HighQuest is frequently engaged by clients to determine whether or not an unfamiliar market represents an attractive investment opportunity. Critical issues that clients seek to address include: 

 

• What it the value proposition for end-user that is not being met?

• Is there sufficient sustainable demand in the market for a new entrant?

• Is the market highly consolidated or fragmented and what are the segment’s key drivers?

• Who are the major players in the market, what is their profile and how do they operate?

• How should one enter the market, via acquisition of existing players or Greenfield investment?

• What, if any, successful business models are already implemented in the marketplace?

• Should the client commit resources to entering the market and, if so, what strategy should they pursue?

 

We have undertaken market entry strategies for grain trading companies, equipment manufacturers, processing companies, biotech seed companies, trade associations, private equity funds, insurance companies and financial investors allocating capital across the food/ag value chain.

Case Studies

Crop Model for Brazil Farmland JV of Large Asian Trading House

• The client had acquired land in Northern Brazil and needed 3rd party validation on which crops it should plant on the newly acquired hectares

• HighQuest conducted an analysis of production, yields, crop prices, crop profits and market access in the regions where the company had acquired land and validated the client’s assumptions on the crops it should plant

 

Profit Improvement for Large Global Farm Management Company

• The client was a farm management company that had been experiencing declining margins in South America and asked us to redevelop its business model.

• Advised client that it was sub-optimizing on inputs (thus hurting yields) and on farm management decisions which were centralized and not passed down to the farm level quickly enough.

• Based on HighQuest’s recommendations, the client redesigned its business model and made a concerted effort to push more decision making capability out to the farm level.

 

Black Sea Market Entry Strategy for U.S. Trade Association

• The client was considering a promotional push to expand U.S. grain exports into the Black Sea region and wanted a validation of this plan

• Analyzed the market potential for exports of U.S. grains into the region and found that the long-term economics of the region did not merit spending additional promotional dollars to expand exports

• The client decided against pursuing its campaign

 

Sub-Saharan Africa Entry Strategy for U.S. Trade Association

• The client was considering a promotional push to expand U.S. grain exports into Sub-Saharan Africa and wanted a validation of this plan

• Analyzed the market potential for exports of U.S. grains into the region and found that the long-term economics of the Sub-Saharan Africa region did not merit spending additional promotional dollars to expand exports

• The client decided against pursuing its campaign

 

U.S. Grain Origination Business Model for Asian Conglomerate

• The client had significant interest in investing in the U.S. grain origination market, but needed a strategy for market entry

• Advised client on successful business models that Asian companies have pursued in the past, developed a strategy for market entry and identified potential locations, partners, acquisition targets and Greenfield opportunities that the client should pursue to gain a competitive advantage

 

Major Ag Machinery Player Seeking Investment Strategy in Sub-Saharan Africa

• Our client which is a major global player in the ag machinery market was experiencing difficulties gaining a foothold in Sub-Saharan African market in order to distribute its capital goods and after-market services through established dealers.

• We advised the client on trends in the regional market, identified the key drivers for purchasing major equipment in the farming sector, estimated the market potential for new sales and after-market services, profiled the major dealers and after-market service providers and recommended a strategy for expanding its network of dealers and how to market to large-scale farming operations.

• The client continues to work on developing an organizational strategy to increase its revenue in the region.

 

Market Entry Strategy for Global Animal Health & Nutrition Company

• Commercialization and market entry strategy for new ant-microbial products

• Identified two attractive market segments for the new products and developed a market entry strategy currently being pursued by the client

 

Soy Food Strategy Development for Asian Trading Co

• Analyzed the outlook and relative future potential for the global dairy and textured soy product markets

• Based on HighQuest’s recommendation, the client invested in a JV for dairy replacement products

 

Post-Privatization Business Strategy for North American Grain Export Consolidator

• Developed a global repositioning strategy for major North American grain handler, identifying domestic and international strategy and investment options

• The client pursued our recommended strategy and HighQuest continues to support the client in its strategy execution

 

Brazil Agribusiness Value Chain Strategic Mapping for Asian Trading Company

• For client interested in expanding its presence in Brazil, analyzed the attractiveness of 14 business segments in the Brazilian Agribusiness value chain

• Currently working with client to establish the next phase of their growth strategy and investment plans in Brazil

 

Agribusiness and Food Investment Strategy for U.S. Institutional Investor

• Advised the client on attractive M&A segments within the Agribusiness and Food sector

• Based on the client’s investment criteria, HighQuest identified six industry segments with attractive return on capital and growth profiles