Challenges and trends for the agribusiness market in 2023


The agro market faces some difficulties, even though it is the sector that most moves the Brazilian economy, after all, it encompasses the productive, industrial or commercial relationship involved in the agricultural chain.

This is an extremely important market for our lives, after all, it is connected to virtually everything that involves society's day-to-day life. Nobody lives without food, as well as without other products that come from the countryside, such as biofuels, wood, cotton, etc.

According to a survey carried out by the National Confederation of Trade in Goods, Services and Tourism (CNC), it was shown that cities with a strong participation of agribusiness were managing to generate formal jobs above the national average, 9.5%.

The Confederation of Agriculture and Livestock of Brazil (CNA) forecast a growth of 2.8% in the Gross Domestic Product (GDP) of agriculture for this year, supported mainly by higher production of corn and wheat in the second half.

Main difficulties in the management of Agribusiness

 As already mentioned, the agro market moves the whole country and is also very important for exports, but industries can grow even more if they pay attention to what can be improved in their management.

There are some points to be observed in this market, I have separated some of the main attention needs in companies in the agro sector.

Avoiding waste

Agribusiness depends on the sale of its inputs (sugar, grains, soybeans, wood, among many others). But there is a big problem arising from waste during the production chain: in the cultivation, harvesting, production and transport of these items.

According to a survey carried out by the Brazilian Agricultural Research Corporation (Embrapa), it was shown that about 10% of the food harvested is lost in the harvest fields.

In terms of transport, Embrapa points out that more than 50% of the food transported by trains or trucks is lost along the way.

This reality points to the need to review processes in how the harvest is carried out and how these items are loaded onto trains and trucks.

Thinking about transportation management

Still complementing the previous item, one of the great challenges for the agro market is the organization of transport for the movement of inputs.

Here in Brazil, the road segment has a lot of advantage over the others when it comes to cargo transport, which points to deficiencies in the sector's logistics infrastructure, even more so when it comes to transporting items from agriculture and livestock.

The costs of road transport logistics (freight, fuel and tolls) also directly influence the budget of companies in the agro market.

Considering this aspect, the solution would be a little more complex related to improvements in the railway sector, providing a more controlled transport, with less waste and also with lower freight and fuel costs. A single train has the capacity to make a trip carrying the same amount as more than 100 trucks, which would be highly impactful for cutting costs in the agribusiness sector.

People management in the agro market

It is still a challenge for many companies in the agro sector to manage the professionals involved in production.

At the same time that new technologies have been adopted to improve the large industries of the agro sector through machines and products with the purpose of improving reach, speed and production, even less attention is devoted to people management.

Human labor is essential in agricultural work in several areas, therefore, it is essential that companies in this segment invest more and more in improving the knowledge of their professionals, encouraging their motivation, as well as the best quality of their results.

Care with storage and inventory management

Good control is paramount in the production, storage and inventory sector.

Fields can suffer from long periods of drought, which can harm grain growth and planting.

Storage is extremely important to avoid damage and loss of inputs, companies that do not have a good structure such as tanks and silos, may have spoiled products, which leads to the initially described problem of waste.

As for stock, companies in the agro sector need to have a well-defined schedule so that they can plan to deliver batches of inputs. With adequate stock, it is possible to restock and deliver to buyers, ensuring confidence in this partnership.

But the point is that many managers find it very difficult to organize stock and take care of product storage and this directly impacts deliveries, which may influence difficulties in the growth of this sector.

Using technology in favor of the agro market

Having good management software can be an excellent way to improve processes in the agro market, helping in the organization and also in the sales process.

However, agribusiness practices have particularities, therefore, systems are needed that encompass the needs of the sector, such as better organization of production, registration of harvests, care with storage, financial management, etc.

 Promoting effective improvements in this segment

This is a fundamental area for the Brazilian economy and is part of the life of the entire population, therefore, it is always necessary to think of ways to make the agro market more and more promising and better management practices are closely linked to this.

Consultancy aimed at the agro market can be very important to propose management improvements and help entrepreneurs to rethink processes and new opportunities.

If there is the possibility of growing even more in 2023… why not explore it?

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