Économie de fonctionnalité - Définir et partager la valeur d'une offre d’économie de la fonctionnalité

Economy of functionality - Sharing the value of an economy of functionality

Workshop moderated by BASF

This workshop highlighted the opportunities offered by the economy of functionality for agriculture, in particular the transfer from ownership to use and related implications. It addressed key issues such as the definition of value, price setting, the sharing of value among players, and the challenges associated with traditional business and EF existing side by side.

The speakers explained the fundamental principle of the economy of functionality. The importance of a promise of tangible results and not simply marketing approaches was emphasized. In the agricultural sector, they addressed the importance of the quality of the pesticides used from 3 angles: eco-efficiency, sustainability and cost to marketers.

New economic model and risk management

There was discussion over the new economic model that is now developing with a shift in the use and exploitation of resources. The issue of risk management and liability was mentioned, as well as the importance of security and guaranteed results for farmers.

In addition, another topic raised was the importance of reducing the use of chemical products while maintaining the quantity and quality of crops.

Communication and distribution of services

The distribution of these agricultural services offering was discussed, highlighting the importance of partnerships with distributors such as cooperatives and traders to reach farmers. The importance of cooperation and transparency in relationships with partners was also emphasised, in particular to ensure a coherent sharing of responsibilities and value in a situation where traditional business and EF work side by side.

Speakers highlighted the agro-ecological approach, which aims to use fewer and more effective plant protection products, a major objective for manufacturers, distributors and farmers alike...

Price management and relations with partners

The question of price setting in this new economic approach was discussed, mentioning the importance of detecting different levels of value (perceived, actual, potential) and blending them into a valid market price.

Two important issues were raised: determining a price that reflects the risk of a given situation, and keeping things simple to make it all easier to sell.

Customer retention and long-term commitment

The speakers acknowledged the fact that the development of this approach requires time and investment, but they see potential for growth and customer retention. The current retention rate is around 75% and they estimate that market penetration potential could reach between 15 and 20% of arable agricultural land. The example of Michelin, which has a penetration rate of 15%, was cited.