Any agricultural business does two things. It converts nature into products and relationships into services. AgroGalaxy, one of the largest retailers of agricultural inputs and services in Brazil, excels at both.
“We don’t just sell seed and fertilizer,” said Marcelo Zanchi, Agronomic Solutions Director of AgroGalaxy, speaking at SAP Sapphire in São Paulo, Brazil. “Our goal is to generate extraordinary results with our customers. Their success is the same as our success when it comes to productivity, profitability and less environmental impact.”
Making it easier for farmers
Agri-retail is an indelible part of the agriculture value chain. Not just a middleman, agri-retailers function as the first line of support for farmers, offering solutions to everyday problems such as procuring quality products at affordable rates.
AgroGalaxy has developed and perfected a personalized service to help farmers make the most of their land and crops and excel despite adversity.
gettyFarmers deal with complex scenarios such as location and climate, quality of soil, biotic and genetic factors. They must deal with pests and diseases and make choices about biological and chemical dosages. They deal with the challenges of climate change which includes extreme weather and water scarcity, and they are facing the results of degenerative farming practices that have led to the erosion of land and biodiversity.
“This complexity can lead to mistakes in decision making and loss in profitability,” said Zanchi. “Providing advice on which solutions work best in each particular situation is just as important as delivering the product.”
In such intricate scenarios and complex circumstances, providing first-rate advice on the best solution requires a case-by-case approach. AgroGalaxy has developed and perfected a personalized service to help farmers make the most of their land and crops and excel despite adversity.
The cycle begins at AgroGalaxy’s Technology Center, where a specialized team of experts tests every product according to stringent criteria before it can be included in the product catalogue. This is the first step in establishing trust, as only products that meet the highest standards needed for sustainable farming make it into the reseller’s portfolio.
AgroGalaxy also has a Tech Team of 70 highly trained productivity consultants who are familiar with every product and can provide advice on when, where and how the farmer can apply it based on his individual requirements. The company has developed a set of technical protocols to manage this task efficiently, ensuring that the client gets the best package of inputs and services to meet his needs.
What makes the AgroGalaxy offering truly personalized is its digital precision tool, called Agrokea, which helps farmers simplify tasks and take ownership of their processes. The tool enables farmers to map plots of land by dimension and compare them according to production, yield and productivity. It also helps farmers track georeferenced observations, the application of pesticides and fertilizers, and areas that have been infested by pests or diseases. It also includes analytical services which help farmers interpret their data, plan harvests and the purchase of inputs suitable to a specific property. It can even perform chemical and physical analysis of diseased plants and pests.
Bringing ESG to life
Another key service introduced by AgroGalaxy is financing in the form of Agribusiness Certificates issued through the Brazilian National Bank for Economic and Social Development.
“Farmers finance their purchases with the certificates, which are paid out at the end of the harvest after they sell their produce,” Zanchi explained. This innovative credit program, called GreenGalaxy, is one way the company is bringing its ESG strategy to life.
Small and mid-sized agricultural producers have many challenges, such as irregular demand, high cost of inputs, and the volatile price of commodities. Besides subsisting on a precarious income, many rural farmers have a low level of education. When it comes to purchasing feedstuff, seeds, pesticides and fertilizers, farmers will often buy the cheaper product to cover immediate needs. They have neither time nor the inclination to read through complex instructions and weigh the pros and cons of long-term solutions.
“Once we ease their financial burden, they do not have to settle for low-quality inputs due to the lack of money. They can purchase our quality items and services which in turn will generate higher productivity and profitability,” said Zanchi.
He went on to highlight the need to educate the customers and the rural population in general, so they can make informed decisions. “It is absolutely vital to maintain a strong presence in the community. Farmers need to trust us and come to us if they have doubts or questions. Our people receive intensive training to help farmers overcome traditional practices that may not have been the most sustainable.”
According to Zanchi, the role of technology in Brazil, where agribusiness is at the core of the national economy, has never been more important. Since 2020, despites all the challenges of the pandemic, the sector grew by 24% and is now 26.6% of the GDP.
Technology is at the heart of specialized, precision agriculture that enables farmers to make the right decisions resulting in higher yields at lower costs at longer term. It enables data collection and analysis through satellite imagery, drones and sensors. By using solutions tailored to individual plots of land, farmers can recover and reuse degraded land instead of deforesting additional areas to increase production, eliminating the need for deforestation.
For running their own business, AgroGalaxy opted to implement SAP S/4HANA. “This is the right technology to support the important digital transformation we are undergoing as a company,” said Zanchi. “It provides all the relevant data we need to make sure we are on track with our environmental, social and governance commitments.”
The purpose of regenerative agriculture is to produce more food with less water, energy and chemicals while nurturing and restoring soil health and biodiversity. With their specialized approach, AgroGalaxy is enhancing the productivity and profitability of the land and the life quality of the people who farm it, fulfilling this restorative mission.
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