It's time to tidy up the house

The average profitability of agricultural activities lost the race to return several investments in 2015. Due to our exchange rate plunge, for example, the dollar and foreign exchange funds soared and showed an appreciation of 47%. Gold and bonds indexed to the IPCA and CDI had an average return above inflation, which reached 10,7% in 12 months (IGP-DI), according to a survey by FGV.

Meanwhile, the economic return of the agricultural activities analyzed by FGV lost the race against inflation and only one was above the savings yield: technical beef cattle farming (full cycle), which obtained the best average profitability in the field, with 8,79. XNUMX%*. At the other extreme, with the worst performance among the activities analyzed by FGV, was the supply of sugar cane, whose result was negative.

Overall, therefore, it can be said that in 2015 the average profitability of the field shrank, compared to the return of investments in the capital market. Many will say that this counterpoint is part of the comings and goings of a capitalist economy and, also, of a country like ours, where many things fall, except interest rates. It makes sense, but it doesn't eliminate another question: has this contraction in profitability already been fully felt in the countryside?

The guess is no. Firstly because FGV's numbers are average, that is, some lost more than others. Furthermore, we still have the success of agriculture in recent years, we have the intoxicating potential of the high dollar, for those who sell on the foreign market, and we have the technical inequality between producers, which mitigates the impacts for those with greater technological leverage.

Of course, the crisis with a capital “C” has not yet arrived in agribusiness. But the signs of 2015 regarding the economic results of the field leave a warning: the economy has its own laws and, with them in mind, it is necessary to prepare and map the near future. It's time to look inside the house and, if necessary, do a good tidy up. And also seek new ideas and solutions, so as not to compromise the ability to compete, inside and outside the country.

For example: optimizing production, management and market relations processes – from customers to suppliers and partners. Keep an eye on the evolution of costs, but in a way that goes far beyond classic payroll interventions. And try to deepen or review relationships in the production chain in which it operates. Basically, this is how successful adaptations happen in agriculture, when there are new realities in the business environment.

After all, experience teaches that the entrepreneurs who do best when faced with major challenges are those who worry about competitiveness and efficiency, before the eye of the hurricane arrives. The Brazilian crisis is everywhere, it is a polycrisis – from the economy to governance – and one day it will try to enter our backyard. And knowing how to act at a time like this is essential, as there will be no room for perplexity.

There is also one thing worth reinforcing: all this precaution mentioned above does not mean an intimidated attitude. Quite the opposite: it means seeking a sustainable operation and going further. It means being assertive, sticking to plans, creating alternatives, working hard, banishing pessimism and staying on the path you dream of.