Brazil's Agriconnection uses a new model to import and direct sell pesticides, with revenue exceeding $340 million

Recently, Agriconnection Brazil implemented a new pesticide import and direct sales model, achieving revenue of BRL 2 billion.

Flavio Mata, CEO of Agriconnection, said the company is targeting 40 percent growth by 2024. Agriconnection, it explained, provides a convenient way to enter the Brazilian market for international manufacturers who are unable to establish a sales structure in Brazil. Many suppliers are not familiar with the Brazilian model of agricultural financing, which pays by harvest season, and Agriconnection helps them overcome this obstacle. The company's suppliers are mainly from India and China.

Currently, 90% of Agriconnection's revenue comes from pesticides, with the remaining 10% coming from a specialty product line called "Essentials" that includes biological inputs. The company also plans to enter the fertilizer distribution market, which is characterized by high liquidity, high volatility, fewer participants and a higher degree of commercialization than the pesticide market.

To build its portfolio, Agriconnection also offers generic pesticides with the same active ingredients as those marketed by multinational companies in Brazil. The company has more than 2,000 customers, including farmers, distributors and cooperatives, with branches in the major agricultural states of Brazil. 

Agriconnection's funding structure consists of its own funds, supplier credits and Credit Equity Investment Funds (FIDCs), with net assets of BRL 114 million. This allows the company to offer customers payment periods of 240 to 360 days, while suppliers typically offer only 180 days.