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MNP3703 ASSIGNMENT 1 SEMESTER 1 (2019) SOLUTIONS
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SUPPLIER RELATIONSHIP MANAGEMENT (MNP3703)ASSIGNMENT 1
SEMESTER 1 (2019)
ADDENDUM A: CASE STUDY FOR SEMESTERS 1 AND 2
Villa Crop Protection shares insights of agribusiness in Africa
Crop protection is key to limit crop risks and increase harvest potential. Villa Crop Protection is a company that sells
crop protection products and solution packages to the South African, as well as African agribusiness market. It is
essential for farmers to protect their crop to ensure its growing quality and a great harvest. Villa supplies several
products and does so in accordance with their product research and development philosophy. Villa is currently in close
cooperation with international, research-based manufacturers in the development of a number of patented products. In
an interview, conducted on the 2nd February 2017 with Elsa Esterhuizen from the television program Grootplaas, the
CEO and Managing Director, Dr André Schreuder spoke about Villa’s involvement in crop protection. “In essence we
focus on crop protection products, in other words, insect repellents, herbicides, fungicides, and then we try to develop
products in the mature phase of the product life cycle, therefore after the patent was released. The whole idea is to
tailor this product for the South African agriculture.” Another focus area is the development of unique formulated
product mixtures to ensure that customers have a strategic advantage in the market.
Villa aims to assist farmers with resolving the challenges they endure by providing them with data-driven insights. Such
insights include the “right product or programme” applied with the “right equipment” at the “right time”. Villa agronomists
started experimental locations across South Africa where they wish to demonstrate their solutions to local weed, pests
or disease problems. These locations have been trademarked as “Answer Plots”. The goal of the Answer PlotsTM is to
convey up-to-date innovation, technology, training and education to the farmers. In an interview conducted on the 19th
January 2018, the national Marketing Manager, Mr Marius Boshoff, expressed his excitement about the Answer
PlotsTM that could simplify the lives of crop producers significantly. He said: “At Villa we do about 900 field trails per
annum that provide us with approximately 80 000 points from where we can extract data. It is always a challenge as to
how you convey this type of data to farmers and the type of format you create for it. Therefore, we received this
concept of Answer PlotsTM from our partner in America. They have roughly 200 areas where they do these trails.” Villa
started to conduct their trials in five places based on the seasons of South Africa. The trials are piloted specifically in
the northern regions in the summer rainfall area involving corn, soya and sunflowers and the like. When descending to
the Cape the trials involve small grains and canola and in the future, it will involve fruits too. “But we find that every
season is unique. We had a nice wet season in the east and then cold, and now it is hot. The past two years have been
very dry. These opportunities give you the ability on every “ansible site” to experience your area’s problems, to share
them, and to ask questions and for advice.” Ansible is software that automates equipment or processes.
The ansible sites are set up to automatically collect data. “We feel that it is immensely important to give farmers the
opportunity to experience these things in the fields, while you have an agriculturalist and experts in the area that can
share the information with them in a meaningful manner, rather to have them experience ‘death by PowerPoint’.” Death
by PowerPoint is a term coined for a situation where a presenter goes on and on, while he or she has lost the attention
of the audience.
Page 1 of 8
,Therefore, Boshoff implies that it is more important for a farmer to be involved in the field, than to listen to a load of
information that is ill presented.
The concept of Answer PlotsTM appears to be able to resolve questions that the growing need in agriculture poses.
However, it seems that there might be factors that are difficult to measure that may also affect the productive growth of
harvests. Dr Anthony Onoja, from the University of Port Harcourt in Nigeria has recently visited South Africa and shared
his research on growth trends of cereal. He conducted research to determine which factors of governance and the
environment have impacts on the long-term productivity growth of staples in the Southern African region. The university
collected data from 15 Southern African economies over 12 years on the total output of cereal, as well as inputs,
comprising of labour, land area, school enrolment, political stability index, government expenditure on research and
development (R&D), trade openness, temperature change, and water access. The results revealed that cereal
productivity was increasing between 2002 and 2013, albeit slowly, with significant variations among the economies.
South Africa ranked at the top on the subject of productivity, while Mauritius ranked at the bottom. From 1961 to 2013,
South Africa’s average harvests exceeded the African average, but was still far below the international average. The
results also revealed that, ultimately, a change in temperature, governance factors, especially quality of human capital,
as well as government expenditure on agriculture R&D, significantly influences the overall productivity growth of
cereals.
Schreuder admitted that there are many challenges in the agribusiness market and echoed some of Onoja’s results. “I
think there are four problems that I want to highlight. Firstly, technology. We have to make sure that our producers have
the best technology in the world. In many cases, we farm in a dessert. We do not have government subsidies and our
producers need to compete internationally. Therefore, technology is very important. Secondly, research. I think we
conduct too little research. If you compare us to countries that we need to compete with, much more research should
be conducted. The third challenge is the most difficult to address and that is expertise. We need a new generation of
agriculturalists and I believe that we do not do enough to train the new generation of agriculturalists. Fourthly, which
goes hand in hand with that is investment in agriculture. We need to increase food production with 70% in the next 20
to 30 years. We cannot do it if we do not invest.”
The question arises, exactly how can these issues be addressed? “In 2015 we got an investor, Land O’Lakes from the
USA, a Fortune 500 Company”, Schreuder said. “We have access to all their technology. That is an example of where
Villa needs to acquire the technology and develop it locally. Further, we try to determine what the need is at ground
level from a crop protection point of view. We then go to a network of 40 suppliers that we have all over the world, get
our hands on the technology, bring it to South Africa, and develop it to address the need as best as possible. When we
talk about research, something that I am very worried about- at Villa we spend about R40 million on research
concerning crop protection products per annum. That entails that we do about 900 fully replicated trials throughout the
country.
