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The filings have raised alarm
Brazilian farmer chapter requests shot via the roof in 2023, based on a brand new survey from information providers firm Serasa Experian, reflecting larger enterprise dangers for world grain merchants in one of many world’s largest meals producers, reported Reuters.
Based on Serasa’s information launched on Thursday, there have been 127 farmer chapter filings final yr, up 535% from the yr earlier than.
Many of the creditor safety requests got here from soybean growers, Serasa mentioned, although cattle property house owners and low farmers additionally sought to remain collectors and reorganize their companies, Serasa mentioned citing satellite tv for pc sensing information.
“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 pace at which these requests are rising quarter by quarter is worrying.”
Brazilian grain retailers have turn into more and more vocal in regards to the subject as a result of the rise in farmer chapter circumstances might have an effect on supply of dedicated produce and hamper merchants’ means to finish export applications.
“A traditionally huge problem in Brazil is the right way to finance agricultural manufacturing,” mentioned Paulo Sousa, CEO of US grain dealer Cargill in Brazil, talking at an occasion this week. “These days there was a wave of chapter filings in agriculture … and brings quite a lot of concern to the sector.”
Serasa’s Pimenta cited local weather points, which have induced 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 state of affairs of still-high rates of interest in Brazil.
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