Dutch banks advertise the international network Dutch companies can use to operate internationally, but the reverse happens equally often: foreign companies setting up shop in the North Sea country. Eddy Kreukniet talks about the advantages of having their own sales agency for the originally South African EXSA.
Independence parent company
EXSA Europe is a subsidiary of EXSA, which means the growers in South Africa are majority shareholders with the local management in the Netherlands. EXSA was established in 1996, when a group of South African growers joined forces after the market was released. In addition to the headquarters in Cape Town, EXSA has sales agencies in the Netherlands, the United Kingdom and Asia (Malaysia).
Since day 1, EXSA Europe has been seeking to be financially independent from the parent company, which they achieved in the first year. Eddy says it’s unhealthy to be too dependent on each other. “We purchase around 30 to 35 percent of the volume produced within EXSA. In terms of our revenue, that’s about a third as well.”
Close relations growers
“The advantage of a direct relationship with the grower in South Africa and Egypt is that you can organize chain management well in areas like quality, packaging, food safety and responsible entrepreneurship. Of course that’s also possible when you don’t have a direct relationship with the growers, but I think that, with that direct contact, we are better organized than an average importer.”
More sales agencies?
The step to establish an own sales agency is a big one. Will more big companies take that step? “I don’t know, it’s very important that the basic relationship is a good one. You have to have an extremely good relationship before you can begin thinking about starting with that, because it’s all well and good to do business with each other, but sometimes things go wrong. Also, many producers are fairly limited in availability during the year.” Opening a sales agency for a few months a year is impossible. A Chilean top fruit grower has a limited season. That means the sales agency is out of work for about six months a year. “The only possibility would then be to work with partners in Europe, like we do. But they have to have their client network in order, both toward the customer and to other suppliers.”
