L E A D E R S

P R O F I L E
22 NEW AG INTERNATIONAL
At a time when consolidation,
mergers, joint ventures, etc. are
the keywords in the increasingly
competitive speciality plant
nutrition market, there are not so
many new emerging global players
in this market. The Madrid based,
Belgian owned company
TRADECORP is an exception.
Founded in 1985, purchased by
the Sapec Group in 2000,
TRADECORP is increasingly
making its presence felt in a
number of key markets around the
world. Not only the company can
base its growth on an increased
production capacity for the
EDDHA chelating molecule but it
also has successfully developed a
number of other products such as
humic acids and biostimulants.
At the same time, a powerful
marketing and promotion policy
has been put in place to serve
product positioning and
development. In 2003, the
company already posted sales of
close to Euros 18 million. Where
does Tradecorp want to go? New
Ag International met with Eric Van
Innis, TRADECORP's CEO.
T
he international exposure of
Tradecorp only dates from the
mid ninetties. However the com-
pany already had a record of
achievements before that date.
Tradecorp was founded in 1985 by
two Spanish private parties aiming at
marketing speciality fertilizers and
micronutrients in the growing
domestic market. Two years later, it
establishes the Albacete factory,
becoming the first Spanish company
to produce humic acids. In 1994, it
installs the first low biuret urea pro-
duction capacity in Spain. In 1997, it
acquires the Sanchidrian (Avila) fac-
tory, strengthening its competitive-
ness in the chelates market. The
same year, it launches its interna-
tionalisation with the establishment
of a regional office in Cairo, Egypt.
Since then and its take-over by the
Sapec Group, the company has had
continuous expansion with a two
digit growth figure every year.
ULTRAFERRO: THE COMPANY's
SIGNATURE IN THE EDDHA
CHELATE MARKET
Tradecorp runs two exclusive pro-
duction plants in Spain. While the
Albacete factory is dedicated to liq-
uids and serves as the main logistics
interface, the factory in Avila
(Sanchidrian) is devoted to the syn-
thesis and production of microgran-
ulated chelates, in particular the
EDDHA molecule. Tradecorp sells its
branded Iron EDDHA product
(ortho-ortho, 4% w/w Iron, 100%
chelated) under the name Ultraferro.
The company has substantially
increased its production capacity
and it belongs to the top producers
in the world. In the same factory,
Tradecorp manufactures a series of
EDTA chelated products (the
Tradecorp range) and the
Tradecorp AZ range, which is a vari-
ety of a la carte TE mixtures of
EDTAs.
The other factory, in Abacete, is the
place where the other products of the
range are manufactured: humic
acids, liquid and foliar fertilizers but
also biostimulants and amino-acids,
highly concentrated speciality sus-
pensions and special soil condition-
ers/correctors.
Altogether, the company has a cata-
logue of about 40 speciality prod-
ucts.
A FIVE PILLAR CORPORATE
STRATEGY
Five pillars constitute the foundations
of the company's strategy. Firstly the
company's catalogue is and will
remain restricted to high added value
speciality plant nutrition products. It
will not include any commodity fertil-
izer. Second, the company will con-
tinue employing only highly profes-
sional, multinational staff -today
already close to 15 nationalities are
represented within a global staff of 90
A new emerging global pla
A new emerging global pla
Tradecorp:
people. Thirdly, research and devel-
opment are a priority in the compa-
ny, with a target of minimum 10%
new product introduction every year.
The fourth pillar of development is
the high quality and differentiation in
L E A D E R S
P R O F I L E
products. Last but not least - and this
is certainly the most visible pillar for
the observer, the company will con-
tinue expanding internationally.
Today the branded products of
Tradecorp can already be found in
more than 40 countries of Europe,
Central and South America, the
Middle East and Asia. The company
has its own representation offices in
Egypt, Brazil, Mexico and Belgium
and has recently established sub-
regional offices in France, Italy,
Morocco, Poland and Lebanon.
