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L E A D E R ' S P R O F I L E


Tradecorp: Celebrating its 30th anniversary with impressive growth record


Looking at the recent developments in the increasingly competitive speciality plant nutrition and biostimulants market, there are a few new global players in this business. The Madrid based, Belgian owned company TRADECORP is one of them. Founded in 1985, purchased by the Sapec Group in 2000, TRADECORP celebrates this year its 30th anniversary with pride and

non disputable great satisfaction about achievements. Not only the company has based its growth on an increased production capacity for the EDDHA chelating molecule but it has also successfully developed a bunch of other innovative products in particular in the biostimulants segment. At the same time,

a powerful marketing and promotion policy has efficiently served product positioning and development.

Today biostimulants, including humics, represent 25% of a total turnover that approaches the Euro 100 million symbolic figure! In 2014, Tradecorp hit the headline news when acquiring

Irish seaweed company OGT, therefore expanding its proprietary offering of biostimulants. For the record, in 2009

the company posted sales of Euros 50 million, versus 4 million in 2000! The recipe for such impressive growth? 'Tradecorp understood very soon that it was not an exporting company but an international one. In fact, a majority of the team is today located outside of the domestic market. New Ag International met

with Eric Van Innis, CEO of Sapec Agro-business and Tradecorp.

TRADECORP was founded in 1985 by two Spanish entrepre- neurs aiming at marketing special- ity fertilizers and micronutrients in the growing domestic market. Since then and its take-over by the Sapec Group in 2000, the company, led by its CEO, Eric van Innis, has had continuous expansion with a two digit growth figure every year.


A FIVE PILLAR CORPORATE STRATEGY

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Five pillars continue to constitute the foundations of the company's strategy. Firstly the company's cat- alogue is and will remain restricted to high added value speciality plant nutrition products and biostimu- lants, which could be expanded to biocontrol products in the future. It will not include any commodity fer- tilizer. Second, the company employs only highly professional, multinational staff -today more than 15 nationalities are represent- ed within the global staff. Thirdly,

research and development are a priority in the company. The fourth pillar of development is the high quality and differentiation in prod- ucts. Last but not least - and this is certainly one of the most visible pil- lars for the observer, the company will continue expanding interna- tionally. Today the branded prod- ucts of Tradecorp can already be found in more than 60 countries of the 5 continents. The company has its own representation offices in Egypt, Brazil, Mexico, Belgium, Italy, Colombia and Australia and has established local teams in France, Germany, Morocco, Poland, Turkey, Korea, etc.


A SOLID PRODUCTION CAPACITY

Tradecorp runs two production plants in Spain. The factory in Ávila (Sanchidrián) is devoted to the syn- thesis and production of micro- granulated chelates, in particular the EDDHA molecule, and other solid products. The other factory, in Albacete, is the place where the


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L E A D E R ' S P R O F I L E


An Interview with...

Eric van Innis, CEO of Sapec Agro-business and Tradecorp



ERIK VAN INNIS

Tradecorp is celebrating its 30th anniversary this year.

In your opinion what has been done so 'special' to keep the same prevailing spirit while growing the company from a 4 million Euros turnover to about 50 million in 2010 and much more today, since the acquisition of SAPEC in 2000? The 100 million are now in view, but much more than the turnover I consider the level of EBITDA mar- gin to be key. We have still some progress to do to reach our defined target but already the value cre- ation has been huge and we should be able to deliver much more to our shareholders in the coming years.

This success belongs mainly to the staff of TRADECORP and SAPEC, who have been putting in all their effort and been dedicated to the company now for 15 years. Our success lies in our capacity to analyse and understand our mar- kets in order to develop high quali- ty solutions for our customers, answering their need to improve the quality and the yield of their crops. These solutions need to be perfectly adapted to local needs, combined with a close and person- alised service, offered by a well- trained team speaking the lan- guage of the farmers.


How has been 2015 for TRADECORP in general and for the bio stimulants and humics line in particular?

The bio stimulants business is on

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the rise. Farmers, cooperatives, dis- tributors and all the actors look for an efficient use of their resources. Meanwhile, the whole food-supply chain is demanding higher produc- tivity, higher quality and health improvement products. Bio stimu- lants are key and fit perfectly well to achieve these objectives.

