Syngenta's strategic shift in Brazil: closing 10 stores in the South and increasing investment in the Midwest

Recently, Syngenta revealed that it will close about 10 stores in the Brazilian states of Parana and Rio Grande do Sul. The company said the move to close Atua Agro-branded stores was to improve efficiency in key areas such as logistics. The decision was made against the backdrop of industry challenges and climate disasters in Rio Grande do Sul since the brand's inception in 2019.

The company stressed that while closing stores, it will prioritize opening new stores in Brazil's central and western states, such as Mato Grosso do Sul, Mato Grosso do Sul and Goias. This strategy aims to improve service quality and responsiveness to customers by optimizing the store network.

Syngenta believes that while some Atua Agro stores will cease operations, the rest will still be able to serve customers. The move will also strengthen the ability of the company's field technical teams to support farmers in the region, backed by efficient logistics.

In Brazil, Syngenta organizes its input distribution operations through its Synap platform. In addition to Atua Agro, the platform includes brands such as Jangada, Dipagro and Agrocerrado, totaling more than 70 stores. The company also recently announced the acquisition of Produtecnica, which is still pending approval by CADE (Committee for Economic Protection and Management, Brazil's antitrust regulator) and is expected to further enhance the company's planning and logistics capabilities.

Produtecnica is a small network of six stores operating in the Brazilian states of Tocantins, Maranhao and Piaui. Syngenta said it will continue to strengthen its partnerships with distribution networks and cooperatives and deepen its ties with these networks and cooperatives.