Perterra, from Crop Care Holding, earned BRL130 million with post-patent agrochemicals

Perterra has achieved revenues of BRL130 million in the 2022-2023 season from the sale of post-patent agrochemicals, also known as generics. 

For the current 2023-2024 season, the company expects to reach BRL180 million.

To achieve its revenue goals, the Crop Care holding member has developed a strategy to gain market share in Brazil, the world's largest agrochemical consumer market. One of Perterra's advantages with post-patent pesticides is their lower cost compared to specialty products, which is particularly important as producers face difficulties purchasing inputs in Brazil.

According to Sindiveg (National Union of Plant Protection Products Industry), generic agrochemicals cost approximately 25% less than exclusive formulations from developer companies. Currently, the company's portfolio includes 21 proprietary products, with several launches planned for the coming months.

To ensure supply, executives have been working directly with Chinese partners, which now total 25, including companies such as Aba Chemical, CAC, Yonon, Hailir, Lier Sino-Agri, Limin, and Wynca. Besides post-patent products, Perterra also works with differentiated formulations combining two different molecules.

According to Juliana Shiraishi, Perterra's Head of Strategic Sourcing, the company focuses on companies with high production expertise. The agreement with Chinese suppliers stipulates that products arrive already labeled with the Perterra brand and ready for distribution in Brazilian territory.

Paulo Alvares, Director of Regulatory Affairs and R&D at Crop Care, explained that Perterra maintains strong collaboration with input distributor Lavoro, their main distribution channel. Between 3% and 5% of all Lavoro's sales – which is controlled by Patria Investimentos, as is Crop Care holding – come from Perterra products.

Left: Juliana Shiraishi, Perterra's Head of Strategic Sourcing

Right: Paulo Alvares , Director of Regulatory Affairs and R&D at Crop Care

Alvares recalled that the goal is to obtain proprietary registrations quickly in Brazil, which is reflected in current approval timeframes. According to him, the company's chemical approval average is three years, compared to an industry standard of seven years.

Currently, the portfolio focuses primarily on soybeans, corn, and cotton, although there are products for pasture, eucalyptus, and sugarcane. For the coming months, the objective is to enter the citrus market as well. To expedite product imports, Perterra has established a trading company in neighboring Uruguay.

Juliana Shiraishi, based in the Uruguayan capital Montevideo, emphasized that the trading company provides a hub for strategic international partnerships. Additionally, she explained that the location is strategic, as Uruguay is a free trade zone with tax benefits. 

"This way, we separate distribution operations from sourcing strategy," the director said in conclusion.

Crop Care currently also includes the companies Agrobiológica, Cromo Química, and Union Agro.

(Editing by Leonardo Gottems, reporter for AgroPages)