As such, we have been strategical- ly investing in bio stimulants for some years already. We are found- ing-members of EBIC and have participated in different worldwide actions linked to these products. One of the rationales behind the acquisition of OGT in 2014 was the reinforcement of our positioning in this market segment.

It could be said that a great part of our growth in recent years has been linked to the bio stimulants market, where we work providing solutions for all aspects of the plant, from roots to leaves all the way through translocation. In facts, humics and bio stimulants repre- sent more than 25% of our sales.


In June last year, TRADECORP acquired Oilean Glas Teo (OGT), an Irish company founded in 2004, specialized in the harvesting and processing of seaweed. OGT has exclusive access to the resources, allowing the harvesting and processing of fresh seaweed. Through this acquisition, was TRADECORP main purpose to acquire technology or to secure access to a key ingredient in bio stimulants, namely Ascophyllum Nodosum?

Like I just said, the decision to acquire OGT fitted with our strate- gy and puts us in a privileged posi- tion. Firstly, it gives us preferential access to a top quality and stable supply of raw material, since we have access to one of the best har- vesting sites and to a sustainable harvesting procedure that ensures

ecosystem conservation and con- tinuous population renewal. Secondly, it brings us the knowhow and exclusive technology of Gentle Extraction, which preserves all the properties of fresh seaweeds. Therefore we are able to propose a fresh, sustainable and chemical free-product, with a natural colour and smell, which preserves all the active ingredients of fresh sea- weeds to be delivered to the farmer.


There are another couple of 'OGT-like' companies in Ireland. Do you think they will logically enter the same process of being acquired by a larger Group?

When we started analysing options to strengthen our position in the bio stimulants market, we got to know different companies that could, at first glance, be considered similar to OGT. However, none of these companies fulfilled our tech- nological, environmental or other requirements.

The bio stimulants market is on the rise and by gaining relevance, com- panies working in this business will also be strengthened, and their potential will increase. However, this does not necessarily mean acquisitions by bigger companies. The economic environment and laws and regulations also play an essential role, so there are many factors that intervene in such deci- sions. We will see what happens.


Looking at TRADECORP portfolio, it appears that Humics are still not part of the bio stimulants portfolio.

The latter only includes bio stimulants based on GLT (Gentle & Low Temperature) extract of seaweed and/or L- free amino acids enriched with essential nutrients.

Is that just 'historical' and due to change or is it a

deliberate strategic position? After all some of your humics are not earmarked to soil properties improvement!

Even if we could consider humics as part of our bio stimulants cata- logue, the truth is that they are a historic range in TRADECORP with their own identity. Humics occupy a special place in our sales and they have been behind many of our suc- cess stories.

Also, we have always considered humics more than a pure bio stim- ulant because of their well-known effect in three vitally important dimensions for crops: the improve- ment in physical, chemical and bio- logical aspects.


TRADECORP spends a substantial amount of money in R&D, close to 5% I believe. Within these expenditures are there some that are earmarked to the development of what can be called the 'third generation' bio stimulants, where the exploration goes to molecular level, far beyond 'ingredients'?

You are right, we do invest heavily in R&D, but this is the case of many companies in our market. We believe that over the next five to ten years we will see strong evolu- tions in the way agriculture itself is managed. From seed to harvest, going through applications meth- ods, mixture of products, etc., everything will change. We will need to adapt ourselves.

Indeed the next step is to delve into mechanisms at a molecular and genetic expression level, in order to develop a new generation of bio stimulants based on the deep understanding of plant physiology. Gaining more in-depth knowledge on the mechanisms of plants action against abiotic stress through molecular studies, paying special attention to the analysis of gene expression among other


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parameters, is one of our strategies for the development of new gener- ations of bio stimulants.


TRADECORP has offices around the world. Is China now close to the top of your agenda for starting to introduce some of your products?

China has launched an enormous agricultural programme to develop its food-independence. It is highly strategic for them as they rely mainly on food imports from other countries. As you also know, they have been investing in land for Chinese food production on other continents.

As such, China is already on our agenda. We do have a clear strate- gy in China with our partner. The Chinese market needs a specific market approach and adaptation of our range of products and mar- keting strategy.

