Interview: Seeds of Monsanto’s success in Korea market

Monsanto Korea focuses on agriculture, as its main business is the development of vegetable seeds. Michiel de Jongh stepped in as chief executive of Monsanto Korea last October. After joining Monsanto in 2004, he has been working in various regions including Europe, the United States and Africa.

Q. How big is the Korean market for Monsanto?

A. Korea is the biggest vegetable seed business of Monsanto’s operations in the Asia-Pacific region. Monsanto has strongly believed in the growth potential and competitiveness of Korea’s market and continued to invest more than 20 percent of total sales annually in our seed production facilities to upgrade them with the latest technology in terms of seed upgrading or seed treatment. As the result of those efforts, Monsanto Korea has remained one of the largest brassica seed producers in Korea because it ensures consistently high seed quality levels.

Did Monsanto Korea have any difficulties adjusting to Korea?

Monsanto Korea serves the specific needs of Korean farmers and customers.

So when Monsanto Korea entered the market, we tried to figure out the needs of Korean farmers, but it was quite difficult and took longer time than expected. Developing seed products itself is a really lengthy process. On average, it takes eight to 10 years to bring one new product to market, and it costs approximately $100 million throughout the whole process.

What is Monsanto Korea’s strategy?

We aim to become the best vegetable seed company in the eyes of our customers. Technological innovation and investment in research and development are cornerstones of our company, and Monsanto is unique among its competitors focusing solely on agriculture and we are developing better products for our farmer customers.

In Korea, we have R&D centers in Jochiwon and Haenam. We have state-of-the-art manufacturing facilities, and this leads to vegetables with better quality and better flavor and vegetables that are more resistance to diseases. It also leads to higher productivity in the greenhouse and in the field.

Korea was a predominantly rural, agricultural nation but has turned into an urban and newly industrialized country. The urbanization of the country has been driving young people away from the countryside. What is your view on this trend?

This was surprising to me coming from Argentina, where agriculture plays such a predominant role and really attracts young talent. In Argentina young people take pride going into agriculture, and rightly so.

I think young people need to see the bigger picture when it comes to agriculture. Agriculture is at the center of human civilization. The question of how we are going to feed the growing population in the next decades is fundamental. With the global population expected to grow by 40 percent in the next few decades, agriculture will need to become more productive and more sustainable in order to keep pace with rapidly increasing demand. Many experts agree we will need to grow as much food in the next 50 years as we did in the past 10,000 years combined if we are to sustain our planet. I think young people should be aware of this when they make a decision against or in favor of agriculture.

What strengths does Korea have in the development of seeds?

Although young people do not go into agriculture, Korea has a lot of talented resources in the field. Also, the market in Korea is very demanding: The professionalization of the farmer leads to a demand for higher-quality seeds, which in itself stimulates development. Also Korea is quite open to learning from other countries, although this could be stimulated a lot more.

When compared to the agricultural industries in other countries in the region such as Japan, China or even Australia and New Zealand, Korean farmers are faring significantly better due to the possibilities offered to them, such as the very high skill level of Korean vegetable growers and business, efficient produce supply chains (cold chains) and continued strong government support for training. Additionally, they benefit from the upgrading and modernization of farm operations, the promotion of Korean produce abroad as well as provisions of seed funds.

What type of agricultural produce does Korea need to focus on?

Korea should focus on high-value produce and seeds. With its limited amount of land, Korea can never play the role of commodity or bulk producer like Argentina or Brazil. High-tech is the game, similar to how Korea is developing itself in other industries. The Netherlands is now renowned for its state-of-the-art agriculture. In fact, many people refer to it as an agricultural miracle.

Source: joongangdaily