Farmcochem Sdn Bhd’s foresight
Date:08-18-2008
The Farmcochem’s mission: what makes it different from other companies?
“Our company’s mission is to be the leading brand in the manufacturing and marketing of agrochemicals in Malaysia and overseas,” Mr. Ricky Chey said. Farmcochem has been aiming to build a brand name as a well-recognized and reliable supplier of Glyphosate. One of the company’s core competencies is in the area of product development. “We work closely with industry experts locally and overseas to produce and develop new formulations which are highly efficacious and safer for the crops and the environment. The development of high quality formulations is reflected in Farmcochem’s product range,” Chey said.
Farmcochem played a role as the 1st generic registrant of five products in Malaysia. Some significant achievements from Farmcochem would be listed as follows.
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Achievement
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Triclopyr (a main broadleaves herbicide used in oil palm plantation)
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1st generic registrant in Malaysia
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Fluroxpyr (herbicide used in oil palm plantation)
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1st generic registrant in Malaysia
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Quinclorac 80WDG
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1st generic registrant in Malaysia
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Bispyribac Sodium (a leading rice herbicide in the region)
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1st generic registrant in Malaysia
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Emamectin Benzoate
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1st generic registrant in Malaysia
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Cypermethrin (water-based)
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1st company to successfully develop and commercialize the highest concentration of Cypermethrin
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A Proprietary Insecticide
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Pipeline product; targeted to commence commercialization 2008
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A Proprietary Herbicide
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Pipeline product; targeted to commence commercialization 2009
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Malaysian agriculture: how to interact with the growers, what about the distribution and offering?
“We have a dedicated Technical Services Team responsible for product development, field trials, training and education. We provide technical support to our network of distributors throughout Malaysia and around the region. We have established a 24-hour customer hotline to ensure that our customers’ needs and queries are attended to around-the-clock. Our Technical Services Team also offers customers professional agronomic advisory and consultation services. These services include soil and foliar analysis, fertilizer recommendations, pesticide applications and general estate management,” Mr. Ricky Chey said.
The Farmcochem group of companies has more than 150 products registered locally. Farmcochem services a network of more than 500 distributors throughout Malaysia through its 6 sales offices located in Perak, Selangor, Johor, Butterworth, Kelantan and Sarawak.
Farmcochem commitment to producing high quality products and professional technical services has resulted in the Company been chosen as the supplier to some of the largest and most efficient oil palm plantations in the world.
International market: what has been the largest challenge and what would hope to achieve in the international/export market?
“One of the biggest challenge is for us to establish a brand as a producer of agrochemical products. This is because we consider ourselves as a late entrant to the international market and customers are not familiar with our strengths. Nonetheless, we can see that we are making in-roads to the international market. Our customer base is expanding and they are seeing that we add value to their business. We are currently exporting to more than 25 countries”, Chey said. Farmcochem is making the company more visible through participation in conference, exhibition, magazine advertisement and references. The company believes it’s more than customer acquisition; rather it’s about customer retention through long term partnership, support and trust. Although this is evident in the period of Glyphosate shortage, many of the customers are still getting regular supply.
Farmcochem will continue to expand its international business especially into key markets like Central and South America. “We believe our strength in the Glyphosate compound will give us an added advantage to penetrate into this market. In the next five years, our target is for the international business to account for 60% of our business. Another avenue for growth will be through strategic partnership, joint venture or M&A activities. We are particularly interested in expanding through M&A in markets like Thailand and Australia”, Chey said.
The company’s strategic plans of the new products for 2008-09 in both domestic and international:
A proprietary insecticide is currently developing and being expected to get the registration in Malaysia by 4Q 2008. Another proprietary herbicide is also in the registration stage. And the product is also expect to be commercialized by 3Q 2009. In Malaysia, many of the oil palm plantations are embarking on RSPO (Roundtable on Sustainable Palm Oil) certification, Mr. Chey believes the trend would be for these plantations to use chemicals which are safer to the environment, crop and workers. This is in line with the products that we have in the pipeline. The company is developing various water-based and premix insecticides and herbicides which are highly efficacious and safer for the crops and the environment.
On the international front, Mr. Chey believes that there are going to be opportunities in China as the country is committed to consolidating the agrochemical industries. Many of the smaller factories without proper environmental management will be merged or shut down. These smaller factories lack the financial capabilities to install proper waste management facilities required by the authorities. This is an opportunity for our company to provide the required financial support and investment in technology in return for an equity stake. This will strengthen our position as an integrated producer with the ability to control cost and quality of our products.
Backgroud about the interviewee:
Mr. Ricky Chey, the executive director of Farmcochem Sdn Bhd.
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