system, and most important of all, how is the business environment like
(Cabrera).
One big problem a salesperson faces in Latin American countries is the
credit issue. Considering that Farmland has been working abroad for over a
decade, it has not fully developed trust on the foreign economies. In Latin
American countries, credit is very difficult to obtain and even if you get
the credit approved by a bank or other entities, Farmland acts rather
conservatively and makes this process difficult for some companies. This is
one of the problems salespeople encounter as they seek potential customers.
The salaries that Farmland offers abroad are very competitive, and they
basically match the salaries offered by other leading companies. Income is
also based on education and experience. There are two different ways you
will be paid when working for Farmland in a foreign country. If you are
working in the US. and then you are transfer to a foreign country, your
salary will not change once you are in the other office. In addition to
regular salary, you will be given a percentage extra on the currency of the
country where you are going to live called expatriation allowance. This
money is supposed to help pay bills, such as house, food, and other basic
necessities (Cabrera).
The other way you can get paid is in 100% the currency of the country you
are living in. This case is only applicable to the people who have been
hired by the subsidiary in a specific country (Cabrera).
As part of the training, we let people know performance will be measured in
a yearly bases. When you are hired, you are requested to set some
performance goals, where you will distribute your time given to the
company, given to the customers and to yourself. At the end of the year you
will meet with the supervisor for your division, and you both will analyze
your performance and determine how productive you have been for the company
(Cabrera).
When the Mexico City office has people coming from the Kansas City office,
they try to explain some cultural differences such as business, lunch hours,
and working hours. In the business aspect, people must understand that the
Latin Americans rely a lot in the relationship that is developed between the
salesperson and the buyer. A written contract is not as valuable as the
trust that emerges from knowing one another as individuals. In Mexico,
people work from 9am. to 6pm., and their lunch break is around 4:00pm. In
some cases, people working in Mexico are suggested to start the day a little
bit earlier, because in this way they will be able to contact everyone in
Mexico and Kansas City. From Monday trough Thursday, all people are
required to dress suit and tie, and Fridays everyone can dress more informal
(Cabrera).
These are some of the problems and experiences that Farmland must face to
do business abroad. This is just one example of the cultural diversity, and
every country will have different situations.
Conclusion
In the agriculture industry today, just as anything else, things change
rapidly. The American farmer and rancher need somebody to inform them of
the changes that need to be made, then help them implement the changes. They
also need not only to market his/her product on a local or national level,
but on a global scale to remain competitive. The American consumer as well
as the international consumer needs to be confident that they are getting
excellent product at a competitive price. Farmland Industries is the
crucial link between these two segments of the market. It is a system that
has proven strong for many decades and promises to be strong for many more.
Alm, Rick. "Gamblin? on the River." The Kansas City Star Almanac. 1996.
Cabrera, Mario. Telephone interview. 20 Nov. 1996.
Fite, Gilbert C. Beyond the Fence Rows. University of Missouri Press,
Columbia, Missouri, 1978.
Fite, Gilbert C. Farm to Factory. University of Missouri Press, Columbia,
Missouri, 1965.
Hartke, Debby. "Farmland?s Harry Cleberg: Agri-marketer of the year."
Agri Marketing June 1996: A-D.
Tolley, Warren D. E-mail to the author. 8 October, 1996.
"Top 125 Area Private Companies-Part I." Kansas City Business Journal 14
June 1996: 20-24.
Appendix
1992 Annual Report. The Farmland Cooperative System, 1993.
1994 Annual Report. The Farmland Cooperative System, 1995.
1995 Annual Report. The Farmland Cooperative System, 1996.
"We Bring Quality to the Table" The Farmland Cooperative System. 1996: 61
U.S. Bureau of the Census 1995.