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The Agribusiness Department of the Federation of Industries of the State of São Paulo (Fiesp) has just conducted a quantitative survey to understand the main trends in Brazilian agribusiness. The survey “Brazilian Agribusiness Trends Monitor” interviewed rural producers located in all regions of Brazil, of all sizes, involved in the main agricultural activities, to understand their decision-making related to the acquisition of inputs and technologies, financing and rural insurance.
The study revealed that agricultural producers are committed to good management practices, are generally young and adept at using technology. When it comes to innovation, rural producers mostly define themselves as intermediate adopters of new technologies. And approximately 60% of those interviewed stated that they usually adopt new technologies only after observing the results of other producers who have used them.
Regarding investment intentions for the next harvest, producers were cautious. This indicates that investment levels similar to those of the last cycle should be maintained for the next harvest. Livestock farmers, on the other hand, showed a slightly greater willingness to invest. The highlight was machinery and implements, the variable that showed the greatest reduction in investment intentions – 45% said they will not invest or will invest less in these assets in the next cycle. The high initial cost and the cost of credit are the main challenges faced by the sector in terms of investing more.
Regarding rural credit, producers are less inclined to raise funds to finance the next harvest. The high cost of credit and the bureaucracy involved in accessing it represent significant obstacles. Regarding risk management, purchasing rural insurance is on the radar of approximately 40% of those interviewed, while 25% are still undecided. As in the case of credit, the majority highlight the high cost of the tool as the main obstacle to acquisition.
This is the first edition of the “Brazilian Agribusiness Trends Monitor”, which will be held annually with the aim of analyzing the trends in the sector. In addition to the fixed themes, with approaches on i) producer profile; ii) purchasing and marketing; iii) use of technology; iv) credit and financing; and v) rural insurance, the survey has a rotating theme each year. In this edition, the topic addressed was bioinputs, which has shown strong growth in the country.
Of those interviewed, 66% stated that they already use bioinputs in their operations. However, their large-scale adoption still faces several challenges, especially regarding economic viability and lack of technical knowledge. The high acquisition cost, difficulty in applying and storing the products were cited as obstacles to greater use of bioinputs. The survey also revealed that, in general, product quality, price and the brand they trust stand out as the three most important aspects, both when purchasing traditional inputs and when purchasing bioinputs.
It is worth noting that the results were obtained in a context marked by falling prices for the main agricultural commodities, drought in Mato Grosso and an input market still in its initial stage.
The field research was carried out by Kynetec Brasil, at the request of the Agribusiness Department of the Federation of Industries of the State of São Paulo (FIESP). The sample was carefully designed to ensure representation of the different profiles of producers and the main producing regions of the country, and included the participation of 514 farmers and ranchers.
The interviews were segmented by crop (soybean, corn, coffee, cotton and sugarcane), as well as livestock activity (beef and milk). The choice of agricultural products and their distribution in the Brazilian states was made based on their share in the Gross Value of National Agricultural Production. It is important to emphasize that the sample represents producers who are dynamic in agribusiness, that is, technology users.
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