Agri-giants buy their own fleet to escape the cost of freight – 28/12/2018 – Market



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Uncertainties in road freight rates have already begun to lead Brazilian agribusinesses to adopt a plan B for the sale of soybeans in 2019.

Mato Grosso Amaggi, belonging to the Minister's family of agriculture, Blairo Maggi, has closed the purchase of a fleet of 300 trucks.

"The acquisition of these vehicles meets a strategic need of the logistics structure," said the company's general manager, Judiney Carvalho.

The American multinational Cargill confirmed that made a quote of 1,000 units, but subordinated the implementation of the measure to a final position of the Federal Supreme Court on the unconstitutionality of the table.

"If this does not happen or if this decision is extended in such a way as to interfere with our Bunge, another segment giant, was confident that the board would be overturned" as soon as possible ", but confirmed that evaluates "several possibilities with regard to the freight of its products". "The company will be manifested only after the judicial decision and affirms that it will continue to guide its conduct on the respect of the laws and the decisions of justice. "

According to ADM, the situation leads to a" sharp increase "in transportation costs and" grain marketing margins, which are already very depressed. "" ADM expects the Government finds a solution and evaluates, as well as other companies, the adoption of its own fleet. "

Coamo Co-operative, one of the largest in the country, confirmed the purchase of 500 trucks in 2018. According to the press service, investments were already planned in the current fleet renewal plans, but the idea is that, if necessary, the old vehicles will continue to be used.

Up to now, the only obstacle has been the production capacity of automakers that by 2019 had already reached the limit, "commented Nelson Costa, superintendent of Ocepar, a cooperative representing about 60% of production

JBS, the largest meat company in the world, bought 360 trucks for its fleet in August

"The decision is supported by the strategy of a sustainable operation, which guarantees the production and supply of products, reducing the costs generated by the application of road freight rates, "said the company in a note.

] The transport of goods is the result of a long negotiation between government representatives and drivers of truck drivers.

The sending of the implementation of the measure allowed to end the demonstration against the costs of diesel, which interrupted the traffic on the main roads for ten days.

At the time, Cargill said in a statement that the agricultural processing and export sectors would be forced to "change their performance models". . Instead of buying the grains removed from the farms or warehouses from the inside, the note says that they "will only be forced to buy when delivered to factories. and ports ".

The scenario is continued throughout the second half of the year.

Due to uncertainty over costs, the future market entered in December with just over 30% of the forecast sales of oilseed crop in the country – reduction According to the consulting firm Safras & Mercado

for the executive director of the pro-logistical movement of Mato Grosso, Edeon Vaz Ferreira, the alternative found by the trades is not trying to replace

The objective of the major exporters, has he said, is to have a structure to "cushion crises".

"These companies are not transportation-oriented, and I see these fleets as an emergency system to use to ensure fluidity of the outgoing flow," said Vaz, a logistics consultant for entities such as the United States. Aprosoja and AMPA.

"From the beginning, he [Fux] seeks a negotiated solution, which is unachievable."

He criticized the action of Minister Luiz Fux, who recently ordered the suspension of the fine for companies that do not comply with the regulations. Gilson Baitaca, leader of the Mato Grosso Grain Carriers Movement, said that he did not believe that the adoption of his own fleets

"Anyone who ventures into this direction even risks to break his piggy bank, because of two operational costs and manpower.If this had been feasible, they would have done so for a long time, "he says.

According to him, the dialogue is the only way to solve the crisis. "Businesses have never wanted to talk, we do not try to make the business of anyone unrealistic, but simply to guarantee a value that makes ours neutral. . " [ad_2]
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