It is a time of opportunity for agrochemicals in Brazil, says ANDAV
May. 12, 2020
The president of ANDAV (National Association of Distributors of Agricultural and Veterinary Inputs), Paulo Tibúrcio, believes that the inputs sector should not be affected by logistics and price problems during the coronavirus pandemic. “It is a time for opportunity, and it is time to better understand our business,” he said during an online event promoted by the Federation of Agriculture and Livestock of Goiás.
“This is the time to reorganize in the ‘digital environment’ and make investments in new areas and technologies. We are not going to think about the crisis; there will be a lot of space to work in agriculture for those who reorganize. We want to encourage our distributors. The scenario is favorable, with Brazil closing good deals,” he added.
According to data presented by him, in 2019, the United States saw a lower consumption of pesticides, and pushed Brazil to move toward the highest volume of agrochemicals in history. According to the president of ANDAV, Brazil turned the year with a high stock of pesticides, and this ended up being a positive force, especially during this period of quarantine as a result of the COVID-19 pandemic.
“Still, in April, much of the stock that was being disposed of was acquired in 2019. It is only from May that we will feel the weight of the dollar because more than 90% of our pesticides are imported, especially from China. As it takes 90 days from the time of purchase to the arrival, we should feel some effect after that date,” he added.
With regard to the logistics of agrochemicals and fertilizers, there are no major impacts being forecasted. Manufacturing plants in China and India are operating normally. “What can happen is that the transport can take a while which requires planning here. Problems can arise while importing raw materials, but companies must plan for delays at ports and in shipments until the Brazilian industry arrives,” explained Tibúrcio.
Also present during the broadcast was the vice president of the ANDAV Council, Osvaldo Recha Filho, who is also an inputs distributor, and stressed the importance of the role of distributors during this time with information, training and tools that facilitate the remote work of distributors.
“This is a moment for reflection, but we understand that we are in a sector that has a rapid response capacity, which is the agribusiness. We have flowers and HF at time that is not so good, but we have soybeans during a very favorable scenario. Even with the real devalued against the dollar in the input market, the exchange ratio is still valid and making profits for the producer,” he said.
Ademir da Silva, executive of ANDAV in Goiás, a state that has 60% of the distribution associates, also believes that this is the moment for a virtual reorganization of the works. “Pre-booking is perfectly possible. It hasn't affected us. The distributor has an essential role in the success of the harvest because it ensures that the inputs will arrive on time for the producer. We believe that at the right time, the producer will be able to receive the consultants and this will not take long,” he concluded.
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