Abisolo provides high of 13% on sales

Sao Paulo-the Brazilian Association of Technology Industries in plant nutrition (Abisolo) reduced growth projection industry billing for 12% to 13% this year compared to 2016. The initial estimate was high of 23%.
Last year, the sector of special fertilizers sold R $5.8 billion, 12% high about a year before. If the prediction materializes, the revenue this year will come to R $6.5 billion. "We realized that we were very optimistic," says the Director of Institutional Relations and Communication Abisolo, Anderson''s Daughter-in-law. Despite the reduction, sales should stay within the historical average.
He explains that the reduction in the estimate is due to the retreat in commodity prices, especially of soya and maize. Soybean, for example, fell from $73.67 in November to R R $64.39 at the end of June, according to the Center for advanced studies in applied economics (Cepea). "This affects the optimism of the producer and the amount of investment in innovation," he says. Soy is the culture that most uses special fertilizers, accounting for 40 percent of the market, then the corn (13%) and vegetables (11%).
Rajan still cites as a factor the difficulty of access to credit. "The more stringent criteria and the compensation away from producers". With that, he projects an increase in demand for credit with companies. For large companies, this is a normal scenario, but can have a greater weight to smaller companies.
"As we have a short deadline for payment of the raw material-that needs to be paid within 28 days-and we grant the producer of 200 days deadline for payment, this can be a problem for smaller companies," he says. According to him, in many cases companies need to hold sales on credit restrictions.
Sales
He stresses that sales should focus between July and September. "Almost 70% of business is composed of foliar fertilizers, applied after planting and, therefore, traditionally purchased later." Organominerais fertilizers represent 13.2% of sales and soil conditioners, 9.4%.
The sector has 459 companies in the sector, of which 96 are associated with Abisolo. Of the total companies, 36.8% had revenues less than R $2,000,000, 18.1% had a result between R $2,000,000 and R $5,000,000.
Ribeiro says that the concentration that occurs in the agrochemical sector, for example, begins to arrive at the special segment. "Ten years ago we didn''t have this movement, it will still take some time, but began", stresses. "There is also an interest of investment funds in the segment".