L. William TEWELES - Verdant Partners - USA

June 2002

Another significant change was the advent of publicly developed certified seed, being produced on contract in the western states. Alfalfa was the big tonnage at the time and the killer crop. The first publicly developed was Certified Ranger alfalfa, grown of all places in the hot San Joaquin Valley of California. Because of isolation, the seed crop maintained its northern hardiness. One of the huge commercial problems with the Certified alfalfa was that it wiped out the quality and brand difference between the major companies and the locals. This had the unpleasant result of creating a price war, which was very damaging to the majors.

After a few years of blood letting, our competitor in Minneapolis, Northup King & Co., came forward with a brilliant idea. They blended various state origins of similar hardiness alfalfa together and gave the product a brand name 919. Wisely, NK established dealer and retailer prices on 919 to allow the local retail merchant a 50% greater profit margin on 919 than on Certified Ranger alfalfa. NK heavily promoted 919 in the agricultural media. 919 was a huge success. If you’re not the leader, you better follow quickly and the next year at Teweles we marketed Multi-Strain brand alfalfa, which was a combination of Ranger, Grimm, Cossack, and Ladak varieties, all produced in Montana. These new branded products gave the majors a real shot in the arm in terms of increased revenue and profitability. But this was just the beginning.

 

 

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