Q & A with Dick Farrar, head of U.S. and Canada operations for Makhteshim Agan of North America Inc. (MANA)

What's new about your products novaluron and Arrow (clethodim)?

Novaluron is an IGR with exceptional activity against lepidoptera and other insects.

Novaluron is unique for Makhteshim Agan because it is proprietary chemistry being developed globally under the trade name Rimon. In the U.S., it received fast track registration by the EPA for the nursery market. We anticipate initial crop registrations in early 2004 for apples and cotton. In these crops it will be sold as Diamond.

We've also received registration for our Arrow brand clethodim. We see clethodim as the most powerful and versatile of the postemergent grass herbicides in several crops, including soybeans, cotton and sugar beets. We're looking forward to our first season in 2004 and have been very pleased with the response of the marketplace.

Makhteshim Agan may be the largest generic chemical manufacturer in the world, but you're not as well known here in the United States. What should retailers know about the company to help them in their businesses?

We've done business in the U.S. for over 30 years. Until three years ago, however, all sales were to basic manufacturers, formulators or distributors. Beginning in 2001, we began selling MANA-labeled Galigan (oxyflurofen), dicofol, and Apollo. In 2002 and 2003 we added additional products, and for 2004 we will have more than 20 products available for the U.S. market. During this period, we have solidified our position on many of the products where previously we supplied only technical. For example, with endosulfan, although we had been supplying technical product for years, we purchased the Thiodan business from FMC and introduced our own branded product — Thionex. We also completed a supply agreement with Bayer, leaving MANA as the major supplier in the U.S. Similarly, when Syngenta chose to exit the diazinon business, we increased our commitment to the molecule and are defending it at EPA and in many states, especially in California, and are now the sole supplier of this old but valuable product for the United States.

Over the years Makhteshim Agan has gained a solid reputation for manufacturing excellence. Most basic suppliers recognize this and have manufacturing or supply agreements with us for various products.

How do you compare yourself to other generic manufacturers that sell products in the U.S. and what are your distinctive differences?

A key difference is the strength of our manufacturing base. The expertise, plus the synergism that comes from producing products at the volume we do, is a huge asset. Also, our commitment to the pesticide business is long-standing and unquestioned. In the U.S. our name may not yet be recognized, but there are few retailers and growers who have not been using our products for years, although they were sold under other brand names.

And finally, I believe we are different at MANA because of our approach to the market. Our product offering ranges from commodities to proprietary, with many products falling in between. Our approach with these products has been to give retailers an opportunity to make money by having product options available. If there is one message we've heard from our customers, it's been to help them unbundle products from basic manufacturers. We are working hard to be the “unbundler.” No bundles, no load-ups, no unreasonable goals. Just good quality products and an opportunity to help retailers manage their own businesses.

How large is your sales force today and what tools are you using to reach retailers at a local level across the United States?

Today we have 12 sales/development people covering the United States, and one in Canada. These folks are backed up by first-class customer service and additional support personnel. Much of this has been in anticipation of some of the products just over the horizon.

What gets you excited for 2004?

In addition to the products we now offer, we expect to introduce six to eight new products in 2004. That's a lot, but it's what we've been getting ready for these last few years.

Dick Farrar is responsible for commercial pesticide activities in the United States and Canada for Makhteshim Agan of North America Inc.

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