AgroPages-Bayer CropScience registers four times more barter this year in Brazil-Agricultural news

Bayer CropScience registers four times more barter this year in Brazil

Bayer CropScience projects four times more barter operations this year in comparison with 2014. According to the director of Business and Administration Planning of the German multinational, Matias Correch, this sort of payment of inputs through the delivery of grain post-harvest (without final inter-mediation) became popular in several Brazilian regions with a preponderance for Southern Brazil.

“The market has really grown a lot comparing to last year. If we look at the volume of deals, some time ago it was three times larger. Now, we are talking about four times more. We surely overcame our record,” affirms Correch. The executive estimates that the barter business represent up to 20% of the company's operations in this season.

Paulo Soares, barter manager at Bayer CropScience, explains that there are advantages “because it is about a service delivering. “We do not charge based on other payment modes. On the contrary, for this operation there are real advantages, like not paying for brokerage and the financing of operational costs. The customer only will have costs in the case of canceling the operation before the liquidation,” explains him.

Matis Correch projects that the barter operations will grow yet more in the next two years due to the Brazilian economic crisis, which restricts credit access for crop loans. Bayer CropScience plans, as a minimum target, to double the volume of inputs exchanges in 2016.

“Our activity in the sector will be a lot more active at the part of the credit than the previous years. The CPR (Rural Cell Product, used as based on exchange relations) will become even more important at this stage. We have taken out the market risk and currency and take it for us, bringing it to other agents, such as banks and buyers of soybean at Chicago. This way, we reduce additional risks. The difference is that is easier for the producer to do that,” summarizes Correch.