VERY AMBITIOUS TARGETS
The perspectives of the micronutri-
ent business for this year and the
next two years are the maintenance
of the sales progression, at a pace of
more than 25% per year. The com-
mercial team of about 30 people at
the moment (it was doubled in
2003!) is likely to continue increas-
ing, between 15-20% annually dur-
ing the next 3 years. Taking into con-
sideration the 4 main geographical
areas where the company is present
(Europe, Middle East, Mexico and
Brazil), only Brazil is still on track for
consolidation but the sales structure
has only been truly operational since
the end of 2003.
Despite the impact of external fac-
tors, which have limited further
growth of the company in 2003,
Tradecorp management is confident
in the future as those figures take into
account some non-recurrent factors.
To support the anticipated develop-
ment and the increasing needs in
working capital, Tradecorp can count
on a key asset: the support of its
mother company Sapec and the syn-
ergies with the latter. The market is
watching with interest, sometimes
with admiration, sometimes with fear,
the highly professional and ambi-
tious development conducted by the
new emerging global player!
yer in speciality markets
NEW AG INTERNATIONAL 23
yer in speciality markets
All pictures courtesy of Tradecorp
L E A D E R S
P R O F I L E
24 NEW AG INTERNATIONAL
Since the SAPEC Group
acquired Tradecorp in year
2000, the company seems to
have grown in an impressive
manner. In 2002, the turnover
was about Euros 13.3 million.
In 2003, it went up to 17.6 mil-
lion. Are you expecting the
same pace in the growth for
2004?
Indeed, since 2000 the position
of Tradecorp has been reinforced
after being purchased by the
Sapec Group, and that can be
easily seen in the evolution of our
sales figures. That year,
Tradecorp registered a turnover
of EUR 4.2 million and, last year,
we reached EUR 17.6 million,
which means a growth higher
than 60% annually. This growth
is the result of the synergies
between both companies. Thus,
we have confidence in our
capacity to consolidate and
broaden our position in the main
world markets this year, and on
the medium term, harvest the
results obtained by following the
strategy we have followed in the
past three years.
In the micronutrients,
Tradecorp belongs to the
restricted club of producers
of EDDHA molecule, the most
strategic component in the
iron business. What is your
current production capacity
for EDDHA chelates and do you
expect this business to grow
at an acceptable profitability
level?
Our Plant in vila (Spain) is one
of the few centers in the world
that has the appropriate technol-
ogy to synthesize and manufac-
ture the EDDHA chelating agent.
In the past years, our production
capacity has been multiplied by
six and we have improved the
synthesizing and manufacturing
process related to Ultraferro, iron
EDDHA chelate, improving its
quality and the contents in the
ortho-ortho isomer. It is impor-
tant to highlight that Tradecorp is
one of the top worldwide produc-
ers of EDDHA and is able to sat-
isfy current needs and comply
with the strategy set on the
medium term. We are making a
significant investment in field tri-
als with official entities and pres-
tigious centers, such as the
C.I.V.C. in France, the University
Pontificia of Chile, EMBRAPA in
Brazil, Redebel in Belgium, etc....
We also provide top technical
support to growers and also in
terms of distribution and we
insist on the importance of train-
ing. We hope that as markets
mature and the level of technol-
ogy increases, growers will be
able to recognize and differenti-
ate high-quality products, like
ours, from other chelates with a
low stability and a questionable
chelating grade.
There is growing evidence that
an alternative to chelates may
emerge in a not too distant
future. Is Tradecorp conduct-
ing Research on such alterna-
tive?
We have carried out important
investments in the past years in
the modernization of our facili-
ties and we have reinforced our
R&D+i. On the other hand, our
laboratories, which have been
An Interview with: Eric Van Innis, Sapec Grou
Eric Van Innis
qualified by G.L.P., are among
those chosen by the C.E.N.
(European Standardization
Committee) for the validation of
new analysis methods.
Furthermore, I will highlight that,
in the field, no molecules have
been found yet that are more
stable, more efficient from an
agronomical point of view, and
more economically feasible than
those that are currently available
in the market (EDTA and EDDHA,
in particular). We know in detail
some of the projects that are
being developed and nowadays
we are participating in agree-
ments focused on development
matters with research centers
that enjoy a high prestige in this
field.
