Challenging scenario redefines agribusiness strategies

The business environment in different segments of the Brazilian agribusiness is undergoing a period of adjustments, marked by a review of strategies, pressured margins, and cautious expectations for the resumption of investments. A survey by Celeres indicates that the sectors of agricultural input distribution, agribusiness distribution, and animal nutrition face distinct dynamics, but are connected by a scenario of more restrictive credit, high default rates, and still limited consolidation movements. In the distribution of agricultural inputs, the sector is experiencing one of the most challenging phases in its recent history, after years of rapid expansion. Outdated and expensive inventories, combined with increased default, have led major companies to judicial or extrajudicial recovery processes. Even with the planted area maintaining inertial growth, the latest harvests have shown a market deconcentration, favoring regional distributors that are more selective in granting ...