News that Zantra, the sixth-largest agrichemical distributor in the UK, is stepping out of the shadows and expanding into agronomy services shows the company is intent on continuing its rapid growth.

The quest to supply both the products and the advice today’s farming business needs is behind the planned expansion, says Zantra’s managing director and co-owner Murray 
Mackay, who points out that agrichemical supply has always been the company’s core focus.

“For the past 10 years we’ve concentrated on giving the best service to our customers and suppliers,” he says. “And, as a result, the business has grown, almost entirely by word of mouth and through reputation.”

This has largely been done by building relationships with local buying groups, farmer-owned co-operatives and independent agronomists, and then really looking after them, he maintains.

“Initially, we filled in the gaps in the market,” he explains. “And as we developed our systems and product portfolio, the independent agronomists increased their share of the market significantly. That allowed us to grow, too.”

The subsequent relocation of Zantra and purchase of a Cambridgeshire headquarters, together with a Basis standard store, gave the company the central location it needed to establish a next-day national delivery service. Two new depots followed, in the north and south of England, so that overnight deliveries could take place.

“We’ve continued to build it up so that we now cover 95% of England with a 24-hour delivery service,” says Mr Mackay. “We haven’t had to work with inherited stores and infrastructure – we’ve developed our own.”

And this leaner business structure, complete with its modern logistics, has been an advantage, he believes. “Zantra has been able to respond to the seasonal challenges and product supply issues that have been prominent in the past couple of seasons, without disruption to our customers. It’s a different business model to that of our competitors, but it often works better, especially in a difficult season.”

“We’ve put some choice back into a consolidated market and growers are responding accordingly.”
Murray Mackay Zantra’s managing director

A closer look at a market that is worth £600m and has undergone a huge amount of consolidation in recent years shows that Zantra has been growing at a very rapid rate, recording a 20% increase in turnover each year. Last year, the company’s turnover was approaching £20m, up from £2m just 10 years ago.

“We were very disruptive at first, being aggressive on pricing and keen to win business,” admits Mr 
Mackay. “But the real turning point came when all the consolidation occurred. It ended up that just one company was delivering 50% of all the agrochemicals used on farm.”

Not surprisingly, Zantra was able to gain some ground at this time. With such a significant share of the buying group sector, it became clear that there was an increasing need for technical expertise to help with purchasing decisions and for agronomy support with certain customers.

“Our customers expressed a desire for a service with greater depth. It gave us the push we needed to pursue a new business direction.”

The phased investment in an agronomy division has seen the recruitment of a team of qualified agronomists, the opening of more new depots in strategic locations and the establishment of a regional trials programme. Added to that, work with agrochemical manufacturers has expanded the product portfolio and put Zantra on the same platform as other agrochemical distributors.

“We’ve put some choice back into a consolidated market and growers are responding accordingly,” says Mr Mackay. “We’re offering crop protection solutions for combinable, vegetable and root crops on a national basis, with the flexibility to meet local needs. It’s a natural extension to our existing activities.”

So what’s next for Zantra? The company is continuing to recruit agronomists and will be opening its fifth depot in the next few weeks, he says.

“We’re aiming high. We want to be the benchmark for technical agronomy advice and services. With more investment in people and infrastructure, there’s no reason why we can’t achieve that.”

More immediately, Zantra will be opening up some of its trials sites this summer so customers can see and discuss different agronomic approaches across a range of crops, as well as consider how the loss of active ingredients can be managed.