Nutrien Soluções Agrícolas and AgroGalaxy are two of the largest agricultural input distributors in Brazil, representing active players during the current round of acquisitions, while UPL is a multinational manufacturer achieving rapid expansion. What have these companies done in Brazil in recent years? And what are their future development strategies?

Nutrien Soluções Agrícolas: Shows its value to growers by offering knowledge, services and integrated solutions, regardless of specific products

Globally, Nutrien is the world's largest supplier of agricultural inputs and services and plays an important role in helping farmers increase food production safely and responsibly, by using innovative tools and technology combined with flexible and reliable services. In Brazil, Nutrien is becoming the largest and best retail solutions platform in the agricultural industry.

André Dias, President of Nutrien in LATAM spoke to AgroPages about the company's rapid development in Brazil. In 2018, Nutrien Soluções Agrícolas started the operations in Brazil, and since then the company has fast tracked its development. In the same year, Nutrien acquired Utilfertil and Agrichem. In 2020, Nutrien acquired Agrosema, Grupo Tec Agro, Sementes Goiás and the registrations of more than 100 products from BRA Agroquímica. In 2021, Nutrien further expanded its presence in Brazil by acquiring the agricultural input retailers Terra Nova and Bio Rural. In 2022, Nutrien completed its most recent commercial expansion and reached the state of Minas Gerais through the acquisition of Marco Agro Mercantil and Casa do Adubo, thereby increasing its presence from 5 to 13 Brazilian states.

Thanks to its strategic acquisitions, Nutrien has emerged as one of the largest agricultural retailers in Latin America, by bringing customized and complete agricultural solutions to farmers through its extensive portfolio of products and services. The company will have approximately 200 commercial locations, including retail branches and Experience Centers, distributed throughout Latin America, in addition to 4,000 employees and more than 1,000 specialized professionals in the field operating throughout the region to serve more than 110,000 customers.

André Dias said that retailers must show their value to growers by offering knowledge, services, and integrated solutions, regardless of specific products. ″We believe it is essential to have a brand-agnostic approach, which is what sets us apart from other retailers in the market″ said Dias.

AgroGalaxy:Development based on consolidation, strongly bonded with farmers 

AgroGalaxy was established through the acquisition of leading regional companies, typically via investment funds. Fernando Manzeppi, executive VP of AgroGalaxy, told AgroPages that since its first acquisition in 2016, the company has completed another seven, and has closed partnership deals. Today, AgroGalaxy is a major retail platform for agricultural inputs and services, with a focus on agribusiness in Brazil. It is also engaged in the sale of agricultural inputs, seed production, the origination of grains, storing and selling grains, and providing agricultural, financial and digital services. With nationwide coverage, the company has an integrated ecosystem, delivering products and offering unique solutions to meet farmers’ needs.

Until June 30, 2022, AgroGalaxy had 145 stores; 28 silos, with a grain storage unit in the seed processing unit; three soybean plants; and 10 toolings units located in 12 Brazilian states covering some 13 million hectares and 1,000 cities, consolidating its strong capillarity strategy in the country’s most strategic agribusiness regions and its close relationships with farmers, therefore, delivering leading-edge solutions with flexibility.

As previously mentioned, the bond between agronomists and farmers is a basis for success. Manzeppi said that AgroGalaxy has a team of close to 600 agronomists, who are working in the field, helping customers and recommending the best solutions for inputs. The company offers a wide range of products, which are all tested in the agronomic technical center to guarantee safety and knowledge to customers, through the company’s technical team.

How will AgroGalaxy maintain sustainable growth? Manzeppi said, “Consolidation is very beneficial to our suppliers and customers, as we are increasingly investing in technology, innovation and operational efficiency, to provide agricultural producers with the best solutions in the field. Supply security, product quality assurance and credit are key factors to ensuring access to small and medium farmers. The most likely scenario is that the role of the distribution channel in offering required solutions to small and medium-sized farmers will be further enhanced.″

AgroGalaxy’s focus for 2022 and 2023 will be organic growth and operational efficiency gains. After its IPO in mid-2021, the company completed three acquisitions, allowing it to expand its operations to other regions. This year and at the start of 2023, AgroGalaxy is focusing on developing its new unified ERP, concluding the last mile of these companies’ integration, therefore, allowing it to grow inorganically further to the next year.

UPL:Creating a distinctive partnership to become the best partner to industry chain 

UPL is a multinational company that aims to increase its distribution in Brazil. As one of the fastest growing global off-patent crop protection product suppliers, UPL has committed  considerable resources to its distribution in the Brazilian market, including in direct marketing and its cooperation with grain trading companies to provide products and services to farmers.

Seraphim told AgroPages that UPL has been growing exponentially and is now among the top five companies in the Brazilian crop protection market, being a leader in some products and crop segments. UPL’s strategy has always been to be the best partner I  the agricultural chain. UPL believes that the Brazilian agricultural chain can only become be sustainable through the theme, ″Win Win Win.″

UPL’s market access strategy is to allow every Brazilian farmer, regardless of size, to discover its products and services quickly and safely, and this will only be possible through partners who communicate daily with farmers. ″UPL can serve customers in different ways. It has launched some initiatives to offer solutions and services through its own distributor, SINAGRO, in some regions of Cerrado. In terms of direct sales, UPL launched a joint venture with Bunge, which offers a total package of solutions from the stages of planning to commercialization. In my opinion, ORIGEO, the name of this joint venture, will be the breakthrough in this market. No company in the Brazilian market has this capacity to serve larger farmers as ORIGEO. I am confident that our focus and relationship with farmers and ranchers will be unique on this market,″ Seraphim said.

UPL understands that agriculture in Brazil is a global reference, and, therefore, it has spared no efforts to offer the new technologies developed by its R&D team to Brazilian producers. UPL’s OpenAg platform is unique in the market. ″We are inviting everybody that works win agriculture to reimagine their sustainability with us,″ Seraphim added.

With regards to the growing biological crop protection market in Latin America, UPL’s biological products aimed at regenerative agriculture are pillars of future sustainability. Seraphim said that UPL wants these bio solutions to quickly become equal to agrochemicals in its business portfolio, which will require concerted efforts from all involved researchers and institutes.

Source: AgoNews