A return to roots for Agro-100

In 2019, Agro-100 began a major strategic shift. For the Joliette-based company, which specializes in manufacturing and marketing fertilizers for the agricultural sector, it was in a way a return to its roots: gradually stepping away from its role as a retailer and distributor to refocus on its manufacturing activities.

“Over the years, we drifted toward a business model that wasn’t really ours. We simply wanted to get back to our X,” says Stéphane Beaucage, President and General Manager of this SME, whose products are used in field crops as well as in vegetable, fruit and potato crops.

Fertilizer manufacturing has always been part of the DNA of this company founded in 1990. To meet other needs of its customers, however, Agro-100 had also become a distributor and retailer of seed, pesticides and certain fertilizers complementary to its own products. Today, the company is instead focusing its efforts on developing, manufacturing and marketing its own products through a network of retailers in Canada, the United States and Mexico.

A two-headed monster

Over time, Agro-100 gradually adopted a “one-stop shop” model to better serve its customers. However, the company realized that it was spending a lot of energy selling products that were not its own, with margins that did not compare with those of its own products.

This reflection led the organization to return to its core strengths. Agro-100 has always focused on innovation and can count on a team of agronomists, chemists and technicians who devote a large part of their work to researching and developing new products.

The decision to return to basics and build on its competitive advantages therefore came naturally. This refocusing also helped the company become more aware of its strengths and clarify its positioning.

Acquisition and growth

This reset also led Agro-100 to acquire Axter Agroscience, a Saint-Hilaire company specializing in liquid fertilizer products that include biostimulants.

This acquisition allowed Agro-100 to strengthen its presence in Eastern Canada and consolidate its position in a segment that is set to become increasingly important in the coming years: biostimulants.

Agro-100 also plans to benefit from a new plant, starting in September 2022, that will allow it to quadruple its liquid fertilizer production. The new facility, set up in an existing building in Joliette, is to be equipped with state-of-the-art equipment.

These changes also open up new market development opportunities for the company, particularly in Mexico, where Agro-100 has been present for about ten years and already generates nearly 10% of its revenue. The company also wants to strengthen its presence in Western Canada and in the northeastern United States, where it recently made inroads.

Three questions for Stéphane Beaucage

• What is the best advice you have received, or wish you had received?
  Clearly identify the organization’s strengths and competitive advantages, then focus on them. It is also important to set aside opportunities that are not related to these strengths and to favour a distinct business model.
  
  
• What motivates you as an entrepreneur and as a leader?
  The opportunity to move forward with people of integrity who are authentic, toward bold goals that allow everyone to reach their full potential.
  
  
• How would you like your journey as an entrepreneur to be remembered?
  The wish to have built a company that has become a benchmark in the fertilizer industry, by optimizing product research and development, formulations and modes of action. He also hopes to leave behind an organization that continually improves the expertise of its staff, maintains strong relationships with its suppliers and partners, and, through its recycling of fertilizing residual materials, contributes to a better environmental record.