, populations. Major funders in areas such as genetically modified organisms (GMO) range from philanthropists such as Bill & Melinda Gates to commercial companies such as Syntegra and DuPont. The threats are significant but so too are the opportunities. The leaders in the field are adopting a dual pronged approach. Heavy investment in R&D backed by a constant drive towards synergy savings across the buy-make-move-fulfill supply chain to deliver the greatest value to customers and investors, what we call Total Value Optimization™.
What Maine Pointe Achieves
A multibillion-dollar integrated producer of fertilizer, industrial and animal feed products.
What we did
- Redesigned rail service across the client’s network
- Led the effort to gain carrier buy-in for the new network
- Coordinated and facilitated network modeling efforts
- Network-wide redesign of rail service
- Reduced average cycle time by around 50%
- Annualized savings in excess of $15M
- Increased rail fleet utilization, enhanced ability to profitably serve N American market
- Increased velocity through N American network
One of the world's leading producers and marketers of concentrated phosphate and potash.
What we did
- Class 1 railroad contract negotiations support
- Logistics Control Center design and implementation
- Simulation modeling sizing of rail fleet
- Targeted network modeling
- Identified value-driven enhancements
- Identified rail infrastructure requirements at origin points to meet growth projections
- Provided market competitive pricing with further incentives to support a lower cost supply chain model
- Focused on unit train movement, maintaining flexibility to manage 25+ car blocks and carload traffic
- Integrated client and carrier supply management process
- Optimized car velocity
- Facilitated growth through strategic capital investments
- Delivered a 7.3:1 ROI
Maine Pointe has been instrumental in helping guide us with our long-term transportation and distribution strategy. With a tremendous team possessing expertise in many disciplines, they were able to communicate knowledge, and effectively transfer it, to our people. We have been extremely pleased with their performance.”
G David Delaney, EVP & COO Potash Corp