Wheat prices remain firm in Brazil
Field activities are coming to an end, but prices remain firm
About to complete 10 years in the market, MP Agro Máquinas Agrícolas celebrates the good results of 2021, which compared to the previous year, revenue grew 65%. Located in Ibaté-SP, the manufacturer specializes in fertilizer and corrective distributors, with a complete line of implements for this functionality and even for transforming self-propelled vehicles, making them more efficient and productive in the field. Even in a period of many market fluctuations and the Covid-19 pandemic, the young company will exceed the number of 500 pieces of equipment sold this year.
“When we look at the relationship between the pandemic and increased sales, we did not find any relationship in our operations, however, one point that was certainly impacted is the sales price. This was strongly affected by rising costs and the crisis in some sectors. We believe that what has driven the growth of our market is the search for technology and productivity, and this should become increasingly accentuated”, points out the brand's commercial director, Daud Falconi.
In 2021, the Z line, for transforming self-propelled vehicles into stainless steel fertilizer distributors, was the company's best-selling solution, with producers in the North of Mato Grosso being the ones who most requested this type of equipment.
The company's forecast for next year is to grow 12% in equipment sales, compared to 2021. However, the big challenge is producing and delivering within the agreed deadline. “Manufacturers are going through a kind of “gold rush” where the gold in this case is raw materials and components in general. Furthermore, many of the inputs for the manufacture of machines and implements have increased excessively in cost, such as steel, aluminum, plastic, among others”, highlights the director.
Due to the longer deadlines for equipment delivery, the key is to plan ahead and make more strategic purchases. “This has been very consistent with our operational plan, as we were able to sell to the producer and tie up the supply with partners. In addition to this model, we have planned longer purchases with suppliers of critical items”, explains Daud. Still, he says that it has not been easy for producers to accept and adapt to long delivery times.
The numbers point to agribusiness growth in 2022, even though it is a political year, and with attention to the 2022/23 harvest due to the lack of fertilizers. With this in mind, MP Agro's strategy is to reinforce the customer-centric culture, improving the customer experience and the success of resellers. “Furthermore, for us it will be a year of aligning processes and improving our business culture, further basing it on our corporate values”, adds the Director.
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Field activities are coming to an end, but prices remain firm
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