“Target Operation” makes Lavoro achieve R$ 100 million in sales

Largest agricultural inputs distributor and redistributor in Latin America invests in the democratization of financial services for rural producers across the country

São Paulo, August 19, 2022 – Lavoro, the largest agricultural inputs distributor and redistributor in Latin America, has been investing in offering structured operations to rural producers in different regions of the country. Only in 2022, the company has already sold more than R$ 100 million in agricultural inputs, through the “Target Operation”, a Barter modality developed by the company.

In “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 Mato Grosso and Rondônia, when Lavoro was present with a stand and its commercial team”, explains Marcos Oliveira, Head of Commodities Operations at Lavoro.

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

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 agreement and its settlement, the producer can still receive a credit for agricultural inputs purchases for the next harvest.

This was Fábio Bender case, owner of Santa Fé and Gimateer farms, producer of soy and corn in Mato Grosso. Customer Lavoro, Bender carried out a soybean “Target Operation” in the amount of R$ 10 million. As a consequence, it 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 serves as a “protection” for the client from the exchange rate and the current world economic scenario.

“The negotiation was so satisfactory that I carried out a second ‘Target Operation’ for purchase 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 all

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

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

About Lavoro

Created by Pátria Investimentos – one of the largest alternative investment managers focused on Latin America – in 2017, Lavoro’s purpose is to positively transform the agricultural input distribution sector. 

A positive transformation thanks to the SOLIDITY that Lavoro has in its DNA. Thanks to the widespread PRESENCE in strategic cities and regions for agriculture. Thanks to the standard of quality, CURRENTNESS and services that our employees seek to improve every day. And thanks to the TRUST that we insist on obtaining from farmers so that they can lead and solidify their growth, which is so essential for the world. For more information, visit our official channels: website, LinkedIn, Facebook, Instagram and YouTube.