Agricultural input distribution sector earns R$46,8 billion in 2018

In 2018, the agricultural input distribution sector recorded revenue of R$46,8 billion. This value represents a growth of 6,3% compared to the result of 2017, when the segment reached R$44 billion. The data are from National Distribution Survey, an achievement of National Association of Agricultural and Veterinary Input Distributors (ANDAV) released this Tuesday, August 13th, during the ANDAV Congress – Forum and Exhibition, which takes place at the Transamérica Expo Center, in São Paulo.

Last year, the distribution area accounted for 42,5% of revenue of R$110 billion in input sales. Of this percentage, ANDAV members were responsible for 38,6% compared to 3,90% for companies that are not associated with the entity.

According to the National Distribution Survey, which covered 21 Brazilian states and 1436 companies, the area that contributed the most to revenue obtained in 2018 was inputs for grains and cereals, with 54%. Vegetables represented 4%, with livestock and coffee each accounting for 3%.

The ANDAV study also provides an overview of the distribution market in Brazil, in which 48% of the 7,5 million rural properties are served by the distribution market. “This reinforces the power of distribution capillarity in Brazil, serving all types of properties distributed in the most diverse regions of the country”, he stated Fernando Abraão, director of the ANDAV Board of Directors.

According to the survey, the biggest difficulties faced by distributors are related to competition (50%), credit (37%), margin and price (27%) and management (23%). Among the agents causing challenges related to competition and margin and price are access policy, lack of commercial discipline and management of good practices.

For this year, most distributors expect a market with medium growth (34%), low growth (32%) and stable (27%). However, there are good prospects for opening new branches: no less than 41,2% of the distributors surveyed expressed plans to open new branches. Currently, 58% of distributors have branches. In job creation, for 2020, 4.375 new vacancies are expected.

Regarding the profile of professionals who work in this segment, 86% have undergraduate and/or postgraduate degrees, which indicates that it is a highly specialized segment. Women represent 27% of the total number of professionals working in the area, with the highest participation being in the Northeast, with 32%, highlighting that the female presence has increased not only in the administrative area, but also in the field.

Finally, ANDAV Research reveals that distributors disseminate knowledge through lectures (76%), field days (91%) and seminars (76%), reaching 450 thousand professionals in the sector last year.

Consolidated as one of the largest and most important events in the distribution of agricultural inputs in the world, the ANDAV Congress – Forum and Exhibition is expected to attract around 5.000 people and is organized by ANDAV, organized by Clarion Events Brasil.

The Forum of the IX ANDAV Congress, with the macro theme: “The Distributor 4.0”, is addressing the barriers encountered by distributors of agricultural inputs, highlighting intelligent solutions. In addition, three EDUCANDAV workshops, ANDAV's training program, are being held on the topics of sales and marketing, financing and bartering.

IX ANDAV Congress – Forum & Exhibition 

Date: August 12 to 14, 2019 

Exhibition Schedule: 12th and 13th from 9am to 20pm | Day 14 from 9am to 17pm 

Fórum: Day 12 from 9am to 17:45pm | day 13 from 9am to 18pm | day 14 from 9am to 16:30pm 

Local News: Transamerica Expo Center 

Address: Av. Dr. Mário Villas Boas Rodrigues, 387 – Santo Amaro – São Paulo-SP 

More information: www.congressoandav.com.br