Brazil and Argentina may account for 45% of Nufarm’s agrochemicals business in the next five years, up from 35% now, the company’s top global executives said last Friday.
The Australian group’s Administration Council had met at São Paulo, The meeting was attended by CEO Greg Hunt, chairman Donald McGauchie and the company’s presidents for Latin America and Brazil, Marcos Gaio and Luciano Daher, respectively.
On this occasion, the leadership of Nufarm highlighted the importance of the group’s business growing in the Brazilian market. “When you look at Brazil, you see a double digit growth in agriculture happening for a while,” highlighted Greg Hunt. According to Hunt, almost five years ago, Brazil and Argentina accounted for just about 15% of Nufarm’s global revenue.
“In Brazil, we see opportunities especially for corn and soybeans, but we have also grown a lot in the area of pasture,” added Hunt. The president for Latin America, Marcos Gaio, highlighted that the sales of herbicides in the Brazilian market accounted for 10% of the local revenue. “Currently, Nufarm Brasil has the second leading position in the herbicide segment for pastures,” affirmed Gaio.
The chairman of the company, Donald McGauchie, highlighted that Nufarm has just created in Brazil a department of structured financial operations. He revealed that the company will soon bring to its customers a set of mechanisms to finance the agricultural inputs, including barter. “We want to be the most complete company in the market in terms of financing,” stressed McGauchie.
This year, added Marco Gaio, Nufarm will again issue Agribusiness Receivables Certificate (CRA)*. The last release of these certificates in the month of August, 2016, had accrued R$143 million while the demand was worth R$180 million.
Before the Administration Council met, the group of executives recognized the importance of the operations staff at the industrial unit of Nufarm situated in the city of Maracanaú, Ceará, in the greater Fortaleza area. In Fiscal Year 2016 that ended in the month of July, Nufarm’s global revenues totaled Aus$ 2.79 billion.
* What is CRA?
A Certificate of Agribusiness Receivables (“CRA” in Portuguese) is a debt security issued by a securitization company backed by agribusiness credit rights. These credit rights arise from financing operations or loans related to agricultural production, trading, processing or industrialization of products, machinery or equipment, all of which are employed in agricultural and animal husbandry production. The securitization companies structure those receivables in order to issue debt securities and distribute them to investors.