Producers seek funding as a way to overcome falling prices, says Cresol | Economy

Many farmers are holding back the supply of soybeans on farms, waiting for better prices for sale. But, in the meantime, the bills don’t stop and an alternative to maintaining working capital and being able to continue in the activity has been the search for funding resources.

The assessment is from the business director of Cresol Pioneira, Marcelo Ludvichack, which is one of 60 members of the Cresol credit cooperative.

During the institution’s seventh participation in Agrishow, the largest agricultural fair in Latin America in Ribeirão Preto (SP), he said that this demand for funding should boost credit operations.

“Winter crops are still missing, but the tendency is for us to close the 2023/24 harvest with a 35% increase in the volume of resources released. Last year it was R$11 billion”, said the executive to Rural Globe.

For Ludvichack, 2024 has been an atypical year due to the decline in commodity prices and producers are not accessing many resources for investment, to reduce the risk of entering into long debts. However, the cost is seen by the credit union as an opportunity at this time.

“The producer is not wanting to get rid of the grains and he does not have physical money to make all his payments. With this, we have the opportunity to operate funding to bring the liquidity he needs”, he said.

The interest rates on the funding lines are subsidized, which makes the cost of operations more affordable, varying according to the Harvest Plan lines for small, medium or large farmers. “This way, the producer can maintain his bargaining strategy until the price of grain improves,” he added.

Expansion

Considering that this movement should continue until the next season, Cresol’s preliminary projections indicate that the goal is to grow 30% in funding and 10% to 15% in investments in the 2024/25 harvest. In the case of investments, the increase would come in the wake of actions to expand customers that have been adopted.

Coming to Agrishow is part of this strategy. The cooperative’s main area of ​​activity is the South region, so the idea of ​​being at the fair helps to reinforce the brand and seek customers in the Southeast.

“That’s why our turnover for the fair is still small, close to the size of the event, but it is very strategic to participate”, he explained.

The expectation is that R$15 million will be handled by Cresol in this edition of Agrishow, double the volume recorded last year.