AgroGalaxy (Brazil) and Bayer terminate pesticide distribution cooperation

Recently, AgroGalaxy announced that it has terminated its commercial partnership with Bayer AG for the distribution of pesticides in the field of crop protection.

It is reported that the two sides will cease operations in the Brazilian states of Parana, Sao Paulo and Minas Gerais, AgroGalaxy had a presence in these regions through distribution brands such as Agro100, Grao de Ouro Agronegocios and Grao de Ouro Comercio de Insumos.

According to a statement released by the two parties, the termination of the cooperation is due to different business strategic considerations. The statement stressed that the termination of the cooperation will not affect outstanding adjustments and commitments, and commitments to customers will be fulfilled. The two sides wish each other success in their respective development paths.

Excess inventory and declining sales have long plagued the Brazilian agricultural input market, leading to a certain amount of conflict and difficult negotiations between distributors and manufacturers. AgroGalaxy, which has been calling for a major overhaul of its business structure, recently closed some stores and cut jobs to control costs, while also receiving support from major shareholder Aqua Capital fund.

This year, the company announced it would seek partners to accelerate growth in its higher-margin seed business segment. In the field of nutrition, AgroGalaxy has launched SuperGalaxy, a new brand of plant nutrition, in collaboration with Superbac.