Syngenta offers US$1 billion for "barter" in Brazil and "cashback" in 24/25 to attract farmers
Cotton Fruit
Brazil
Market & Price Trends
Innovation & Technology
Published Mar 25, 2024
Tridge summary
Syngenta, acquired by ChemChina in 2017, is launching a 'Barter+' campaign in Brazil for the 2024/25 harvest, offering $1 billion in credit to farmers for pesticide purchases through a 'cashback' scheme. This innovative approach allows farmers to lock in commodity prices for soybeans, coffee, cotton, and corn, with the added benefit of participating in price increases. The initiative aims to enhance soybean and corn negotiations, capitalizing on market volatility, particularly in the US. Syngenta, which has seen market share growth over the past seven years, operates Nutrade, a trading company, to manage these transactions, aiming to exceed the previous year's $850 million in business volumes. In 2022, a significant volume of agricultural products was traded, with a notable portion exported to China, highlighting the benefits of Syngenta's Chinese connections and China's role as a major food importer.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.
Original content
By Roberto Samora SÃO PAULO (Reuters) - The multinational Syngenta is starting its "barter" campaign for the 2024/25 harvest in Brazil with available credit of 1 billion dollars, and is betting on the "cashback" offer to sell more pesticides to farmers, giving customers the possibility of participating in gains from rising commodity prices. In Syngenta's "Barter+", the producer will be able to lock the price of soybeans, coffee, cotton and corn in the "exchange" negotiation for the agricultural input, participating in a possible increase in the value of the commodity until the contract is closed. The instrument should give an additional boost to soybean and corn negotiations, which are slower as Brazilian producers adopt caution due to low prices. They could be attracted by the tool with an eye on the so-called "climate market" for the United States harvest, which usually generates volatility on the Chicago stock exchange, and eventual gains in prices. "The producer can exercise, ...
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