Mati Mohammadi, a PhD student at Purdue University and graduate research assistant at Purdue's Center for Food and Agricultural Business, talks about the importance of trust in business relationships.
During our Ph.D years, Dr. Giri and I had unconditionally assumed that most crop producers are production and market savvy. Due to the nature of our respective research projects at the time, we never really got involved with extension activities, which would have exposed us to ground realities. After getting his degree, Dr. Giri headed off to the University of Central Missouri to begin his work as an assistant professor and it was there that he had the opportunity of directly interacting with farmers.
How much should agribusiness investors focus on the development of complex contractual arrangements with farmers when trying to implement a new product or innovation in the agricultural sector in developing countries?
I review and draft a lot of contracts. Many of these agreements are in the ag technology space, which presents unique drafting challenges. First and foremost, the subject matter of these agreements — personal information, data collection, license grants — is often foreign to farmers and agribusinesses. But there are other problems as well, which this post will address.
There are a variety of rapid-fire changes happening in the food and agriculture industry, including generational shifts and consolidations in farm business and agribusiness. With these changes and the rise in e-commerce and digital purchases, do relationships still matter in today’s agribusiness marketplace?
Marketers today don’t have the relatively simple tasks of informing, persuading, or reminding. Salespeople don’t have the relatively simple task of convincing someone to buy from them. For both of these functions, the challenges today aren’t about outgoing messages at all.
Knowing your customer base is more important than ever, especially when your customer base includes the complex operations run by today’s large-scale commercial agricultural producers.