3 Ways Helm Is Strategizing to Outmaneuver the Supply Chain Issues
Overseas shipments from Asia are taking twice as long as they used with 10x the cost. The third layer on top of increased time and expense is availability of ship space and containers. It’s an issue some crop protection companies aren’t seeing a light at the end of the tunnel for until second quarter of 2022.
But Helm is highlighting three strategic product developments it has made that has it as a willing and ready supplier right now for ag retailers and farmers.
“We have over two thirds of our products produced domestically, and we're able to manage that inventory much better than some of the others,” says Helm president Dave Schumacher.
He also credits the family-owned DNA of Helm at allowing leadership to take a long-term view on the business rather than being too focused on reacting in the moment to short-term crisis. This allowed the team to invest and innovate with two new products announced recently.
“We've been able to invest into our product portfolio and product development and bring new products to the market,” he says. “For example, Reviton is a product we brought to the market this past year with a unique, new active ingredient. It is a great product in the burndown market for broadleaf and grass control, so as there's pressure on the glyphosate supply and then also dicamba, 2,4-d, and glufosinate, Reviton is a great solution.
He notes while other products in crop protection have raised prices, Reviton is the same price in 2022 as it was in 2021. Sales in its launch year were double expectations, and he says supplies are strong for the year head.
The second product that Helm says is helping them outmaneuver the supply chain challenges currently is Katagon, a corn herbicide.
“Katagon does not have a glyphosate in it, but its two active ingredients with two modes of actions for post control in corn of broadleaf and grasses,” Schumacher says. “So both Reviton and Katagon will be available, and we look forward to partnering with retailers and growers to try those products out for next year.”
Applying the longer-term lens, Helm announced a partnership for a biological product portfolio in partnership with Alltech Crop Science.
“We're investing into additional innovation. And we're launching a Crop Advantage portfolio, which will be some biological based products so growers can enhance their soil health and enhance their crop growth,” Schumacher says.
This strategy by Helm leadership has helped them navigate the challenges of 2021 and set up as best as they can to support ag retailers and farmers in 2022. And it’s a strategy the leaders says they will continue to rely on.
“We are looking for long term relationships,” says Michael Kuhlmann Crop Protection Business Lead at Helm Agro. “We want to build up long term business. This is what our philosophy is about, especially in this year.”
Kuhlmann highlights the company has invested in its product development, business partnerships and also field staff by increasing their sales team to get closer to customers and ag retail partners.
