Agricultural input distributor Lavoro expands operations to Ecuador

Date:10-29-2024

Brazilian agricultural input distributor Lavoro has announced its entry into the Ecuadorian market. 

The organic expansion occurs through the Agrointegral brand, which is part of Lavoro group's portfolio of companies in Latin America and also operates in Colombia.

Through its partner Cosmocel Ecuador C.A., Lavoro will distribute liquid fertilizers for flower cultivation, primarily targeting customers in the cities of Cotopaxi and Pichincha, traditional producers in this sector within the country.

Ruy Cunha, Lavoro's CEO

According to Lavoro's CEO, Ruy Cunha, the goal for this first year of operations is to develop the market and activate new customers, offering high-quality products and services while seeking customer loyalty.

"The operation in Ecuador is highly strategic, as many of our Colombia-based clients specifically grow roses on Ecuadorian soil. In Colombia, we have already achieved significant market share in this segment, which endorses us as one of the main partners for local flower growers and farmers," Cunha emphasized.

Lavoro is Brazil's largest agricultural input distributor and the first in Latin America to be listed on Nasdaq, the American stock exchange. Founded in 2017, Lavoro has a broad geographical presence, operating in Brazil, Colombia, and Uruguay. It serves approximately 74,000 customers through its physical presence in over 220 stores across Latin America, with a team of more than 1,000 technical sales consultants, and digitally through its marketplace.

Counter to the Crisis

Ruy Cunha warned that "while there's much talk about the Brazilian agribusiness being in crisis, it's important to evaluate the factors leading to this assessment carefully. It is a fact that perhaps the 2023-2024 cycle has been the worst crop year of the decade. Specifically, the calendar year 2023 was extremely challenging for all players in our market. Farmers, agricultural input distributors, and consequently, the industry had to look inward at their businesses and recalculate their route."

But should we be hopeful for what's coming now that we understand the path taken and the hard lessons learned during this period? Lavoro's CEO stated that "for agribusiness to return to a growth path, it's important to align strategies and understand that the 2024-2025 cycle will still be one of adjustments and reduced margins. However, I believe that the effects of work built on good management can already be felt in 2025-2026."

(Editing by Leonardo Gottems, reporter for AgroPages)