May. 14, 2019
Brazil's CHD's company is an agrochemical company established only two years ago but with rapid growth, and in 2018 it became the second biggest importer of Emamectin benzoate in the world. Recently, we invited Leila Zorzetto, Brazil Director of CHD's, to introduce CHD's achievement. Leila Zorzetto also shared with us some recent changes in the Brazilian agrochemical market and the challenges CHD's face in its business development.
CHD´s Brazil Director
A(AGROPAGES): Please introduce the CHD’s company.
Z(Leila Zorzetto): CHD’s is a two years’ company established by the Disam group. The group has 9 companies and has been in the market for 40 years, which gives us a large experience and knowledge in agriculture business in Brazil, Paraguay and Bolívia.
As a distributor we are the number one in the market where our companies have focused businesses, with a large history of serious and committed work.
Our group are able to support every link of agriculture chain, as a supplier of all products that the farmers and distributors demand, from fertilizers, to chemicals and farming machines.
We also acts as worldwide exporter of grain, providing commodities alliance with agriculture partners and our own production in Paraguay and Brazil.
Although CHD’s has been considered as a new company, we have been developing a very good market in Brazil, reaching out to big groups, since we are acting in almost every state in Brazil. In 2018, CHD’s was the second biggest importer of Emamenctin Benzoate in the world.
Our company vision is to be a supplier for farmers giving them a full support.
A: What do you think is your core competitiveness?
Z: With substaintial experience in agriculture business in the whole chain, we have the right knowledge to face the demands from markets, giving them support and solution to accomplish best results. The company’s target is to reach better productivities for our customers, giving them the best solutions and benefits.
A: You are the second biggest importer of Emamectin benzoate in 2018 globally, can you share some market experience on this product. What is your company’s product strategy?
Z: We have vision that Brazil’s market has big potential for Emamectin benzoate due to the efficacy of this product and the cost being lower than other insecticides that we have on market today, which turns the product more accessible.
At this moment we are focus in new mixtures products, which we look forward to better efficiency and better results. We consider new mixtures a big tendency for the market.
A: Can you tell us about the changes and trends of the crop protection market in Brazil in recent years? How do you face the changes?
Z: With entrance of new companies in Brazil’s market we have seen a decrease in sales prices. With this, the big income concentration starts decreasing, making the prices more accessible.
Due to this, we realize that acting in a distribution chain can be a good strategy to keep the margins healthy.
The regulations in brazil would be improved without loosing it’s security and authenticity, what would facilitate the entrance of new players on the market. We can observe that the tendency for registrations will be mixtures, creating new formulation with more efficiency.
At the moment we are analyzing the market. Many companies in Brazil had already launched Biopesticides business, even big farmers, they are building their own factories. We are not sure about the economic viability, and the exact demand once there will be many company in this market.
A: What is your international business layout?
Z: Our intention as CHD’s company and also as the Disam group, is to grow each day more and more in the international market as importers and even as distributors. For this end we have applied many registrations in other countries. We are hoping that in the future we have an important growth worldwide.
A: What and the major challenges you are facing now? How will you adjust your strategy to cope with it?
Z: Today China is our biggest supplier, and the supply can be an important challenge, because a lot of Chinese’s factories were closed in China due to environmental inspection, even though we can count with important suppliers from India.
The impact from production restrictions affected us strongly, to be clear, the costs became higher, due to the lack of products.
Nowadays, we took measures to avoid it, selling some products after the shipment and looking forward to guarantee according to delivery time with our customers.
A: Could you share the guidelines when you choose your supplier or your cooperator?
Z: We can considerer some points to choose a supplier:
Accomplishment on shipment time;
I consider these terms essential to negotiate.
A: How do you view the future of crop protection market in South America?
Z: The future in Brazil can become as Paraguay. With more registration being approved, and more companies starting business, the tendency is that the margins could decrease. On the other side, due to the size of Brazil’s territory, Brazil could support more companies in Agribussiness