Shuttle: For agribusiness entrepreneur, Brazil has a promising future, but needs adjustments

Brazil’s challenge for the coming years will be to produce more, using less and at an affordable cost, both for domestic and foreign consumers.

The path is one of research and innovation, since the competition for raw materials between food for humans, animals and renewable energy will increase more and more.

These challenges include the production of healthy food that respects the environment. This is how Mario Sergio Cutait, director and shareholder of MCassab, sees the country in the coming years. The company, with national capital, is preparing for its centenary.

Production will continue to grow, although with cost and price volatility, but the country will gain new markets.

The advances, however, go through both government actions and those of producers and industries.
On the producer side, the businessman claims that there is no more room for the mentality that the country does not need to do anything else because food importers will have to turn to Brazil for food.

On the side of the industries, the sectors have an obligation to arm the government, anticipating challenges and economic policy needs.

As for the new rulers, the businessman already sees some deviations in the course at the state level, such as taxation in the countryside. Logistics and health security must be among the priorities.

In the federal area, the government of Luiz Inácio Lula da Silva must guarantee legal and property security. In addition, ensuring accessibility to new markets, having a leading presence in international forums where sustainability is discussed, and maintaining fiscal balance.

The pandemic brought a more challenging scenario for multinationals. They are reviewing the concept of megafactories, installed mainly in large markets, such as China, to supply the entire world.

The international crisis in logistics makes companies review this concept and think about regional factories. They will choose countries with regulatory stability, efficient logistics, tax stability and competitive raw material cost.

Brazil needs to advance in these areas to become an attractive center. “Otherwise, we’re going to keep seeing the exact opposite happen. It hurts to see a Ford leaving the country”, he says.

Cutait bets on Brazil. MCassab, focused on animal nutrition and health, is investing R$ 170 million in Jarinu (SP). The new industrial complex occupies an area of ​​55,000 m² and doubles the group’s annual production and storage capacity.

With the new industrial unit, MCassab Nutrição e Saúde Animal wants to take a leap forward in specialties, dedicating itself even more to research and development of products with high added value and innovation. Just in laboratories there are 2,000 m² of built area.

Cutait foresees a strong evolution in the demand for proteins, a sector that sustains its business.

Consumption in Brazil, currently close to 100 kg per year per capita, still has room to grow, and new foreign markets are emerging strongly.

Some countries, such as Saudi Arabia, Russia and China, are seeking self-sufficiency, but will still remain dependent on Brazilian products.

Brazil cannot forget the Chinese market, but China cannot do without the Brazilian market either. Added to this are the doors opening in India, Indonesia, Thailand and African countries.

The MCassab director says he is making a long-term investment. Present for almost two decades in Argentina and China, the businessman is also betting a lot on the Indian market.

He sees a need for a change in the state’s stance on economic policy. In MCassab’s evaluation, the government’s role should be guiding so that industrial projects are suitable already on paper. But, on the contrary, the State maintains a limiting role.

The Ministry of Agriculture should be more guiding and less supervisory. If this were put into practice, the costs would be much lower.

The government has to adopt 20-year development policy plans, making adjustments where necessary. Where to plant, more appropriate technologies, rural insurance, demand estimates and other important points, things that China and the United States do very well.

For the entrepreneur, today there is no planning. He says, however, that it is the obligation of the private sector to provide public bodies with a vision of the future of the activity.

The government should delegate more responsibility to the private sector, especially in terms of self-control. The public sector travels at a speed of 100 km/h, and the private sector at 200 km/h. The public sector will never catch up with the private sector.

“Self-control will increase companies’ responsibility, and it is in my interest to serve my customers with safe products. I want to sleep peacefully”, he says.

Agribusiness is a sector with an export vocation. Therefore, it is necessary to open new doors for the Brazilian product. And that also goes through a government policy.

United States, France and other countries that dispute the international market, when they are at a discussion table, they have a specialist for each sector. In the Brazilian case, a technician has to master all areas.

The important thing for companies and for the country is not to depend on a single product and a single market, says the businessman.