As well as China, other markets in South-East Asia are also very important. A few years ago we decided to develop further in the region, so we strengthened our positioning with our distributors and recently opened 2 affiliates; one in Australia and one in Korea. We will keep investing in the region and dedicate more and more atten- tion to that part of the world.


You are not only the CEO of TRADECORP, you are also the CEO of the whole Agro Business Group of SAPEC, which includes plant protection where the Group is an important player in the Spanish and other neighboring markets. Aren't you now tempted to enter the developing market of bio control, at least the microbial and natural extracts part of it, through an acquisition?

TRADECORP nutrition now has its strategic focus on nutrition and bio stimulation of crops.


We work on the continuous improvement and enlargement of our catalogue of solutions, follow- ing the most demanding environ- mental, quality and efficacy requirements. In addition, we work on the development of more and better services for our clients.

TRADECORP also needs to be a leading technical research compa- ny, having strong empathy with the market and full skills to develop those novelty solutions expected by the market. TRADECORP will continue to invest in innovation, development and regulatory. The accumulated know-how we have from complex regulatory process- es, laboratory research and devel- opment, synthesis and formulation techniques coming from our crop protection sector serves as a cata- lyst to boost TRADECORP's ability to do better in its research targets at a faster rate.

Through our two core businesses, at SAPEC Agro business, we are committed to plant physiology and health, both regarding its protec- tion and its nutrition. Measured and appropriate nutrition ensures better growth and resistance, while targeted application of preventive and curative care products pro- vides a better life cycle.We have all the means to develop the bio con- trol market and, aligning it with our bio stimulant strategy, we will cer- tainly propose new ideas in this sector. When, how and with whom cannot be disclosed right now.


During this year a number of very large companies, world leaders in plant protection in particular, have joined EBIC to show their commitment to bio stimulants as a very serious business segment.

These moves intervene just a few years after they also entered the bio pesticides business. Which thoughts are these moves inspiring you?


It clearly shows that the bio stimulant market attracts all the players; from small startup compa- nies to large groups with strong market position in both fertilizers and pesticides.

Their joining into EBIC reinforces the bargaining of the consortium. I think it is highly positive to have them in EBIC and in the market. It will boost innovation and also shows the regulators that they must find a quick solution to today's unacceptable status quo. As you know, the European legisla- tion is at a complete standstill at the moment. We need to have a clear regulatory framework in the coming months or parts of the bio stimulant industry may fall.

In the absence of legislation, for instance, the sale of pure seaweed extract, a more environ- mentally friendly product than that is hard to find, is still illegal in France, absurd but true.

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One thing is for sure, the market as we know it today will change. Be prepared.

The European legislation is at a complete standstill at the moment. We need to have a clear regulatory framework in the coming months or parts of the biostimulant industry may fall.

other products of the range are manufactured: humic acids, liquid and foliar fertilizers but also bios- timulants and amino-acids, highly concentrated speciality suspen- sions and special soil condition- ers/correctors. And since 2014, Tradecorp has a production of sea- weed extracts in Ireland through the acquisition of OGT.


MORE THAN 5% OF SALES TURNOVER INVESTED IN R&D

The innovation is at the heart of the development strategy. Therefore the research is one of the priorities and Tradecorp spends more than 5% of its turnover on R&D.

The company has a strong R&D international department and its laboratories are among those cho- sen by the European Committee for Standardization for the validation of new analytics methods.

The research team also has devel- oped a strong partnership with a wide network of Universities and Research Centers around the world.


A FUTURE BIG NAME IN BIOLOGICALS?

To support the anticipated devel- opment, Tradecorp can count on a key asset: the support of its mother company Sapec and the synergies with the latter. The substantial increase in investments since its acquisition by the Sapec Group in 2000 marked a new stage in Tradecorp's path; as a result, the company has significantly strength- ened its market position and has experienced a remarkable interna- tional expansion. The Group is committed to expanding in plant protection and plant nutrition. Says Eric Van Innis, CEO ' We have all the means to develop the biocon- trol market and, aligning it with our biostimulant strategy, we will certainly propose new ideas in this sector'. Tradecorp is definitely another company that will have a name in the world of biologicals!

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