Brazilian Farmers Increase Bartering for Ag Chemicals

Bayer AG’s Brazil unit has been relying on barter for more of its agrichemical sales, according to an article on Reuters.com, swapping its products with farmers for a portion of their crops to keep business healthy as the country emerges from the harshest recession on record.

With accessible credit lines scarce for Brazilian farmers, Bayer will use the barter operations to raise agrochemical sales to more than $300 million this year, Eduardo Roncaglia, director of structured operations, told Reuters last week.

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The volume of sales through barter operations will represent up to 25% of the unit’s total sales this year, up from a mere 1% in 2013, Roncaglia said.

“This is an important tool for producers and distributors to manage risk. And with the credit restrictions in Brazil, we think it is fundamental,” he said in giving a reason for using the strategy.

Read more at Reuters.com.

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