INSIGHTS

Sustainable and technological agribusiness: gains in productivity and access to benefits

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The potential of Brazilian agribusiness continues to be evidenced globally, reinforcing its representation as one of the main economic pillars of the country - with growth of 24.31% in 2020 in the industry's GDP, and which may have even more expressive results by using innovation in its different processes.
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With technologies for scanning crops or livestock via satellite, for example, it is possible to carry out real-time monitoring and detect any abnormality. Thus, an attack from a herb or parasite can be dealt with quickly and targeted.

This connection between systems and devices with information exchange is part of the Internet of Things (IoT) which, according to a study commissioned by Brazilian Bank of Economic and Social Development (BNDES), can be applied on several fronts in the field such as productivity and efficiency, equipment management, asset management/animals and human productivity, with an estimated maximum economic impact potential amounting to US$ 21 billion in 2025.

João Silvério_round.pngIn João Silvério’s view, lead partner in Business Consulting at Grant Thornton Brazil, artificial intelligence makes it possible to optimize interventions in the field, whether in soil correction, irrigation or pest control by reducing costs and increasing productivity and profitability per hectare.

“It is essential to identify individual needs in order to find technological responses with more adequate innovation solutions and promote a more efficient structuring of the innovation environment in agribusiness. This can happen in the certification processes, supply chain management and conventional and autonomous agricultural equipment, planning better itineraries and defining performance indicators using advanced technologies,” he points out.

Technology as an ally of sustainability in agribusiness

Aspects related to sustainability have been highlighted in most business strategies, regardless of the segment in which they operate, and in agribusiness this relevance becomes even more evident. Using technology in this case can be a means to prove the producer's sustainability in relation to several factors such as, for example, deforestation and pollution.

Marcelo Valentini (1).pngMarcelo Valentini, Audit partner and industry leader at Grant Thornton Brazil, reinforces the possibility that “satellite images validate a producer who has kept the arable areas for years, proving that he is not deforesting.”

In this regard, two important actions can be taken when it comes to sustainability: having a sustainable process and proving it. Demonstrating that production is within the ESG criteria, which includes environmental, social and governance aspects, enables access to domestic and international benefits. “Those who make good use of technology, apply the best governance practices and take care of sustainability have access to the so-called 'green money.' It is still necessary to have good financial and audited management, reporting the numbers in accordance with market practices,” Valentini. highlights

In Brazil, currently, the producer obtains funds with interest of 6% a year (harvest plan) and whoever fulfills the sustainable requirements can have access to loans from world funds at a rate of 0.5% p.a. “Large companies already use these funds with cheaper rates that guarantee a good profit margin. But it is important to emphasize that small producers also have access to these conditions.”

Tax Benefits

Specialists claim that every innovation that improves the company's development, whether administrative or in production, guarantees tax benefits in the calculation of income tax and social contribution. "We have developed projects in order to realize the benefits of ESG in agribusiness by checking adhesion and application of these concepts, creating subsidies for the development of best practices," Silvério concludes.

Among the advantages of adopting technologies and innovations in agribusiness are the operation optimization, reduction in the cost of products, increased productivity, reduced expenses and increased logistical efficiency. Technology can make the field more sustainable and in line with ESG concepts and expand opportunities for Brazilian agribusiness.