With the “Café Certo” campaign, Lavoro intends to advance in sales of agricultural inputs with Barter operations

Lavoro, the first distributor of agricultural inputs in Latin America to have its shares listed on Nasdaq, the American stock exchange, under the tickers “LVRO” and “LVROW”, has been investing in the offer of structured operations for rural producers in various regions and crops in the country. Still aiming for the 23/24 cycle, the group has just launched the “Café Certo” campaign, which intends to negotiate the crop inputs with available or future coffee beans, through Barter contracts, with special conditions for its clients. The transactions may be carried out in the Physical Barter modality, with the Target Transaction. 

With the initiative, effective until July 30, 2023, the company hopes to advance sales of agricultural inputs for this particular crop. The operations will focus on São Paulo, Minas Gerais, and Rondônia, the top coffee producing states in Brazil. In 2022 alone, Lavoro reached more than R$ 550 million in contracts with the Milho Certo campaign, which had similar mechanics. With Soja Certa, which worked along the same lines and remained in force until April 30, 2023, the company reached more than R$ 750 million.

“We want to further expand our operations in Brazil, with financial instruments that are often unknown to the producer, but that are extremely important to mitigate the risks of commodity price fluctuations and increase the profitability of our customers,” explains Marcos Oliveira, Director of Commodity Operations at Lavoro. 

Trading under the Barter model is done on the B3 Stock Exchanges, in Brazil, and in Chicago and New York, in the United States, with the intermediation of a financial institution partner of Lavoro. 

In the Target Operation, if the coffee reaches a certain price level, the transaction is automatically “dismantled” and the gain credited to the farmer. “If the price of coffee has an unexpected drop, the producer will be protected, since the beans have already been sold. Likewise, if the value goes up, we give a bonus to the farmer who can secure the necessary inputs for the next harvest. Besides being an excellent tool for managing the rural property, the operation promotes a reduction in operating costs, which is around 4% to 10%,” says Oliveira.

For Vinicius Leira, Cluster East Barter Manager, the rural producers in São Paulo and Minas Gerais need more and more financial tools that guarantee the safety of the grain. “These two states concentrate a large portion of the national production. Providing greater security to the operations of local coffee growers is essential, especially in a scenario of economic uncertainty,” he says. 

Rondônia also presents great potential for coffee cultivation. According to the National Supply Company (“Companhia Nacional de Abastecimento” – Conab), production in the region should reach 2.94 million bags in the 2023 harvest. “We created an innovative campaign, aiming to mitigate the risks of coffee price fluctuations and generate greater profitability for farmers,” says Edemir Antonio Lima, Lavoro’s Barter Manager in the North Cluster. 

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

Lavoro is the largest distributor of agricultural inputs in Brazil and the first in Latin America to be listed on Nasdaq, the American stock exchange, under the tickers “LVRO” and “LVROW”. With a complete portfolio of products and services, the company empowers farmers to adopt innovative technologies and boost productivity. Founded in 2017, Lavoro has a wide geographic presence, operating in Brazil, Colombia and Uruguay, serving about 72,000 customers, through its physical presence, in its more than 210 stores distributed in Latin America and with a team of more than 1,000 technical sales consultants, and digital, with its marketplace. Learn more about Lavoro at: https://www.lavoroagro.com/

Press Information:

Hill + Knowlton Brazil

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Gisele Gomes | + 55 11 99103-0946   

Thiago Salles | +55 11 95602-8627 [email protected]