source: Farm and Food Report
In times of increased international competition, the ability to massage the relationship with clients is more important than ever. That is certainly true of what is happening in canola industry.
Barbara Isman is President of the Canola Council of Canada.
“The big challenge we are facing is the dramatic increase in the production of soya beans in South America. Although canola has properties that make it attractive — low saturated fat and higher oil content — this massive increase has driven prices down overall. We, as a developed nation with a relatively high cost structure, are finding it difficult to produce at the price soya bean markets are forcing us to produce.”
As a result, explains Isman, “we have increased the amount of time and effort we are putting into maintaining the relationships we have with our customers. Does it get you more money in the market? No. But does it — all things being equal — get you sales? Yes. When all the competitor commodities are so aggressive, it is a must.”
During the last few months, the Council and industry members who market canola have hit the road to address the challenges at hand. With the amount of frost-damaged canola that costs more to process, producers still manage to fetch a premium for canola, an achievement Isman attributes to what canola producers and marketers have learned over time about their clients’ needs and business approaches.
“Our Japanese customers have been extremely loyal, and that is terribly important as they are our primary customer. In return for that loyalty, they expect to be kept fully informed about all activities pertaining to the Canadian industry on a regular basis. This means staying in touch with the Japanese trade associations and also nurturing that customer-supplier relationship daily. You can never over-communicate with the Japanese market.”
Isman estimates that about half of the Canola Council’s time is spent making sure that the Japanese are being given the information just as quickly as it is accessed. To maintain that kind of intense relationship would likely be even more demanding if customers there did not move as a group, as in the case of Mexican customers, says Isman.
“Mexican crushers seem to be very individualistic and need individual attention. They don’t sit in a room and talk about group issues. Increasingly, they view canola as an attractive, differentiated product, but we must work with them one-on-one.”
In her experience, investing in a good interpreter is often well worth the price. “They will tell you very quietly if your approach is a little bit off in terms of cultural practices. And sometimes they will fix up what you said.”
Every society has its business traditions, and the more you know how people do business in your international markets, the better chances are to close a deal. Isman admits she is particularly impressed with the Chinese approach.
“They love business. They love the deal. I met more billionaires per square foot in China than I ever have in my entire life when we went at the end of September. I shared with our hosts how brave they were to move so quickly in the face of such political and economic change as they face daily. But they just thrive on it. One host explained to me, ‘you North Americans like to take holidays and relax. In China, our fun is business.’”
Without this openness to different practices, doing business would be a whole lot more difficult, according to Isman.
“We start with the premise that we don’t export Canadian values when we establish contact, except for one: respect. We need to respect the culture and the people who are buying our product. We are also fortunate enough to have companies that are selling Canadian canola who have representatives on the ground. We also work closely with our embassies abroad, and we use the good old Internet to maintain contact.”
And canola producers have high hopes that new markets and market segments that are canola-specific will be identified. Isman would love to generate a new lasting demand that could help insulate Canadian producers, to a certain extent, by attracting a premium.
“We used to be the only kid on the block when it came to canola, but now Australia has a canola industry; Europe has a huge rapeseed crop and they are actually exporting — so we don’t have just South America to worry about. It is a new world out there and we have to act accordingly.”
Isman believes there is a place in the world for Canadian canola. The entire industry is working on making sure new opportunities are seized as they emerge.
For more information, contact:
Barbara Isman
Canola Council of Canada
(204) 982-2100
http://www.canola-council.org
In times of increased international competition, the ability to massage the relationship with clients is more important than ever. That is certainly true of what is happening in canola industry.
Barbara Isman is President of the Canola Council of Canada.
“The big challenge we are facing is the dramatic increase in the production of soya beans in South America. Although canola has properties that make it attractive — low saturated fat and higher oil content — this massive increase has driven prices down overall. We, as a developed nation with a relatively high cost structure, are finding it difficult to produce at the price soya bean markets are forcing us to produce.”
As a result, explains Isman, “we have increased the amount of time and effort we are putting into maintaining the relationships we have with our customers. Does it get you more money in the market? No. But does it — all things being equal — get you sales? Yes. When all the competitor commodities are so aggressive, it is a must.”
During the last few months, the Council and industry members who market canola have hit the road to address the challenges at hand. With the amount of frost-damaged canola that costs more to process, producers still manage to fetch a premium for canola, an achievement Isman attributes to what canola producers and marketers have learned over time about their clients’ needs and business approaches.
“Our Japanese customers have been extremely loyal, and that is terribly important as they are our primary customer. In return for that loyalty, they expect to be kept fully informed about all activities pertaining to the Canadian industry on a regular basis. This means staying in touch with the Japanese trade associations and also nurturing that customer-supplier relationship daily. You can never over-communicate with the Japanese market.”
Isman estimates that about half of the Canola Council’s time is spent making sure that the Japanese are being given the information just as quickly as it is accessed. To maintain that kind of intense relationship would likely be even more demanding if customers there did not move as a group, as in the case of Mexican customers, says Isman.
“Mexican crushers seem to be very individualistic and need individual attention. They don’t sit in a room and talk about group issues. Increasingly, they view canola as an attractive, differentiated product, but we must work with them one-on-one.”
In her experience, investing in a good interpreter is often well worth the price. “They will tell you very quietly if your approach is a little bit off in terms of cultural practices. And sometimes they will fix up what you said.”
Every society has its business traditions, and the more you know how people do business in your international markets, the better chances are to close a deal. Isman admits she is particularly impressed with the Chinese approach.
“They love business. They love the deal. I met more billionaires per square foot in China than I ever have in my entire life when we went at the end of September. I shared with our hosts how brave they were to move so quickly in the face of such political and economic change as they face daily. But they just thrive on it. One host explained to me, ‘you North Americans like to take holidays and relax. In China, our fun is business.’”
Without this openness to different practices, doing business would be a whole lot more difficult, according to Isman.
“We start with the premise that we don’t export Canadian values when we establish contact, except for one: respect. We need to respect the culture and the people who are buying our product. We are also fortunate enough to have companies that are selling Canadian canola who have representatives on the ground. We also work closely with our embassies abroad, and we use the good old Internet to maintain contact.”
And canola producers have high hopes that new markets and market segments that are canola-specific will be identified. Isman would love to generate a new lasting demand that could help insulate Canadian producers, to a certain extent, by attracting a premium.
“We used to be the only kid on the block when it came to canola, but now Australia has a canola industry; Europe has a huge rapeseed crop and they are actually exporting — so we don’t have just South America to worry about. It is a new world out there and we have to act accordingly.”
Isman believes there is a place in the world for Canadian canola. The entire industry is working on making sure new opportunities are seized as they emerge.
For more information, contact:
Barbara Isman
Canola Council of Canada
(204) 982-2100
http://www.canola-council.org
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