Fecoagro publishes note on soybean marketing

The Federation of Agricultural Cooperatives of the State of Rio Grande do Sul (FecoAgro/RS) released this Wednesday (30/05) an official note on measures it intends to adopt in view of the impacts of the truck drivers' strike on soybean sales. The guidelines were drawn up in a meeting with 24 affiliated agricultural cooperatives, in the municipality of Cruz Alta in Rio Grande do Sul.

It was agreed to standardize the payment period to seven days for new purchases. A range for cash payment limited to up to 100 bags of soy/cooperative was also established. The entity also undertakes to practice installment billing, in accordance with sales contracts.

The note says in full:

The Federation of Agricultural Cooperatives of the State of Rio Grande do Sul (FecoAgro/RS), faced with the situation generated by the truck drivers' wall movement, which caused immeasurable repercussions for the value chains in agricultural production, which are public knowledge at this moment , held a meeting this morning with 24 agricultural cooperatives, its affiliates, to discuss the impact on market dynamics and liquidity for soybeans, which, like other sectors, suffers from adjustments caused by the uncertainties and developments generated by the strike.

The repercussions still persist in the commercial dynamics of the soybean market, which, given the retraction in the oilseed's liquidity, imposes different marketing procedures and behavior on the sector, at least momentarily, until the normality seen over the last few years is resumed. Thus, the cooperatives, gathered in Cruz Alta, at the CCGL headquarters, decided on the following commercial procedures, thus adjusting to the business environment presented, for now, by the main buyers:

- Unanimously they will persist in guaranteeing the product's liquidity;
- It was agreed to standardize the payment period to seven days for new purchases;
- Established a cash payment band limited to up to 100 bags of soybeans/cooperator;
- Practice installment billing, at producer level, adjusting to sales contracts.

FecoAgro/RS and its affiliates, when promoting this decision, at a time when cooperative members demand liquidity, mainly due to this period of the year having a large concentration of commitments contracted in the production of the last harvest, they position themselves in solidarity and understand that these measures, taken collectively, they will be able to guide the behavior of their members with a transitional commercial procedure, in response to what the soy product market conditions at the moment.

Cooperatively,

Paulo Pires
President