Bio-input industry provided BRL 2.3 billion in credit to Brazilian rural producers in 2022

The agricultural bioinput industry provided BRL2.3 billion in credit to Brazilian rural producers in 2022, according to a survey by Marketstrat commissioned by CropLife Brasil (CLB). 

Out of this amount, approximately 85%, equivalent to BRL1.7 billion, was through direct financing. Another form of credit provided by the bioinput industry was "structured/financial operations," which represented BRL41.9 million (2%), along with other financing forms totaling BRL263 million (13%).

Arthur Gomes, executive director of CropLife Brasil, highlighted the significant value of credit recorded by the study. ″It is impossible to talk about agricultural production in Brazil without mentioning the topic of credit or the mechanisms responsible for financing the producer. Therefore, the value justifies the increase in the use of this technology in the country,″ the executive analyzed.

Gomes also referenced the strong adherence of the Brazilian bioinput industry to ESG practices. ″Among the industry’s initiatives in the three pillars, we naturally identified a higher percentage (47%) in the environmental pillar, but also notable efforts in the social and governance pillars,″ the executive emphasized.

Essential for agricultural production in Brazil, financing has been conditioned by sustainable factors. An example of this is the Plano Safra, which offered reduced interest rates for producers with sustainable practices, and the biological control product industry in the country is keeping pace with this trend.

Taxes

In taxes, the estimated total collected by the agricultural bioinput industry in 2022 was BRL472.6 million, about 18% of total revenue. Of this amount, BRL442 million is related to domestic transactions, and BRL30.6 million is from the import process of sector companies.

Research & Development

Investments in Research and Development (R&D) by Brazil’s agricultural biological products industry in 2022 totaled BRL81 million. The amount represents about 3% of the sector's total revenue, according to the research commissioned by CLB. The total number of direct workers in the agricultural bioinput industry was estimated at 5,500 in 2022.

ESG Initiatives

In the environmental pillar, among the main actions of the surveyed companies is the adoption of clean energy, which includes the supply of energy from the Free Market in industrial complexes.

There was the purchase of renewable energy in the free market for most of the consumption (more than 90%), installation of solar panels in industrial facilities and research centers, and projects for constructing photovoltaic plants in other centers. This ensured the generation of 100% renewable energy. As a result, diesel-powered transport was replaced gradually with electric vehicles, vehicles powered by compressed natural gas (CNG) and/or biomethane, and rail transport to reduce CO2 emissions.

(Editing by Leonardo Gottems, reporter for AgroPages)

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