Breakfast Keynote Speaker: Brett Bruggeman

BY JESSIE SHOOK

As President and Chief Executive Officer Rivers Myres introduced Brett Bruggeman at the 85th Annual Membership Meeting, he described Bruggeman as “authentic” and “a man of his word.” “When he tells you something, you can count on it. He’s going to do everything possible to make it happen,” Myres said.

Brett Bruggeman is the President of Win- Field United and Executive Vice President of Land O’Lakes, Inc. His role focuses on delivering data-backed, insight-driven agronomics, operational excellence and sustainable solutions to help agricultural retailers meet farmers’ needs. Bruggeman began his career with Land O’Lakes, Inc. in 2015 with the merger of Land O’Lakes and United Suppliers seed and crop protection products businesses, which is known today as WinField United.

Bruggeman explained the importance of AFC’s Annual Membership Meeting and how having the leadership and membership together was a special event and an opportunity to show the commitment everyone has for this industry. “The reality is, there are some opportunities or hurdles, however you want to look at it,” Bruggeman said. “And when you hear the commitment of everyone, it’s a pretty big deal.”

Bruggeman sees nothing but opportunities. Knowing the concern for the current market, he described what is happening and what we are going to do. “It’s probably the biggest opportunity, at least in my 30-plus years, that I think we have as a system to take advantage of,” he added. “You have something special, and we need to make sure we keep pushing.”

WHAT’S HAPPENING IN THE MARKET

While some may say that the market has always been ever-changing, Bruggeman wants everyone to stop and think about the volume of change and the rate of change. In less than 24 months, 20% of urea and 20% of MAP/DAP have been cut off; there are four new CEOs with our competition, five new leads with manufacturers and $30 billion invested in new ag technology. “This is a fast train, and it’s not to underestimate what we can do or not,” Bruggeman said. “It’s to get your mindset that there is always change but it’s probably at the highest volume and highest speed that we’ve ever felt.”

Bruggeman stated that many are blaming supply chain problems on COVID-19, but supply issues started back in 2016 with China’s president. He began implementing strict environmental standards which led to manufacturing plants shutting down or relocating causing supply disruptions.

Next is inventory – in 2017 inventory levels were at 130%. “All the different manufacturers were coming together,” Bruggeman said. “Everyone was producing, and the market was shrinking, the inventory was growing. Since then, our working inventory is not 130%, it is closer to 25%.”

In 2018, tariffs were added to existing duties on imports into the U.S. This 15-25% increase in tariffs caused fewer products to come fromChina. This was followed by COVID-19 in 2020 and port infrastructure issues.

Weather caused supply issues in Texas in 2021 along with hurricanes. “Also in 2021, North America is no longer the most profitable place for manufacturers to sell their product, it’s better in Brazil,” Bruggeman added.

This also leads to crop protection issues. The product supply issues experienced in 2021 will be the same in 2022. Packaging issues, transportation delays and Gulf weather events caused significant delays in 2021. WinField United reported 187 vended brands as stocked out, while also experiencing 14 force majeure delays on raw ingredients.

WHAT IS WINFIELD UNITED DOING?

While 2021 may have been full of challenges, Bruggeman explained it was still a great business year for many. Support in these challenging times comes from focusing on optimizing manufacturing locations, innovation of technology, product substitution, reshaping our supply chain and focusing on sustainability.

By optimizing manufacturing locations, Win- Field United brings a new value proposition by being able to make products themselves. Logistics is a big deal and having the footprint brings more capabilities.

WinField United is also using technology, including monthly market intel updates. This empowers WinField United and its owners to make better business decisions. “The monthly market intel is shared with our field sales teams and is available to your business to help aid in inventory positions during both stable and volatile market swings,” Bruggeman said. Advances also come in the form of product innovation. This includes synthetic AI, biologics, combination AI and bio, and advanced genetics. Management changes in technology include digital and ag technology, AI and automation, ecosystem service and outcome-based markets.

Product substitution is an additional consideration. According to Bruggeman, there is plenty of product. It may just not be the same brand or SKU; but, it still does the same job. “There most likely will not be enough for re-spray,” Bruggeman said. “Get the right stuff down the first time.”

For the betterment of the entire system, WinField United has a plan in place to improve the supply chain. That includes removing steps, forecasting demand, visibility of inventory and structured deliveries. By streamlining the process there will be more direct ship, pick up and structured delivery in the form of reliable, twice-weekly delivery in-season. They will utilize Evolve (digital order management system) which will help forecast demand while also allowing visibility of inventory.

Bruggeman also emphasized that now is the time to focus on sustainability. Carbon dioxide levels have never been this high in human history and increase in demand has spurred investment in new carbon programs.

The WinField United system is uniquely positioned to win with its four pillars. First, retail reach – 4,000 salespeople and local farmgate relationships. Second, market access – infrastructure and competence. Third, science – innovation and research. Lastly, Land O’Lakes brand – known brands open doors with consumer packaged goods.

Just like what we hear from AFC’s very own Rivers Myres, “Watch Us Win Together,” WinField United has set up a system that is positioned to win. “While many players have jumped into the space – no one can bring the context, assets and resources to the challenge like our system,” Bruggeman said. “We not only have the leading agronomic platform, but also the infrastructure to deliver on market needs.”