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Case Study: How Farm Hannong rapidly introduced its brand to the international market
Oct. 31, 2019
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Mickey Shan
Senior Editor; China Marketing Director
Dongbu Farm Hannong, now known as Farm Hannong, was founded in 1953, and is the largest comprehensive agricultural company in Korea. The company's crop protection business ranks first in the agricultural industry in Korea, accounting for nearly one third of Korea’s crop protection market. Its products are sold to China, Japan, Southeast Asia, Europe and America. In January 2016, 100% stake in the company was acquired by Korean LG Chem at a cost of KRW515.2 billion (approximately US$430 million) and the company's name was changed to Farm Hannong. In the same year, Farm Hannong witnessed an asset valuation of $966 million and achieved sales of $489 million, including $221 million generated from the crop protection business.
After being acquired by LG Chem, Farm Hannong has grown and developed significantly in the international market, supported by LG Chem's chemical strength. Focusing on its dominant metamifop and flucetosulfuron, as well as the latest creative herbicide, Terrad’orⓇ, Farm Hannong presented its brand to Asia and America in just two to three years with intensive promotions in Malaysia, Thailand, Japan, India and Sri Lanka. The products of the company have also caught widespread market attention.
Metamifop formulation product introduced in Southeast Asia for control of paddy rice weeds
Metamifop is a herbicide developed jointly by Farm Hannong and the Korea Research Institute of Chemical Technology used to control paddy rice and lawn weeds, with low toxicity and an excellent control effect. Since it was released to the market in 2010, metamifop has been exported to China, Japan, the Philippines, Indonesia, Sri Lanka, Vietnam, Kampuchea and Malaysia and has filed registration application in India, Thailand, Brazil, Russia, Kazakhstan and Uzbekistan. In November 2016, registration was granted in Ecuador, followed by its registration in Columbia in April 2017.
In 2017, after a three-year market trial with proven results, Farm Hannong launched its Pyzero (10% metamifop) in Malaysia for application to the paddy rice market of Thailand, which is also the first time metamifop is entering the international market with the brand of the company. Farm Hannong is fully cooperating with local Malaysian partners in market promotions with the objective of capturing over 15% of the market of post-emergence foliar treatment for paddy rice.
The release of Pyzero to the Malaysian market is of great importance to Farm Hannong, and indicates the company’s efforts to integrate a differentiated formula technique with excellent active ingredients to establish metamifop as a high value-added export product.
Ever since, Farm Hannong began the intensive promotion of metamifop in the international market. In March 2018, the company successfully launched its TODOME MF to the Japanese market, which is a product based on the active ingredients of metamifop, being presented in two formulations, 4.9% EC and 1.35% GR.
In December 2018, Farm Hannong released its Pyzero to the largest rice exporting country, Thailand, and it proved effective in controlling resistant barnyard grass and moleplant seeds. This resulted in the product being highly regarded by dealers and farmers, and the sales of Pyzero are expected to double in 2019.
In September 2019, Farm Hannong released the other metamifop-based herbicide, Critel®, in the Indian market, which has an extremely low phytotoxicity, is selective on paddy rice with an excellent control effect. The product is capable of preventing and controlling barnyard grass at the 5-leaf stage, as well as the moleplant seed, which is resistant to most existing herbicides. The release of Critel® to India, which is a vigorous market with great potential, ensures the rapid growth of the international business of Farm Hannong.
Creative Terrad’or® boosting international business growth
Tiafenacil is a fast-acting non-selective herbicide developed after ten-year-long efforts by Farm Hannong, being presented by the trade name, Terrad’or®, and is positioned by the company to be a “global non-selective herbicidal solution”. Tiafenacil inhibits the formation of chlorophyll and produces active oxygen to destroy cells, thus preventing and killing weeds in a fast and effective manner. The product is resistant to rain wash and is effective to control glyphosate-resistant weeds, causing no harm to humans and animals. In July 2019, Tiafenacil won the Korean Innovation Award 2019 issued by the KSA, having also been accredited to the KS, ISO and JIS standards.
In 2018, Farm Hannong first released in the Korean market Tiafenacil and Terrad’or PlusⓇ,which is a mixture with glyphosate, and is a non-selective herbicide used in fruit orchards and non-crop cultivated lands. The product boasts of a broad range of application with long-lasting effect, being effective in the control of glyphosate-resistant weeds such as three-colored amaranth, ragweed and dayflower.
Farm Hannong has also released its Terrad’or Gold, which is a mixture of Tiafenacil with glufosinate used in row crops, fruit orchards and non-crop cultivated land for the control of the tough Acalypha australis Linn, purslane and filed horsetail. The two products are sold widely in the Korean market, after being highly recognized in Korea.
In April 2019, Terrad’orⓇ was promoted in the international market for the first time. Following its registration in Sri Lanka in January, Farm Hannong quickly allied with Sri Lanka’s local company, Lankem, to hold a launch ceremony in Colombo to release Terrad’orⓇ ME (active ingredient being Tiafenacil) for application on paddy rice and non-crop cultivated land as a weed treatment prior to planting. As paraquat was banned in Sri Lanka in 2010, rice growers in Sri Lanka were suffering from the problem of weeds for a long time and had to undertake cultivation twice. Terrad'orⓇ can effectively control glyphosate and glufosinate-resistant weeds, where a one-off application prior to sowing will enable long-lasting control, which in turn can help farmers reduce costs and increase yield.
At present, Farm Hannong is making efforts to open up its Terrad’orⓇ market. The company has been granted a patent in 29 countries, including the United States, Japan and China for the product, Terrad'orⓇ. The trial and proven performance in the targeted countries such as the United States, Australia, Brazil and the South Asian countries have been satisfactory. Branches or subsidiaries have also been established in the above countries. The territory of Terrad’orⓇ is also expected to increase in the years ahead.
Differentiated Development, Advanced Concept
The crop protection concept of Farm Hannong is quite close to that of Japanese companies, where research and development are focused on high quality, environment friendliness and the reduction of labor. From the case studies above, it is clear that what ensures Farm Hannong is able to promote its products to the international market in a short period of time is its precise market positioning and differentiated development of formulations. Certain active ingredients are presented in different formulations in different methods of application, which allows for higher efficiency of application and ensures innovation in the industry.
Farm Hannong adheres to a proactive business strategy that prevails over the existing main business of the company, which is very inspiring to the industry. Although Farm Hannong currently still works on chemical pesticides, the company has made considerable investments in the development of biopesticides, as the company is growing toward the objective of emerging as a leading green biopesticide manufacturer.
If your company wishes to share with us its distinctive business positioning and highlights over product development or market exploration, we welcome you to contact:
Mickey Shan
mickey@agropages.com
+86 18705817985
Source: AgroNews
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