8 March 2024

2 minute learn

Brazilian farmer chapter requests shot by the roof in 2023, in response to a brand new survey from knowledge companies firm Serasa Experian, reflecting larger enterprise dangers for world grain merchants in one of many world’s greatest meals producers, reported Reuters.

In keeping with Serasa’s knowledge launched on Thursday, there have been 127 farmer chapter filings final 12 months, up 535% from the 12 months earlier than.

A lot of the creditor safety requests got here from soybean growers, Serasa mentioned, although cattle property house owners and occasional farmers additionally sought to remain collectors and reorganize their companies, Serasa mentioned citing satellite tv for pc sensing knowledge.

“Put into perspective, the variety of chapter filings in contrast with the tens of millions of individuals engaged in farming actions appears small,” mentioned Marcelo Pimenta, head of agribusiness at Serasa. “However the velocity at which these requests are rising quarter by quarter is worrying.”

Brazilian grain retailers have change into more and more vocal concerning the subject as a result of the rise in farmer chapter circumstances might have an effect on supply of dedicated produce and hamper merchants’ potential to finish export applications.

“A traditionally large problem in Brazil is find out how to finance agricultural manufacturing,” mentioned Paulo Sousa, CEO of US grain dealer Cargill in Brazil, talking at an occasion this week. “Currently there was a wave of chapter filings in agriculture … and brings a whole lot of concern to the sector.”

Serasa’s Pimenta cited local weather points, which have prompted crop failure in a number of areas and boosted farm administration challenges, as a driver of farmer bankruptcies.

He additionally mentioned decrease commodities costs have tightened farmer margins in a situation of still-high rates of interest in Brazil.