The biostimulants business is
booming. Innovations are
being launched in the market,
some of them benefiting from
patents. Is Tradecorp well
equipped to sustain competi-
tion in this segment?
There is no doubt that we have a
good position in this segment
and we offer growers a complete
catalogue of products. In 2004,
we have incorporated new prod-
ucts to our catalogue that will
We hope that as
markets mature and
the level of technology
increases, growers will
be able to recognize
and differentiate
high-quality products,
like ours, from other
chelates with a low
stability and a
questionable
chelating grade.
L E A D E R S
P R O F I L E
NEW AG INTERNATIONAL 25
reinforce our strong position in
areas such as the Middle East
and will enable us to grow in
other areas, like Europe and
Latin America. We are currently
involved in development projects
in order to reach more concen-
trated formulas, a greater effi-
ciency in different stress condi-
tions and to provide a more sim-
ple and flexible use.
Tradecorp was the first com-
pany to register one Humic
Acid product -Rhizostar and
Humistar- in several countries.
Do you see this product line as
the future black gold of the
company?
We were the first company to
obtain the official sales authori-
zation of humic acids in Belgium,
Poland and France, as well. Also,
we were the pioneers to manu-
facture this type of products in
Spain and we have 20 years of
experience in the elaboration of
same, which takes place in one
of our plants, more specifically
the one located in Albacete
(Spain). Through several trials
and studies together with differ-
ent institutes and centers from
all around the world, such as
H.P.S. in Poland, Ag Univ in
Lithuania or C.H.P.T.E. in
Belgium, we have proven that
our humic acids play a key ben-
eficial role in crop management.
What is the rough share of
Spain in the business of the
company? Do you see any
possible substantial increase
of your business in this highly
competitive market?
Spain is one of the most impor-
tant markets in the world and we
have a leading position there,
since we are one of the compa-
nies of reference in the manu-
facturing of chemical mixes of
chelated micronutrients. The
wide range offered by Tradecorp
AZ enables us to satisfy the most
diverse needs of growers from
Almera, Murcia, Valencia, etc...
In Spain, we expect to consoli-
date our strong position within
the micronutrients and special
fertilizers sector by taking
advantage of the existing syner-
gies with the rest of the activities
of the Sapec Group.
Within three years, you have
built a comprehensive interna-
tional network of subsidiaries
and sales channels. Which
p Executive Director
region is the most promising
outlet and do you have any
plans to start tapping the huge
Chinese market?
We are present in the most sig-
nificant markets of the world and
have different delegations in
Europe, the Middle East, Brazil
and Mexico, which are four
strategic areas for Tradecorp.
Our strategy is based on count-
ing, in these regions, with teams
of highly qualified professionals
and agronomists, with an excel-
lent training and orientation and
that feel close to the customer.
As far as the Chinese market is
concerned, we already have reg-
istered some products and it
wouldn't be a surprise that
Chinese growers from regions
such as Shandong or Hebei turn
to the solutions offered by
Tradecorp shortly.
Consolidation continues in the
business of specialties. At the
same time, new companies
emerge. Do you think that
there is a critical size to be
successful in this niche mar-
ket and if so, does Tradecorp
have such size and can self-
finance its development?
Yes, there is indeed a critical size
in the sector. I would point out
that Tradecorp, since it was
acquired by the Sapec Group,
has remarkably reinforced its
position and counts on the valu-
able support in terms of finan-
cial, human, R&D and production
resources of a group (Sapec) that
is strongly consolidated in Spain
and Portugal and that has a large
experience in other businesses.
That is why we enjoy a privileged
position to satisfy the needs of
our customers and to offer grow-
ers important added-value solu-
tions within a sector where those
needs constantly evolve. We are
facing the challenge with enthu-
siasm.
It wouldn't be a
surprise that Chinese
growers from regions
such as Shandong or
Hebei turn to the
solutions offered by
Tradecorp shortly.