Santander bet on small farmers

São Paulo-in search of expanding rural credit portfolio, Santander has gone beyond the traditional lines of funding and investments in crop farming. The Bank also wants to move forward with funding to small producers.
The idea is to lean supply chain: with producer on initial tip, Santanter support and the guarantee of purchase of agribusiness.
"We want to consolidate operations in larger segments, but without forgetting the family farm that still has great potential," says the Executive Superintendent of Agrobusiness Bank, Carlos Aguiar.
From January to September 2016, the Bank has accumulated almost 40 billion R$ in the industry, credit portfolio being R$ 8.492 billion of subsidies and the rest of free resources.
The rancher Kleber Junior Gozzi, for example, acquired a loan of 4 million R$ to resume the production of pigs in a family site, in West Green Gold (PR). "I grew up in a rural environment and after 25 years went to work in other areas. At that time, my father produced from 200 to 300 piglets per month. We had 51 gilts brooders. Seven years have passed and the production dropped to 40 to 50 animals per month, just for consumption or for sale in the grocery store, "says the ruralist. With the funding, he set up a business expansion plan and the goal is to provide to the 6000 5000 pigs every month. "There have been changes in my family structure, I''m going to be a father, and decided to return to the country", he comments. The large scale breeding is expected to start in the second half of 2017. In a second moment, the goal is to reach 25000 animals in nine years. In terms of area, the increment can come through a family farm, which has 240 acres. Today, he owns 24 hectares in the municipality.
"Our remuneration will revolve around 0.40 to R$ 50 R$ per kilo, and a swine of 100 pounds would be 40 to 50 of R$ R$. In the region, producers receive in the range of $25 to $28, "estimates the suinocultor.
In Piraí do Sul (PR), Liane Policarpo da Silva plays the Frei Galvão site with her husband, chicken farmer for 37 years. "We''re integrated agro-industry for years. But the aviaries were not good and we ordered a first credit to get us the 42000 chickens every 28 days. In the second half of 2016, left the financing in partnership with the BRF and we were able to increase production, "says she. The site gained 4,500,000 and Bank R$ will provide 240,000 animals per cycle of 28 days.
In both cases, the food company ensures the purchase. Differentiated prices are established by the product-to pay for the investment in infrastructure and quality of animals-who follow fully the rules of production laid down by BRF for export.
Less allowances
The Santander Executive sees a decrease in subsidized rural credit in 2017, due to crisis. "This plan Crop [2016/2017] we''ve seen the Government up to 9.5% rates. We are heading for a period of less subsidies. Various sectors will depend more and more of the private credit free rates ", emphasizes Ab, to justify the growth of investments in infrastructure of the Bank, to improve the customer service sector.
Today, the 2,200 agencies, 450 are specialized to the segment. "We have strengthened our team to get close over the field, and to better understand the needs of producers, in addition to strengthening the areas of credit and operations".