DigiFarmz proposes 6 recommendations for input resellers to face crisis

Date:02-18-2025

Brazil's agricultural input sector is facing a period of uncertainty, highlighted by recent bankruptcy protection filings from major distributors. 

These filings indicate financial difficulties stemming from increasingly tight profit margins and high debt levels. 

While the growing number of bankruptcy protection requests in the sector suggests significant challenges, the current situation does not represent a structural crisis for agriculture but rather a need for adaptation and efficiency in response to new market demands.

In this context, DigiFarmz, a Brazilian agtech specializing in developing digital solutions for greater efficiency, productivity, and profitability in agribusiness operating in Latin America and the United States, suggests strategies for retailers to reduce risks and identify new opportunities. Alexandre Chequim, CEO of DigiFarmz, offers insights on the necessary transformation, emphasizing that it is time to innovate and focus on efficiency.

According to Chequim, the agricultural sector is in a critical transition phase where companies need to seek professionalization and transformation. "Today, it is not just about adopting traditional tools and processes. The market demands complete integration of management, innovation, and careful attention to customer pain points," he stated. 

He added that DigiFarmz, with its accumulated expertise in agricultural management and technology, offers a differential that goes beyond agronomic support, focusing on building value with producers and partners.

Among the solutions brought to market by the company is the DigiFarmz Linkage platform, a new release dedicated to strengthening the entire distributor-client relationship process, increasing sales volume while expanding farmer profitability. The tool uses reliable and personalized information, integrating two decades of field and greenhouse research conducted in South and North America and more than 50 parameters analyzed for managing diseases, weeds, and nematodes in major agricultural crops, along with real-time genetic and climate information. The platform adapts to each field's reality, regardless of location, facilitating informed and strategic decisions.

Six Strategies to Strengthen Resellers Operations

Based on DigiFarmz's market experience and know-how, Alexandre Chequim and his team propose six recommendations for agricultural input retailers to face the crisis:

1) Diversification of Product and Service Portfolio

Expanding product offerings to meet different producer needs is essential. Beyond basic inputs, retailers should offer insurance, agricultural credit, and precision technologies, adapting to the new reality of specific demands and increasingly specialized products. 

"Genetics and inputs have advanced significantly in terms of productivity but have become more sensitive and require fine-tuning. Understanding this is essential to deliver value-added service to the customer," Chequim noted.

2) Strategic Partnerships to Strengthen Competitiveness

Establishing partnerships with institutions offering financial and insurance solutions is a strategy that can help retailers obtain better purchasing conditions and expand their service range. 

"Partnerships are fundamental to ensure a strong market presence and enable retailers to deliver more complete solutions to producers," Chequim stated. 

He emphasized that through these alliances, it's possible to innovate and stay closer to customer needs, providing added value beyond simple input supply.

3) Efficient, Data-Based Inventory Management

In a crisis scenario, efficient inventory management becomes even more relevant. With data analysis tools, retailers can predict demands and avoid both excess and shortage of products. 

"Without technology for analysis, market demand forecasting based on the reality of customers served by the retailer becomes inefficient, and profit margins end up being compromised," explained the CEO. He highlighted this control, which helps reduce waste and optimize working capital.

4) Close Communication and Customer Relationship

Investing in communication channels, especially digital ones, is essential for strengthening customer relationships. Chequim suggested retailers adopt platforms that allow more frequent and direct interactions with producers, promoting transparency and trust. 

"Communication should align with the goal of understanding customer pain points. This is essential not just for selling but for being a strategic partner in the producer's growth," he stated.

5) Flexible Payment Terms and Credit Access

The crisis also imposes financial challenges. Offering differentiated payment terms or access to credit lines can be an effective strategy to maintain sales. It is crucial to seek differential solutions, new credit lines, and tools that mitigate risks and enable innovative insurance or credit offerings.

6) Innovation Supported by Management: People, Processes, and Tools

Chequim reinforced that innovation is the key to retailers' sustainability and competitiveness. "Agriculture needs to adopt a growth and efficiency mindset. Those who don't innovate, who don't seek more agile and personalized operations, will fall behind." 

DigiFarmz invests in the People, Processes, and Tools triad, essential for developing an efficient, results-focused operation with an integrated vision adapted to each client's reality. For Chequim, without this integration, operations tend to become unsustainable in the long term.

(Editing by Leonardo Gottems, reporter for AgroPages)