Risks and opportunities for the sector

The 22/23 harvest is expected to be quite challenging, with a rise in pesticide and fertilizer prices, exchange rate uncertainties (intensifying the risk of devaluation of the real), in addition to being an election year, so this exchange rate volatility could impact the formation of costs.

Productivity, commodity prices, input prices and financial costs are the biggest challenges facing agribusiness.

Good production ranges from soil preparation to monitoring cultivation with a specialized team, including choosing seeds and planting methods, which can then improve productivity. When there is good productivity, losses arising from, for example, weather conditions, volatility in input and commodity prices are minimized.

One of the biggest challenges within agribusiness is climate instability, which we are unable to influence. However, intervention in some crops with irrigation and agricultural insurance makes it possible to minimize impacts. Considering that productivity is an essential pillar in the sector, having good production is essential for a good result in any crop.

One of the factors that contributed to the significant cost of inputs, mainly fertilizers, was the excellent price of several commodities in recent years, causing farmers to increase their investment in the field, consequently increasing consumption, as well as decreasing supply. and increase in planted areas.

When we consider that many farmers finance 100% of their planting investments, the difference in the Selic (basic interest rate), which was 2% p.a. at the beginning of 2021 for a projection above 10% p.a. for 2022, makes financial management essential.

Coopercitrus, aiming at the financial health of its members, is always looking for alternatives, such as increasing our technical team, investing in precision agriculture solutions, acquiring machines and equipment to serve a greater number of members, as well as improving and training your field team to monitor each crop.

In 2021, we opened an insurance brokerage, which seeks to offer protection for crops. We offer insurance for rural and residential properties, machinery and equipment, at the best price on the market, with protection and cost reduction in mind for our members.

In the search for an adequate financial cost -- whether directly with Coopercitrus or through other partners in the financial market -- for the acquisition of machinery and equipment, it is important to use long-term lines with banks via BNDES.

Good cash management is essential, trying to capture more attractive resources. Financial expenses, when not well managed, can take away all the results, thus making financial management as important as production management.