Welcome to Farm Breeze International!
Farm Breeze International is your reliable business partner for specialized agricultural crops and food ingredients. We export to the China market and offer innovative business solutions to our customers and suppliers. We provide our trade partners with a customized package of products and services. We are committed to create value for them because we believe our success depends on their success.
With the prices becoming more and more transparent in the global market, specialty crops and food ingredients are turning into commodities, resulting in intensified price competition, shrinking profit margins and heightened operating risk for participants in the international agri-food value chain. Facing these challenges to the international agri-trade, we ask ourselves how to create value for our suppliers and customers in the new market environment. Our answer to this question is to provide our trade partners with unique services to fulfill their distinctive needs.
While any agricultural merchandiser can claim with little cost that they provide excellent services, we take serious measures through a so-called deep penetration strategy. Today, most companies in the markets of specialty crops and food ingredients adopt a global marketing strategy. While this approach can quickly generate sales volume through global outreach, it lacks the ability to thrust into a specific market deeply because limited resources are stretched thin worldwide. Contrary to the global marketing approach, our deep penetration strategy concentrates resources on one market to achieve otherwise unattainable depth in customer relationship and service innovation. We choose the China market because of its size, potential and complexity, which make our long-term, concentrated investment necessary and worthwhile.
We believe a lean, high-power marketing team is the key to create value and reduce costs. From day one, our deep concentration strategy is guided by this philosophy. We have developed an extensive business network in China through local partners, trade associations, government organizations, and alumni networks. Our management spends over half of the time in China. More importantly, our management is conversant in the Chinese business culture and good at developing not just business relationship but also personal friendship with Chinese clients. These intangible assets constitute our advantage in the China market.
The deep penetration strategy allows us to provide four distinctive services to suppliers who are interested in the China market.
Credit risk control. To suppliers that sell their products to emerging markets, credit risk is always a concern. Default happens when customer’s financial condition deteriorates, when local currency devalues, or when commodity price slumps. We have rich experience in dealing with the credit risk of Chinese buyers. We are expert in evaluating the financial health and business integrity of local companies. We actively use local third party as references and guarantors. We constantly monitor and forecast the dollar-to-renminbi exchange rate changes. These measures minimize the credit risk ex ante. In case default occurs, we are good at reselling products to other buyers in our large customer portfolio or renegotiating with the defaulter contract terms most favorable to us. By directly transacting with us, suppliers are insulated from the default risk of Chinese customers. Moreover, unlike foreign buyers, we are a US company, and thus all business contracts with us are fully enforceable under the domestic jurisdiction.
Crisis management. We understand that suppliers transact with not just us but also other China-related buyers. Although we hope the business with other buyers is as safe as that with us, it is not completely unlikely that suppliers get stuck in troubled deals with other buyers for various reasons. In such event, we are willing to help suppliers to clean the mess. Our ability to help out comes not just from the native language we speak or our year-round presence in China but also from our invaluable connections in country and our superb people skills that make things click. Furthermore, the large customer pool we build in China is certainly helpful in case resale is needed to get out the crisis. In short, we are able to solve the Chinese problem in a Chinese way.
Market information feedback. Predicting short- to medium-term price movements is critical for suppliers to determine their selling strategy. We directly communicate and transact with end users in China. As a result, we have access to firsthand information about the market. The recency, relevancy and granularity of the demand-side information we possess are unparalleled. We timely feed our suppliers with private information to improve their decision making. We also have unique view about the market trends in the next three to ten years, which are important for suppliers’ strategic planning. With the Chinese economy entering into the “new normal” and the country’s demography undergoing fundamental changes, the consumption patterns of the Chinese people are rapidly changing and the traditional distribution channels of specialized agri-products are being disrupted. We maintain close ties with key players in the industry and develop our insight about how the China market will evolve. We share our knowledge about this fast changing market with suppliers.
Production coordination. The traditional business model in the agribusiness is supply driven. Farmers and processors focus on reducing the production cost, and sales force tries to clear the inventory at the best prices available. The new, demand-driven business model requires producers to place attention on the market and tailor the production according to market needs. While this approach adds value to production and enables suppliers to charge a premium price, it needs a clear understanding of the specifics of existing and latent demand and requires sufficient volume to justify the costs of production change. Our clients are end users in China and we know the demand details of each of them. We can sort and group their demand types to provide clear guidance to suppliers; we can bundle their needs to create economy of scale; we can negotiate term agreements with them to ensure sustainable demand. Overall, we can help coordinate the production according to China market demand specifics and create a mutually beneficial, interactive relationship between suppliers and customers.