Purchases in agribusiness incorporate insurance to reduce uncertainties

Published 2025년 12월 26일

Tridge summary

Procurement management in agribusiness has increasingly incorporated the issue of insurance as a central part of risk reduction strategies. In a scenario marked by climatic uncertainties, price volatility, and pressure on margins, crop planning and the acquisition of inputs have started to be treated in an integrated manner with financial protection instruments, especially agricultural insurance and risk management mechanisms.

Original content

From the definition of crops, planted areas, and necessary volumes of seeds, fertilizers, and pesticides, the productivity history and climate behavior influence not only the budget but also the need for coverage against losses. The inclusion of insurance in planning allows for greater predictability of cash flow, facilitates access to rural credit, and contributes to safer decisions about early purchases, long-term contracts, and barter operations. Throughout the purchasing process, the technical and regulatory validation of inputs, the rigorous approval of suppliers, and the adoption of complete traceability strengthen operational risk management. These precautions reduce exposure to quality failures, logistical problems, and non-conformities that can compromise production and, consequently, the effectiveness of the policies contracted. Indicators such as cost per hectare, impact on productivity, level of logistical service, and percentage of purchases protected by hedge or ...
Source: Agrolink

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