Can you discuss Valent de México's recent news?

Our core focus is on sustaining food production within Mexico and promoting sustainable practices through strategic alliances and training programs for field technicians. Plant intelligence is one of our core divisions, which provides premium, high-profit products sourced primarily from third-party suppliers. Additionally, we are investing in the biocontrol market. This sector represents a US$104 million market in Mexico, with biological fungicides, insecticides, and growth regulators (PGRs) taking precedence. We hold a 17.6% market share, mainly in PGRs and insecticides. We are developing nine new products, expected by 2029, to drive additional growth. Some recent releases are being registered, with more in development in the US under FBSciences, a company we acquired. 

Where does Valent see growth opportunities?

In 2023, our revenue grew by 12%, establishing Valent as the fastest-growing company in Mexico's agriculture sector. The next closest competitor recorded around 4-5% growth, while the overall market remained stagnant. This growth is a testament to our practical business model and strategic initiatives. Our primary growth area lies in high-value crops with promising profit margins. Specifically, we are focusing on the ‘Big Three’ vegetables: cauliflower, broccoli and peppers, as well as tomatoes and strawberries. Our efforts extend to crops like watermelon, cucumber and various leafy greens, with strategic emphasis on table grapes and potatoes through our PGR products. A standout product, "retain," has become key in several regions. Our strategy prioritizes sustainable agricultural solutions and relies heavily on partnerships with large-scale producers and distributors to enhance efficiency and align with global trends. By fostering educational interactions with clients and distributors, we aim to grow awareness and market presence.

What challenges do you foresee for the agrochemical sector?

The Mexican government has adopted stringent regulations on crop protection products over the past six years. These restrictions often necessitate legal action, as we face rejections for product registrations or renewals. Fortunately, Valent de México has maintained a 100% success rate in securing protection rulings, which helps us stay aligned with our sustainability and product development goals, though it comes at a high cost. Recently, a government official suggested reverting to manual agricultural practices, which we consider unfeasible. Such a shift would reduce industry competitiveness by 40%, impacting businesses of all sizes. Drought is another pressing issue, as it directly affects productivity. Our role at Valent is to push for innovative product solutions that are both efficient and environmentally compliant, supporting food production in Mexico and beyond.

How does innovation help Valent tackle sustainability challenges?

Innovation offers boundless potential. Valent dedicates approximately 2% of our budget in Mexico to research and development, but our goal is to reach 6%. We specialize in offering biorational and biological products, including differentiated growth regulators that maximize crop protection and agricultural production while minimizing environmental impact, which is essential given the challenges of climate change. This commitment reinforces Valent de México's leadership in making agriculture more efficient and sustainable.

Sustainability guides our demand creation strategies. We work directly with distributors, technicians and influencers in key agricultural regions, promoting products and educating them on their applications. Demonstrative sessions allow us to show growers firsthand the impact of our products. This approach has led to significant sales increases, helping us recover from an initial drop in the first five months of our fiscal year. We recouped roughly 18% of prior losses by September, positioning us for growth. Considering security, regulatory and drought challenges, we also offer extended credit terms to our loyal distributors. This empowers them to be more assertive in promoting our products, ensuring crops get the necessary protection instead of relying on minimal intervention, which limits crop health and productivity. We aim to foster a culture of responsible, sustainable agricultural practices that contribute to Mexico's food production.

What are Valent de México's strategic priorities for the coming year?

Our primary goals include ensuring sustainable processes, exploring strategic partnerships with key distributors to retain and grow market share, executing impactful marketing programs, and optimizing resources.  On the demand side, we are building solid relationships with distributors and producers to support our premium portfolio and conventional brands. Staying ahead of market trends and anticipating challenges allows us to respond better to industry demands, including regulatory shifts and climate-related challenges.