UPL and BG.US combine their Brazilian operations to create Sinova, a new agricultural distribution company

 International agrochemical giant UPL and trading company Bunge have launched a new agricultural input distributor in Brazil, Sinova, combining the two companies' local distribution channels and resources. The new company will replace Sinagro, which was once one of the largest local agricultural supplies distributors, with a network of 68 stores in Brazil and revenue of 3 billion reais in 2022.

The transition process for the Sinova brand began three months ago with a series of adjustments aimed at streamlining operational processes and increasing flexibility in working with suppliers. This reorganization is a positive response to the crisis in the agricultural distribution industry in the past two years, reflecting the rapid adaptation and strategic foresight of the two companies to market changes.

Sinova's new CEO, Rodrigo Gutierrez, has more than 30 years of experience in the chemical pesticide market, having held key positions at well-known companies such as Monsanto and Bayer, and previously served as CEO of Adama in Brazil and the United States. It said that under the current situation of low soybean prices and weak demand for agricultural materials, the company will shift from the past expansion model to throttle and adapt to market changes.

Sinova's new strategy focuses on building closer ties with rural producers in Brazil and providing more technical support to its customers. While Gutierrez believes the market outlook for this year remains challenging, he expects Sinova to outperform previous years. In the next two years, Sinova has no plans to open new stores and will instead focus on achieving growth in its dominant crops such as soybeans, corn and cotton.

Sinova inherited from its predecessor, Sinagro, a market share of about 5% in the trading of inputs, excluding fertilizers. The new management has set a goal of doubling that share in the next four to five years, without increasing fixed costs. To achieve this goal, Sinova plans to increase efficiency through digital reforms, streamlining bureaucracy and strengthening team training.

Sinova will represent several brands of agricultural products, including the parent company UPL and BG.US, as well as Syngenta, Ubyfol, Koppert and AgBiTech. The company currently has about 300 customer service and technical staff, committed to providing professional service and support to farmers.