Here’s a one-on-one interview with Steve Coulter, Senior Vice President at Koch Agronomic Services, upon the completion of the company’s acquisition of the North American micronutrient portfolio from Compass Minerals.
What’s the status of the acquisition and integration?
The acquisition is complete. The integration is progressing very well. On day one we got orders, so we’ve been producing, shipping and taking orders since then. Compass has done a nice job working with us during the transition–they’ve been very professional in helping us.
If you had to sum up why this portfolio was a good fit for Koch Agronomic Services, what would you say?
When we looked at the micronutrient products, we were looking for growth and for solutions that complimented our existing nitrogen stabilizer products. We’ve worked to narrow our focus when it came to evaluating opportunities, knowing where we, as a business, can execute well. We were looking at some other areas in ag, but this was right up our alley. There are some synergies and we have an overlapping customer base.
What do you want farmers to know about this acquisition?
We’re open for business. From a Koch Agronomic Services (Koch) perspective, we’ve been focused on nitrogen and nitrogen efficiency. We are entering this to be a leader–not a second- or third-tier player. We want to expand portfolios, make better products, and expand formulations designed to help growers across the globe.
What do you want retailers to know about the new Koch Agronomic lineup?
We’ve built a reputation to do what we say we’re going to do. You don’t need execution in the off season, you need it during the season and our customers can expect the same level of support and efficiency they’ve experienced with our nitrogen stabilizer products. We’re excited to get out there and talk to customers and see how we can work together.
What does this mean for Koch’s focus on macronutrient products going forward?
Koch will continue to look at acquisitions and invest in research and production. This acquisition allows Koch to establish a platform for future growth into additional macro and micronutrient solutions and adjacent product categories, to better support growers no matter what their nutrient needs may be.
What does this mean for Koch’s micro lineup going forward?
On the day we did the final announcement and welcomed the new employees, I shared that we’ll look back at this as the start of the next phase of growth. It’s another platform we can build from.
First, it shows that Koch wants to grow. It’s much easier to then have the conversation with customers about what they are missing, products that will solve their problems and how we can help fill the void.
Second, for those companies with product solutions who aren’t getting traction and not able to make the inroads, Koch can help get them connect them with customers—so it may be how can we work together to deliver a solution to the industry.
What does this acquisition mean for the distribution of Koch Agronomic products?
What I’ve found with distributors is they are looking for simplicity. The more solutions we can bring and they put their trust into one company, it’s makes us closer to being a one-stop shop to getting the products to the customers that need it.
And what’s the division’s intentions for the biological space in the future?
We’re willing to look at any way to enhance plant nutrition. What we see on the biological side is there are a lot different opportunities, but we need to bring something the customer values. And some customers are still searching for what that true value is. I think there’s a lot of great fits with our products that complement one another and help create that solution.
How does this acquisition influence future R&D?
From our side, we’ll continue to find and develop innovative solutions for different grower needs. Koch has a history of taking and evolving products—Agrotain was on patent, and then we created formulations to improve on that—and created Anvol with the patented molecule, Duromide.
Our team is strong at taking current formulations and making them better. And we’re excited to grow from nitrogen management to nutrient management.
What’s the focus as Koch Agronomic Services expands its nutrient focus?
We want to enable every single pound of nutrient to do what it needs to do. We focus on that every day and will continue to do so. We are strong proponents of the 4R Nutrient Stewardship framework, and we want inputs to be as efficient as possible and we’re working to provide solutions that help enable that efficiency. We also want everyone to understand the science behind the solution.
What’s next for Koch Agronomic Services?
Koch will continue to find, develop and introduce innovative solutions that our customers find valuable.
We’re looking forward to the Compass Mineral legacy products to get us more into the specialty space. Historically, we haven’t been a huge player, but these products open that door to us. Also, we’re excited about the opportunities with Rocket Seeds, which gives us an opportunity to focus on nutrition delivered with the seed. This is a gateway for us to be in the seed space and provide a solution to growers that can complement the legacy Koch product offerings.
What’s the biggest need in the market for nutritionals today?
Efficient use of resources is the opportunity. You have inflation, and raw materials are tight, you need to be more efficient. At the end of the day, the majority of farmers are good stewards at heart. Truly they want to conserve their resources. And they want to pass on their ground in a better place than how they acquired it. That’s what we want to do. As the world continues to expand in population, we definitely want to have a role in creating the highest yield possible with the least amount of resources.
Are there more acquisitions on the horizon?
I’d say yes. But we also want to grow organically as well. We think we’re well positioned for growth.
