Brazil: Sindiveg warns of logistical issues in delivery of agrochemicals

The National Union of Plant Protection Products Industry (Sindiveg) warned of possible bottlenecks in the delivery of crop protection products in Brazil due to coronavirus. "I still do not see a red flag, but I see a yellow one," said Júlio Borges (President of Sindiveg).

There is currently no delay in the delivery of products, but as some factories have stopped production in China, the origin of most agrochemicals used by rural producers, there is a delay in the arrival of raw materials and intermediate products in several countries, he added.

“About 90% of industries that stopped production in China are already returning, but what concerns us is the logistical chain. There is a concern that we will have a logistical bottleneck in Brazil,” he explained.

Borges stressed that due to the coronavirus crisis, industries are trying to prepare, but products are still being produced in the Asian country. “In Brazil, this is not the major production season, which is in May, July and July. We have no cases of coronavirus in our factories, so for now we are trying to anticipate and prepare for any cases,” he further added.

Anticipation of purchases

Borges also reports that with the surge in the dollar, at levels above R$5, many farmers are anticipating the purchase of crop protection products, noting that as almost 90% of agrochemicals are traded in the US currency, the costs to industries have increased.

"There are certainly inventories based on previous costs at last year’s an exchange rate average, perhaps in some cooperatives and some inventories, but we have not yet been able to estimate them," he explained, affirming that it will be necessary to assess available opportunities.

Possibility of plant shutdowns

Sindiveg said that it is taking the necessary measures to prevent the spread of the disease, with some teams already working from home. However, the organization said that the industry continues to function.

“Most processes are automated so there is not much proximity, but there is concern regarding cafeterias. What we have been doing is trying to segregate people, creating more shifts and alternating schedules, to avoid suspending activities due to possible contamination,” he said in conclusion.

The original Portuguese version of this article is from Canal Rural.