Global population continues to rise at a steady rate, and with that comes an increased demand for food. However, the population is also more globally connected than ever before. That comes with its own challenges and with differing regulations all over the world. To be successful on a global scale, it’s important to think locally. Mario Cutait, a Director of the Brazilian MCassab business group, tells his view on how to best operate on a local market, the working partnership, and the specific demands of working in South America.
MCassab are one of the biggest distributors in South America, and work in partnership with Perstorp to provide their customers with the best possible solutions in feed additives, aiming to increase productivity and animal welfare.
“We are a Perstorp Authorized Distributor but our relationship is not only a buy and sell relationship,” says Mario Cutait, “it’s a partnership with a fully integrated approach where we discuss strategic plans and enter markets together, as well as offering solutions and visiting customers. Perstorp trains us in their products, and together we bring knowledge to our customers. More than products, we sell solutions which help our customers become more profitable.”
As such a large distributor, they cater for customers of all sizes.
“MCassab is a company with over 2000 customers in Brazil. We go from small farmers to the largest integrators, to big feed producers and pet food manufacturers. We cover the whole animal nutrition and health business for all species,” says Mario.
“We have a technical team specializing in each species, bringing an innovation and solution based service. Furthermore, we have our own chemical analysis labs, certified to ISO 17025 standards enabling us to do tests as well, both for customers’ products and for third parties.”
The scientific approach
With a potential market of this size, there are potential challenges. So what can Perstorp and MCassab do to make the most of opportunities on this continent?
Mario explains: “Perstorp is well known here, but when we have a specialized product we also need to conduct local trials. We have to prove to our customers that the product works well, and that it has a cost benefit through local tests. Perstorp has researched its products extensively, of course. Our common task is to show customers how they perform on a local basis. Local tests are required as there is so much competition, and we do work with Perstorp on this. We believe in a scientific approach, and our customers do as well.”
Replacing antibiotics as growth promoters
As with every other region, the use of antibiotics is also a hot topic in the feed and food industry in Brazil. Here, it’s still legal to us them as growth promoters, but as more farms and producers look to export, they need to look to the regulations – from governments as well as private retailers and food companies – in the countries they sell to.
Mario says: “In the last few years there has been a reduction in the use of antibiotics here in Brazil which is mainly because of exports. This will continue to be the case, as Brazil is very competitive in being able to provide tailor made cuts for foreign consumers. Not only that, but with global retailers, when they ask for a specific feed product with no antibiotics or animal by-products, the Brazilian market is ready to do it. We believe antibiotics will serve more on treatment in the future, and not as growth promoters. This is why all of our customers are interested in Perstorp products.
Local insights - the key to global success
The key for any business to work on an international scale though, is to recognize that every market is different. This is something Mario acknowledges, saying:
“Each market is very different, which is why it’s important to get local experience. We need local people or local partners to be able to fully understand. We need a regional strategy to make the most out of each opportunity, then we can adapt products and prices according to the markets. Feed and labor costs are different all over the world, and that’s something everyone needs to understand.”
There are some things that apply to every market
Mario concludes: “We need to work towards a more sustainable world. With less waste, less pollution, using less water if we can, and we also need to focus on animal welfare. If Perstorp products can help us with this, there’s an opportunity.”