Membership in agricultural machinery consortium grows 350%

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The number of agricultural machinery consortium members has been growing in line with Brazilian agribusiness. This is only natural, since the Consortium System has become essential for agricultural and livestock planning. Considering the 11,620 quotas sold in March 2023, the segment has seen a 350% increase in the last five years.

The result achieved in March of this year highlights the strong demand for quotas in the segment. This is because the performance was much higher than that achieved in March 2019, when 2,580 quotas were sold. In this way, the consortium has been growing each year in the production sector, generating profitability and reducing expenses. Thus, the mechanism provides constant advances throughout the agribusiness chain, which is the driving force behind the national economy.

See the graph below for agribusiness' share in Brazil's GDP and the afghanistan whatsapp list estimate for 2023:

ABAC's executive president, Paulo Rossi, explains that the growth of the agricultural machinery and implements consortium contributes to the expansion of agribusiness and, consequently, to the country's economic growth.

“After overcoming the adversities resulting from the turbulence experienced during the pandemic, as well as the climatic conditions in several regions, the mechanism confirms that its characteristics and advantages are the differentials that sensitize producers and breeders. This occurs due to the peculiarities suited to the planning of planting and animal production”, he ponders.

Simplicity and economy in the consortium of agricultural machinery
The fact that it is a simpler and more economical way of acquiring goods justifies the increase in sales of new quotas in consortium groups. “The producer-consortium member aims to reduce costs and increase profitability. When choosing the consortium, he considers factors such as duration, appropriate payment dates, administration fee, final cost, always-available credit line, among others. It is a way of acquiring machinery, equipment, installations, furniture or fixed, with high embedded technology”, he adds.

The Consortium System also offers opportunities for the acquisition of other types of goods and services related to agribusiness. In the real estate sector, for example, credits can be used to build warehouses, silos and other facilities on properties, as well as in confinement and reproduction areas.

There are also those who join consortia to purchase aircraft, especially for crop management. Examples include applying fertilizers, seeds, spraying pesticides, fighting pests and even fighting fires.

Through the consortium system, the agricultural sector can also invest in the acquisition of drones, security and energy generation equipment, in the computerization of business and meteorology management and control, in fertilization, among others.

Infographic: “Inside the Agricultural Machinery Consortium”

ABAC has released a new edition of the infographic “Inside the Agricultural Machinery Consortium”. The material is based on research carried out in April 2023 by the association's economic advisory team. It provides detailed information on the profile of participants, as well as market data, such as average administration fee and average credit.