Nufarm makes R$1.5 billion available to finance agri inputs through CRAs

Nufarm structured five funding in Certificates of Agribusiness Receivables (CRA) from 2016 to 2019. According to the company, the papers attracted a significant number of investors, exceeded initial values, and today, amount to R$1.5 billion. The amount, according to the company, is financing farmers and distributors of agricultural inputs in the purchase of Nufarm agrochemicals, in addition to machinery and equipment, fertilizers and seeds.

The general director of Nufarm Brasil, Fernando Manzeppi, affirmed that the CRA structures have helped, season after season, to reduce the dependence on banks of an important group of company customers, especially small and medium producers and smaller companies in the distribution channel.

Manzeppi pointed out that of the total of R$1.5 billion from the CRA Nufarm, R$800 million is for the sale of items from the company's portfolio, while R$700 million is used to finance other inputs to support agricultural productivity, mainly fertilizers and seeds.

According to Nufarm's CFO for Latin America, Iara Souza, the cost of funding charged to Nufarm's customers at CRA was 0.70% per month in the last harvest, “well below, therefore, the spread adopted in the traditional financing of this productive chain”. She also explained that the papers mature between three and four years, depending on the program. “The client receives funds for the payment in the harvest term, and after the settlement, he/she has access to new financing, with a view to the next harvest,” summarized Souza.

For Manzeppi, funding via the capital market generates value for Nufarm's client business and strengthens strategic commercial ties. “In view of the fierce competitiveness of the agrochemicals market, CRA Nufarm is a service differential that makes the farmer and the distributor loyal to our brand portfolio,” reinforced Manzeppi. The executive revealed that nowadays, some 10% of the company's revenue results from the structuring of CRA operations for customers.

“Nufarm's priorities include expanding market access to branded products, increasing participation in key cultures and seeking shared success with strategic customers,” concluded Fernando Manzeppi.

The original Portuguese version of this article is from GRUPO CULTIVAR.