Aggressive Growth Topples Supply Giant

Events such as Agrogalaxy's judicial recovery expose a valuable alert for the agricultural input distribution sector in Brazil, according to Renato Seraphim, an agribusiness strategist. The bet on aggressive growth via acquisitions, without efficient integration and with high indebtedness, ultimately undermined the company's financial sustainability, which accumulated adjusted gross debt of R$ 2.2 billion in September 2024 and total liabilities of R$ 4.67 billion, impacting key suppliers like Mosaic and Rainbow. This scenario reflects a pattern already seen in other sectors, such as supermarket retail, where global giants faced difficulties by ignoring regional diversity, opening space for solid local networks. Today, in agribusiness, regional networks like Ouro Safra, Protec, and Uniagro are gaining strength, while large consolidators face integration and governance challenges. "The Agrogalaxy case is particularly relevant to me, as I participated in the early construction of ...