Most inputs are distributed by cooperatives in Brazil
Apr. 1, 2016
Cooperative unions now represent the main distribution channel of crop protection products, fertilizers and seeds for Brazilian farmers. This data is highlighted in the Second Market Survey of Fiesp (Federation of the Industries of São Paulo) and the Organization of Brazilian Cooperatives released recently.
Considering the inputs by category, 47% of the crop protection products are purchased from cooperatives, 45% from dealerships, 22% from industries and 3% from trading companies. For fertilizers, 48% come from cooperatives, 35% from dealerships, 30% from industries and 5% from trading companies. On seeds, 41% are supplied by cooperatives, 39% by dealerships, 26% by industries and 7% by trading companies.
According to the survey, most of the purchasers are done by farmers with cash payment on demand or within 180 days. The exception is for acquisitions of agrochemicals with trading companies, in which the payment is generally done “until the end of harvest (or over 180 days) and barter operations (exchange of inputs by agricultural product),” says Fiesp.