Brazil丨“Operation Target” makes Lavoro reach R$ 100 million in sales

Lavoro, the largest distributor and redistributor of agricultural inputs in Latin America, has been investing in offering structured operations to rural producers in different regions of the country. In 2022 alone, the company has already sold more than BRL 100 million in agricultural inputs , through the “Target Operation” , a Barter modality developed by the company.

In the “Target Operation”, if the commodity reaches a certain price level, the transaction is automatically “disassembled” and the gain credited to the farmer. “The main negotiations took place at major fairs and events in the sector, held in the first months of the year in the states of Mato Grosso and Rondônia, occasions in which Lavoro was present with a stand and his commercial team”, explains Marcos Oliveira , Head of Commodities Operations. from Lavoro.

For those who still don't know, Barter, in the “Target Operation” modality, is an opportunity to mitigate risks related to the volatility of commodity prices and exchange rates. Trading is carried out on the B3 Stock Exchanges, in Brazil, and Chicago and New York, in the United States, with the intermediation of a financial institution that is Lavoro's partner.

According to Oliveira, rural producers who have been adhering to this type of negotiation are being surprised by the financial returns and obtaining surprising profit margins on their crops. “In addition to being an excellent rural property management tool, the operation promotes a reduction in operating costs, which range from 4% to 10%. Depending on the variation suffered by the commodity, between the date of closing the contract and its settlement, the producer can still receive a credit for purchases of agricultural inputs for the next harvest.

This was the case of farmer Fábio Bender, owner of Santa Fé and Gimateer farms, producer of soy and corn in Mato Grosso. Customer Lavoro, Bender carried out the soybean “Target Operation” in the amount of R$ 10 million. As a result, he received R$500,000 in credit for expenses with inputs for the next crop and planting, in less than three weeks. This was only possible because the negotiation includes a hedging tool that “protects” the client from the exchange rate and the current world economic scenario.

“The negotiation was so satisfied that I carried out a second 'Target Operation' for the acquisition of agricultural inputs for the off-season corn and I have already received R$ 120 thousand in credit for a new purchase”, celebrates Bender.

barter for everyone

Although it is an apparently sophisticated transaction, Lavoro has made a commitment to its customers to simplify it and bring it closer to the reality of the field. The company offers the necessary support throughout the production cycle, from consulting for harvest planning, offering complete packages with the best brands of inputs, monitoring and monitoring of crops, to support for the commercialization of grains.

Lavoro also has its own derivatives desk, with a dedicated team that monitors all commodity movements in the main world markets.

About at Work

At the hands of Pátria Investimentos – one of the largest alternative investment managers focused on Latin America – in 2017, Lavoro was born positively to transform the agricultural input distribution sector. 

The positive transformation by the SOLIDITY  that Lavoro brings in its  DNA . Due to the capillarized PRESENCE  in cities and strategic regions for agriculture. For the standard of quality,  UPDATES  and services that our employees seek to raise every day. And for the  TRUST  that we make a point of transmitting to the farmer, so that he can lead and solidify his growth, so essential for the world.