Vittia invests BRL24 million in R&D to compete with big players

One of Brazil's leading producers of biological inputs and specialty fertilizers, Vittia plans to invest approximately BRL24 million in research and development (R&D), maintaining its investment level from 2023. 

The announcement came from CEO Wilson Romanini, who stated the company's intention to directly compete with other major players in the sector.

In the first six months of 2024, BRL14.3 million was allocated to R&D. Research is being conducted by a team of over 40 professionals at Vittia's innovation center—a 1,500-square-meter facility in São Joaquim da Barra, located in Brazil's São Paulo state. The company also claimed to operate Latin America's largest biopesticide factory, with an installed capacity of 10 million kiloliters per year.

According to Romanini, the company's strategy focuses on developing innovations to drive more attractive profitability. Vittia currently holds 27 temporary special registrations to test new products, including both formulation improvements and completely innovative solutions.

Edgar Zanotto, Vittia's Marketing Director, goes even further, predicting that pest and disease control will be possible exclusively using biological inputs within three to five years. However, certain products, such as bioherbicides for weed control, still need to emerge in the market to achieve this goal.

Caution Against Market Euphoria

Vittia's CEO, however, warned against the widespread euphoria in the biological inputs market. According to Wilson Romanini, while some biopesticides have reached their price floor, others still have room for price reduction.

To navigate this phase, the executive emphasized the importance of innovation in maintaining higher margins. According to Romanini, biological product sales in Brazil are expected to grow between 12% and 15% this year, below the over 20% rates recorded before last year's input market crisis.

Vittia is also investing in special direct relationships with farmers, cooperatives, and retailers. According to the CEO, current sales are split between these two models: direct supply to producers and distribution through intermediaries.

However, the company maintained that its significant competitive advantage remains product quality. As a result, the executive adopted a different commercial strategy, avoiding extensive rebate programs, prizes, and sales commission schemes.

(Editing by Leonardo Gottems, reporter for AgroPages)