Agricultural input distribution market contributes to the sustainable growth of the sector

The distribution of agricultural inputs is responsible for developing Brazilian agriculture by being responsible for delivering around 49% of all inputs that reach rural producers throughout the national territory. “Over these years, we have been able to observe changes in the market and we have made a lot of progress, defending a solid, productive and sustainable agribusiness and showing its importance for the future”, said the president of the Board of Directors of the National Association of Agricultural and Veterinary Input Distributors ( Andav), Oswaldo Abud, during the opening ceremony of the Andav 2022 Congress, which began this Wednesday, August 17th, at the Transamerica Expo Center, in São Paulo. The event continues until Friday, August 19th.

In his assessment, it is imperative to find ways to produce more in harmony with natural resources and create stronger communities. “Distribution will continue working to help strengthen Brazilian agribusiness. I am very proud of the role of the distributor in society”, added Abud, who commented that the Andav 2022 Congress will debate the topics that most impact the Brazilian agroeconomy, with the participation of 58 panelists, who will provide their assessments in 18 lectures and 10 panels throughout of the three-day event.

Andav's executive president, Paulo Tibúrcio, began his speech by recalling the challenges, losses and uncertainties faced in recent years. “The union of efforts has never been so present and necessary and it moves me to say that we are united in a single purpose, which is to walk together towards sustainable development for all. Agriculture has never stopped thanks to people and professionals looking to share knowledge and connections, who are truly passionate about the sector. Anyone who experiences agriculture knows that neither a year nor a harvest are the same,” he said.

The Minister of Agriculture, Livestock and Supply (MAPA), Marcos Montes, in a video recorded message, assessed that the government, producers and representatives of the input chain are important for agriculture to continue with increasingly stronger production. He cited the National Fertilizer Plan, which will lead to a path to reduce dependence on imports of this input and work to develop a plan related to agricultural pesticides. He congratulated the firm and determined performance of the agricultural input distribution sector and the partnership with Brazilian rural producers.

The Minister of the Environment (MMA), Joaquim Leite, who also delivered a message, stated that the federal government has been working towards a green economy, seeking innovative, sustainable climate and environmental solutions for people and nature. “We are moving from a simplistic agenda to a model with the private sector, to accelerate and create a new green economy, with carbon neutrality by 2050”, he highlighted.

In his last term, federal deputy Jerônimo Goergen highlighted that organizations like Andav contribute to ensuring that the legislature and the executive fulfill their role. He also commented on the importance of Embrapa, in the agricultural input distribution sector; and the importance of the sector having an adequate Environmental Control and Inspection Fee (TCFA).

The main lecture at the Andav 2022 Congress was given by the Secretary of Agricultural Policy of the Ministry of Agriculture, Livestock and Supply, Guilherme Soria Bastos Filho, who emphasized the strength of Brazilian agribusiness and the partnership between the public authorities and the private sector, in order to discuss relevant guidelines to maintain sustainable growth in the sector. “The opening of new ports in Arco Norte has given another dynamic and dimension to our sector and, today, they represent around 50% of Brazilian exports”.

According to the secretary, one of the challenges for public authorities will be maintaining control processes at checkpoints across the country, which will require more qualified people and technology packages. He also spoke about other challenges, such as poverty, inequality, hunger, climate change, pressure on natural resources, food production and loss, budget, family farming, health defense, research and innovation and digital inclusion.

Brazilian Agroeconomy Opening Panel: a multisectoral coalition

The former Minister of Agriculture and coordinator of FGV-Agro, Roberto Rodrigues, spoke about the country's importance as a global food supplier. According to him, Brazil is the absolute leader in the tropical belt. “Even in a complicated global scenario, like the current one, the country has an increasing role in ensuring food production, in addition to teaching how to produce and sell technologies and inputs. Those who don’t develop technology kill the future,” he argued.

Alexandre Mendonça de Barros, director of MB Agro, highlighted the dismantling of agricultural policies in the world's largest countries, which for 40 years were guided by the guarantee of minimum prices and stocks. “With the development of new consumption patterns in underdeveloped countries, there was a transfer to other countries as food suppliers. Thus, Brazil assumed a major role in this shift, as a major producer of soybeans, corn and cotton,” said the expert. According to Barros, the Input Distribution system was fundamental in this process, bringing barter and credit to the sector. In this order, he commented that China chose as a strategic option to produce corn, wheat and rice, while transferring soybean production to Brazil.

He pointed out some transformations: the United States started to have a growing food deficit, opening up opportunities for the Brazilian market, “while Europe and Africa set up their strategies of dependence on Eastern Europe and the Ukraine/Russia war brought a problem of continuity of this supply . “The need for new areas to guarantee supply will continue, however, volatility is the rule of the game. In other words, there is a sea of ​​opportunities in a scenario of great volatility”, he summarized.

Marcelo Prado, president of MPrado Consultoria Empresarial, also pointed out great opportunities in favor of Brazil, which must do its homework, and indicated the trends for the coming years in the input distribution segment. Among them, the convergence between the agricultural segment and livestock.

José Luiz Tejon, managing partner of Biomarketing and TCAI, highlighted the importance of marketing and sales strategy. “Today, sales and innovation agents represent the integration of the production chain, being the link, the link between traders, agribusiness and the complex as a whole”, he highlighted and emphasized the importance of advertising. “Communication is an important medium and long-term strategy, which aims, through various means, to evolve people’s perception.”

Letícia Jacintho, president of De Olho no Material Escolar, cited the movement's objectives. “We have the challenge of changing agricultural communication, as much of what was and is available in the literature does not show the opportunities that the segment provides, does not show advances in technology, innovations in production processes, or other benefits that agro promotes, such as investments in food security and sustainable production strategies”, he considered.

Afterwards, Celso Moretti, president of Embrapa, gave the lecture “Five decades of agricultural innovation in Brazil”, which focused on the saga of tropical agriculture, its advances and efficiency that changed Brazil's profile from an importer to a country that can feed the world. . “Food security is synonymous with social peace”, he stressed.

Even during the pandemic, Brazil did not suffer supply difficulties. “In the last four decades, with the help of science and technology and the private sector, we have achieved a 40% reduction in the price of the basic food basket, which in practice results in more money in people’s pockets”, stated Moretti based on 2021 data from Dieese.

According to the president of Embrapa, the current situation in Brazilian agriculture is very different from the 1970s and 1980s, when the country imported meat, milk, beans, among other products, due to the adoption of technologies. Therefore, the country must continue to invest in technology and the sustainable model of tropical agriculture. “This year we will reach a historic record for wheat production in Brazil, with growth of 19% compared to 2021. We need to show this information to the world. We have an area for agricultural expansion of 5.64 million km², that is, 9 times the size of the territory of France”, highlighted Moretti.

A realization of Andav and organized by Zest Eventos, the Andav 2022 Congress is expected to receive an audience of over 5 thousand people, including professionals, speakers, exhibitors, congressmen and visitors. Another novelty is the holding of the first in-person edition of the “Veterinary Distribution” Forum, as part of the Andav 2022 Congress, which will bring together the main themes of animal health and nutrition and will bring companies focused on products, equipment and services for the sector. In the exhibition area, there will be more than 120 national and international brands that are references in the sector, with several launches and news for the market.