Colorado-based Hollar Seeds' Chinese partnership fails, but company

Larry Hollar, president of Hollar Seeds, recently ended a seven- year joint venture with a Chinese partner.

Hollar said a lack of effective, timely communication led him to sell his share of the Chinese farm to his partner for what he originally invested.

"They initiated the sale," Hollar said. "We had started wholesaling seed through a different method in that same area. We called it walking on two legs -- but our partner didn't appreciate it at all."

Having the right partner is the key to making any overseas venture work, he said.

"Be prepared to spend a lot of time choosing the right partner," Hollar said. "Find more than one potential partner before you go -- then narrow it down with a few trips to the country."

Mark Durand, a professor of international business at Regis University, agrees.

"Someone who is there and understands the way things work handles that. It's one thing they bring to the table -- and it's very valuable," he said.

One other thing Hollar said he'll do if and when he invests in another overseas partnership, is make sure he has a full-time staff member at the location.

"When we started this we weren't a big enough company to accomplish that," he said. "But now, I'd make sure we would do that."

Language and cultural barriers weren't a problem, Hollar said. He has two Chinese-American employees who provided language and cultural help -- and one of them provided the connection to the Chinese partner.

But it wasn't just that personal connection which encouraged Hollar to make the investment in an overseas venture. He also spent time learning about the country.

"In 1999, I read three books about doing business in China," Hollar said. "Now, I'd say that anything older than two years isn't worth reading. Things have changed so much over there. The first time I went, in 1979, there were more donkey carts on the one-lane road from the airport in Beijing. Now, there are more Mercedes."

While his venture didn't work out , Hollar Seeds hasn't given up on exporting. The Rocky Ford farm has exported seeds since 1950 and sells its products in more than 63 countries.

Copyright 2007 Dolan Media Newswires
Provided by ProQuest Information and Learning Company. All rights Reserved.