Brazil: Produce Agro assembles army of 9,000 consultants for direct farm input sales

The Brazilian input distribution company, Produce Agro, has launched a new business model for the sector, which is direct sales on farms utilizing a network of consultants to reach consumers directly. To achieve this, a veritable "army of sales consultants" has been recruited to cover the entire Brazilian territory.

According to the founder and vice-president of the company, Guilherme Trotta, it already has some 9,000 registered consultants who generated total revenues of BRL200 million in the last 12 months. "In the past year, we have seen a 380% increase in revenue. We are being approached by major agribusinesses to include their products in our portfolio, and discussions are underway," he said.

Produce Agro has both national and international investors as shareholders, and recently received an investment of BRL100 million. The company offers more than 500 products, including corn and soy seeds, inputs, and animal nutrition items, with a customer base of around 6,000 active clients. "We train our consultants at no cost, and they are responsible for building a network of relationships and selling products, for which they are rewarded with a commission," Trotta explained.

According to Trotta, consultants only handle the sale of products, while the company manages logistics. However, he stressed that, due to the characteristics of the Brazilian market, in some cases, the platform only intermediates with manufacturers, who are responsible for delivery. Produce Agro also provides financing, with around 70% of sales made on credit, with payments being aligned with the producer's crop cycle.

Trotta said that consultants’ earnings range from 1% to 20%, especially in the case of fertilizers, which are much higher commissions than those awarded by traditional resellers, which typically average around 4%. Produce Agro also has a partnership with Agrotech Insurance Broker, and in these cases, consultants also handle the sales process. While most of Produce's operations are in the southern region of Brazil, the company is expanding to other regions, especially in the Midwest.

(Editing by Leonardo Gottems, reporter for AgroPages)