Tuesday, July 10, 2018

Valagro wants to grow 32% per year in Brazil with focus on field crops

Operating in the Brazilian market since 1998, the Italian company aims to not only increase the revenues coming from the horticulture, but also areas such as soybeans and corn. European company should bet on major crops, such as soya, to enlarge your recipe on Brazil to Valagro, special fertilizer Italian agriculture, plans to grow 32% per year until 2022. In a market that moves more than R $5 billion in Brazil, the company intends to expand the number of countries served, and grow in crops such as soybeans and corn. The company made last year $33 million and R be R $50 million in 2018, an increase of 51%. Until 2020, Valagro expects to grow 35 percent a year in the four key markets for the company: Brazil, India, United States and China. According to estimate of the Brazilian Association of Technology Industries in plant nutrition (Abisolo), the growth of leaf fertilizers in Brazil-where is Valagro-must reach 20 percent this year, to $5.2 billion. The segment represents 70% of the whole market of plant nutrition, which moved last year R $6.3 billion. "We want to move forward to the leadership," says the President of the company in Brazil and the Southern Cone, Victor Sonzogno. The strategy that will lead the company to grow above the segment average is based on the entry in field crops, such as soybeans, corn and cotton. Currently, sales of the company are based in horticulture, which accounts for 80 percent of business in Brazil, while the field crops account for 20%. "Until 2020, we want to achieve 60% of revenues from crops," says Sonzogno. That gamble is a global company positioning and meets a market trend to seek in cereals a pathway to expand the use of technology. "Are distinct challenges cultures. While the big productivity is the biggest concern, the quality is the focus on horticulture, "explains the Executive. Special fertilizers have focused on reducing the impact of abiotic factors such as rain, for example, in crop productivity. Second Sonzogno, the challenge is to get the producers to adopt new technologies. "Today, there are many companies harassing the farmer and he has difficulty in finding the right solution for what you need," adds Sonzogno. The company, which is in Brazil since 1998, also plans to expand the area of practice in the country, concentrated in the South today, São Paulo, Minas Gerais, Goiás, and Northeast. "We want to get to the Paraná and Mato Grosso and strengthen our presence in Goias and Rio Grande do Sul" Sonzogno. Valagro also plans to seek partnerships for distribution at Matopiba. According to him, the company does not rule out acquisitions in Brazil or globally. Last year, the company invested 10 million euros in production unit in Pirassununga (SP), which has a capacity of 50000 tonnes per year and is prepared for a possible increase in production. From the unit, Valagro exports to Chile and Uruguay. This year, Valagro arrived similar value in the construction of a unit in North Carolina, USA, which is also Canada and Mexico. The biological company should start to act in the area of biological control in Brazil and is awaiting the approval of registration in the Ministry of agriculture, which should occur next year. "The only two markets with conditions to grow above two digits in the world over the next five years are the special nutrition and biological control, which they move around 22% to 23%," says the global Director of institutional relations of Valagro Mark Rosso. The segment represents 2% of the company's global sales, while the special nutrition accounts for 50%. "Brazil and the United States should follow that trend." The company acquired in 2015 1 unit in India, from which you want to take this technology to the other units in the world. "The challenge is to make the producers accept the use of a new technology, understand the need for accession and a new legislation, which defines what is meant by special nutrition in the country," says Rosso, highlighting the importance of Brazil to the array.
GlobalFert - 10/07/2018 News Item translated automatically
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