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Sales of agrochemicals reach 50% of 2016/2017 projection in Brazil
Sep. 5, 2016
The instability of the Brazilian economy and currency fluctuations discourage Brazilian producers from acquiring agrochemicals with the same pace as seen last year, when 80% of the projected sales had already occurred.
The sales of agrochemicals in 2016/2017 have been delayed, in comparison with what was registered at the same time last year, according to Henrique Mazotini, executive-president of the National Association of Agricultural Inputs and Veterinary Distributors (Andav), speaking on Monday (08.15).
“About 50% of the estimated total volume was sold during this crop, while last year there was 80% of sales or more of the total inputs needed,” said Mazotini at the 6th Andav Congress in São Paulo. “Another important factor [other than currency fluctuation and instability] is that agrochemicals are the last input to be purchased by farmers, so it’s the most affected,” said Mazotini.
Because of the delay, Mazotini warned about a possible logistical bottleneck at the time of delivery of agrochemicals not yet sold. “It would not be a bottleneck of supply, because the industry and the dealerships have the product, but a logistical bottleneck through the accumulation of purchases in a shorter period,” noted Mazotini.
During the 2016/2017 season, prices of agrochemicals are 6% more expensive, on average, than during the previous crop, essentially due to the currency exchange rate – once half of the agrochemicals in Brazil are imported.
Producers, added the president, continue to report difficulties to access credit, but the industry of inputs, in general, should guarantee the supply of the current cycle. “The dealerships are very prepared to re-pass credit from the industry and also finance acquisitions with their own resources,” added Mazotini.
The perspective of distribution in the sector, said Mazotini, indicates that agriculture, overall, grew approximately 10% during the 2016/2017 crop and that the sales of fertilizers, agrochemicals and seeds increased. The three sectors should review their revenues, as the volumes delivered were increased at the same proportion, in the view of the executive-president of Andav.
Mazotini also said that seed sales have continued normally and at a similar pace as in the 2015/2016 season, having already reached 80% of the projected seeds to be sold during the 2016/2017 cycle.
Source: AgroNews
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