Then we spend about R1,5 million at universities through bursaries in order for them to assist us in conducting relevant
research. Expertise, again a great challenge. At Villa we have the Villa Foundation where we will spend R10 million this
year, which covers several aids, from Christian contributions where it is needed, to education, from school level to
university and training. We also have an internship program. Typically what we want to do is after we have identified
needs, we will go to universities, to their top students, we provide them with bursaries and they do research on the
topics that was identified from those needs and then those students come and work for us.” Furthermore, Villa works
with other supply partners in close collaboration with high levels of trust between the organisations. Villa has identified
Page 2 of 8
,several needs of suppliers of crop protection compounds and aims to match these needs with their capabilities. Most
importantly, suppliers need easy access to the South African market. Villa is able to provide them with one account that
provides access to the whole of South Africa, of which they currently command approximately 20 percent of the market
share. Similarly, suppliers need complete market coverage. Villa is structured in such a way that products can be
channelled to all dealerships to supply the whole market. Suppliers also need a distributor with excellent knowledge of
the local market, which Villa fulfils by their years of experience and intimate knowledge of the market. Furthermore,
suppliers need financial security and Villa has proved themselves with an impeccable record over the years. In addition,
suppliers aspire to develop products for particular local circumstances. Villa makes every effort with a team of highly
skilled scientists that can develop trial protocols and coordinate field trials through a contracted team of experienced
field trialists. Suppliers want a proper logistical infrastructure that Villa is able to offer, because of their vast knowledge
of the importation and clearing requirements for products and active ingredients. Finally, the need of product
formulation is met by Villa’s ability to process raw materials or semi-finished goods for the supplier at their specialised
facilities (also termed toll formulation facilities). The range of final products include herbicides, insecticides, fungicides
and adjuvants. A future project includes the formulation of foliar feeds, which is a method of fertilising plants with liquid.
In addition, Villa continuously investigates the possibilities to secure more patented products to develop in South Africa.
Onoja recommended that Southern African countries should prioritise investment in human capital and technological
innovation by increasing budgetary allocations to education and agricultural R&D. It is of utmost importance that
regional and individual governments should increase efforts to fund projects that will reduce the negative impacts of
climate change and build the resilience of farmers for sustainable food production. But in the interim, Villa continues
their trials on the Answer PlotsTM to award farmers the opportunity to observe what is happening in their area.
“However” Boshoff said, “it expands beyond that to anyone who is involved in the agricultural input area, also our
student clients, our distributors, our agents, and of course, it is for anyone who is interested to attend. In fact, we have
a group of rural farmers who attend. Even other states in Africa sends visitors.”
References:
Esterhuizen, E. (presenter). 2018. Villa Crop kuier op Grootplaas. (2018-01-19). Centurion: Plaas Media.
[Television broadcast]. [Online] Available from: https://agriorbit.com/villa-crop-kuier-op-grootplaas/ [Accessed: 2018-07-
23].
Esterhuizen, E. (presenter). 2017. Villa Crop Protection op Grootplaas. (2017-02-02). Centurion: Plaas Media.
[Television broadcast]. [Online] Available from: https://agriorbit.com/villa-crop-protection-op-grootplaas/ [Accessed:
2018-07-23].
Kriel, G. 2015. Combating herbicide resistance. [Online] Available from:
https://www.farmersweekly.co.za/crops/field-crops/combating-herbicide-resistance/ [Accessed: 2018-07-24].
Ngcobo, G. 2018. How stable are our staples? [Online] Available from:
https://staff.unisa.ac.za/sites/intranet/default/News-&- Communications/E%E2%80%93News/How-stable-are-our-
staples%3F# [Accessed: 2018-08-01].
Villa Crop Protection (Pty) Ltd. 2017. Company profile. [Online] Available from:
http://www.villacrop.co.za/wp/wp-content/uploads/2017/01/Villa-Corporate-Brochure- Electronic.pdf
[Downloaded: 2018-07-19].
Villa Crop Protection (Pty) Ltd. 2018. Villa Solutions and Answer Plots TM – Growing knowledge. [Online] Available
from: http://www.villacrop.co.za/answer-plots/ Accessed: 2018-07-19].
Page 3 of 8
, Question 1
Which model of leadership do you believe Villa Crop Protection follows? (10)
In your answer, you should:
- indicate the model type, (1)
- clarify each of the features of that model type (3), and
- provide information from the case study for each one of the features that you have identified to
substantiate your answer. (6)
Villa Crop Protection follows a transformational leadership.
Villa has a long-term vision that is shown in the outlook that food production needs to increase with 70%
in the next 20 to 30 years. It shows that Villa is not only focussing on immediate results. Villa has also
planned the next project of foliar feeds.
Villa controls situations by empowering people to control themselves and manages problem- solving. Villa
regards it as immensely important to give farmers the opportunity to experience conditions in the fields,
while an agriculturalist and experts are in the area that can share the information with them in a
meaningful manner.
Villa’s outlook is to change the current situation. It turns to a network of 40 global suppliers of
technology, to develop it to address the need in South Africa as best as possible
Villa coaches and develops people. Through the Answer PlotsTM, Villa is able to share their research
findings with farmers, student clients, distributors, agents, rural farmers and visitors from other African
countries. The research is back-up by practical applications in the fields.
Villa maintains a culture that challenges and changes the current situation. Villa constantly does research
on tailor their current products for the South African agriculture market. The start of the Answer PlotsTM also
demonstrates their solutions to local weed, pests or disease problems.
Villa derives its power of 20 percent of the agribusiness market share from their influence on a network of
relationships between 40 global suppliers, as well as more local suppliers, and farmers.
Page 4 of 8
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