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By Bruno Pianca, AGCO Service Manager
It is nothing new that the bioinputs market grows much more than other product categories with each harvest. But do the prospects for 2024 remain at the same level as the last ones? What several consultancies bring is that the market should grow, and one of the factors that should influence this growth is the greater demand for sustainable production.
It is known that the world needs more food and it is clear that it also needs increasingly sustainable production. The good news is that food production and sustainability can coexist very well together and the use of bio-inputs is a concrete example of this.
The movement we have noticed in recent years is one of producers becoming increasingly curious and open to the use of organic products, which has been driving growth that surprises some experts.
According to the FarmTrak report, released by Kynetec, during the 2021/2022 harvest, there was a 67% increase in the sale of bioinputs. Two harvests ago, consultants in the area already pointed out great interest from rural producers, who were entering an experimentation phase. Two harvests later, what we see is still more than a large 'rate' of experimentation, but a much more widespread market in the sector.
A reflection of the increase is seen in the movement of the industry itself. Today, practically all large input manufacturing companies have a division dedicated to biologicals, many of which entered the game via M&A. At the end of last year, we witnessed the purchase of a bio-input manufacturer for R$2,8 billion. Something unprecedented, until then. With the market heated, news like this should become more common.
Everyone wants a share of the bioinputs market for several reasons. One of them is that it is a safe market on different fronts: economic, productive and sustainable. In the face of supply crises, driven by wars and international conflicts, national production and distribution of products, for example, reduces costs and keeps the economy strong. This also applies to OnFarm, another 'strand' of biological input production.
Another indication of increased demand is the search for professionals specialized in this area, whether researchers or sales consultants. Specialized labor is an old discussion in agribusiness, and it would be no different in this case. Those who have this workforce invest heavily in retaining talent, and those who don't, seek to train and retain them.
There is still a long way to go, as it is a relatively new market. Even our legislation is adapting to accommodate this high demand and rapid growth. But we can expect that 2024 will bring even more news and (positive) surprises within this segment. Bioinputs are and will continue to be the trend of the decade in agribusiness.
*Per Ruy Cunha (in the picture), CEO of Lavoro
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