Brazil needs to help solve world grain shortage, says agro giant CEO

Regardless of who wins the presidential election in Brazil, the country needs to sit at the table and help solve the problem of the world’s lack of grain. This is the assessment of AGCO’s CEO, Eric Hansotia, made during an event in Brasília where investments in the agribusiness giant’s factories in Brazil were announced.

Owner of brands such as Massey Ferguson, Fendt and Valtra, among others, AGCO will invest R$ 340 million in two years for the production of new models of planters and the expansion of the heavy line of tractors. It also foresees doubling the total number of Fendt dealers in the country.

“The world is short of grain, we need to produce more and inputs are expensive. Brazil needs to sit at the table and help solve the problem. It doesn’t matter who wins the election,” said Hansotia.

According to him, Brazil is the power train for the growth of agribusiness in the world. The realization, he says, came recently when visiting farms in the country to see the operation of machines in the field. He noted that producers in general are under pressure, with the challenge of producing more food using fewer inputs.

“[São] Different views from both sides [Bolsonaro e Lula], but the need to have a productive field is great. Brazilian productivity, the producer’s income, grows at a steady pace and we believe that this will continue in the coming decades.”

The group’s investments in Brazil until 2024 will be made mainly in Ibirubá (RS), where the factory is preparing to produce all new models of the Momentum planter, and in Mogi das Cruzes (SP), to expand the line of heavy tractors and create a logistics center for parts storage.

The manufacturer of agricultural machinery and precision agriculture technology estimates that it will grow by 12.6% this year, with a focus on expanding the national fleet in relation to the country’s arable area.

AGCO General Manager and Vice President Massey Fergusson in South America, Rodrigo Junqueira said that the Brazilian fleet of tractors and harvesters is small compared to other countries and that there is a “fantastic opportunity for growth”.

While Brazil has 1 tractor for every 108 hectares of area, the United States has 1 vehicle for every 33 hectares. In Germany, the ratio is even higher: 1 tractor per 12 hectares.

Regarding harvesters, while the US has one machine for every 417 hectares, in Brazil the ratio is one for every 703 hectares.

Fendt, a brand that arrived in the country three years ago, should reach 22 resellers by the end of the year – there are 11 today –, focusing on agribusiness development regions, such as Primavera do Leste, Nova Mutum and Querência, all in Mato Grosso.

The brand is already in places like Sorriso (MT), Rio Verde (GO) and Luis Eduardo Magalhães (BA). Of the 540 stores of all AGCO brands in South America, 375 are in Brazil.

X-ray | AGCO

Founded: 1990, based in Duluth, Georgia (USA)
Brands: Massey Ferguson, Valtra, Fendt and Precision Planting, among others
Revenue: $11.1 billion (2021)
Units in South America: 10, 8 in Brazil and 2 in Argentina
Dealers: 3,200, in 140 countries
Number of employees: 23 thousand
Main competitors: John Deere, New Holland, Case and Caterpillar