Lavoro Group advances in the Brazilian seed market

Lavoro, the largest agricultural inputs retailer in Latin America, surpassed the R$ 1 billion mark with the sale of seeds during the 21/22 season. They believe the result makes the company one of the largest seed distributors in Brazil, based on their assessment of third-party research. Soybean and corn cultures have the highest representation in the total volume sold during the period.

According to Jhonathan Costa, Lavoro's Seeds Director, the Company expects this segment to continue to grow, especially considering the high demand in the Brazilian market. According to a survey by Kynetec consulting, the soybean seed market in Brazil grew 40% in 2021, reaching sales of R$ 15.5 billion.

"One factor that justifies the good numbers for the sector is the advance of biotechnology. Today, the seed trade is very much linked to the use of innovation and new technologies, especially when we talk about soy production. The seeds for this type of crop are increasingly resistant to pests and diseases, which reduces the need for pesticides and other products in crops, generating savings and more sustainability for the rural producer," explains Costa.

Preparation for the next harvests

In the next cycle, Lavoro’s goal is to expand its market share. Today, the company works with the largest seed suppliers in Brazil and aims to continue to expand operations with other types of seeds, such as wheat, millet, sorghum, pasture, and other cover crops.

Lavoro also has a team of over 100 employees specialized in this sector, providing technical and commercial assistance to farmers, as well as its own quality control service. "It works like a double-check. The seeds we distribute are already selected by our suppliers, but we perform two additional laboratory tests and a test bed, which ensures a differentiated product for our customer," [Costa] says.

The company also invests in ongoing development of its sales team, through courses with market specialists on quality control and appropriate ways of planting on farms, in addition to promoting events nationwide to disseminate new technologies and bring the latest in genetics to the Brazilian rural producer.

"Since Lavoro was founded, the company continues to expand in the seed market – and our goal is to be the main player in this essential sector. Lavoro Agrocomercial, the first investment of the 'Lavoro thesis', was born from serving seed companies. Today, this segment represents approximately 17% of our revenue, based on internal management figures. We are investing in new Distribution Centers and evaluating new business opportunities, either with products of restricted distribution or private label products," concludes the executive.