Agro and Lula: agricultural fairs expose abyss – 04/29/2023 – Market

The main and most recent agricultural fairs held in the country exposed the abyss between agribusiness and the government of President Luiz Inácio Lula da Silva (PT).

That most agro was – and still is – closer to former president Jair Bolsonaro (PL) was already known, but the recent absences of the government in major events and the impasse involving Agrishow (International Fair of Agricultural Technology in Action ) made this relationship – or lack of it – clearer.

At the main agricultural event in the Midwest, in Rio Verde (GO), in March, when more than R$ 11 billion in agricultural machinery and implements were sold, no representative of the federal government was even on the opening stage.

Fifteen speeches were made, many of them criticizing the government and topics such as tax reform, interest rates, lack of information about what the next Crop Plan will be like and land invasions.

Lula did not even have his name mentioned, as happened at the opening of Expozebu, in Uberaba, in the Triângulo Mineiro, this Saturday (29), at the largest zebu cattle fair in the world, which expects to move R$ 350 million in business until the day 7.

Without also counting on representatives of the federal government, only the name of Minister Carlos Fávaro (Agriculture) was mentioned once, and by Gabriel Garcia Cid, president of ABCZ (Brazilian Association of Zebu Breeders), organizer of the exhibition.

Last year, Bolsonaro participated, as did former Minister Marcos Montes (Agriculture) and former Minister Tereza Cristina (both Agriculture) – she was also in 2019, the last fair before the Covid-19 pandemic.

The apex of this wear and tear, however, is underway in Ribeirão Preto, the city of São Paulo that hosts the main technology fair for agribusiness in Latin America, Agrishow.

After the wear and tear involving the non-participation of Minister Fávaro, who said he felt “uninvited” when told by the president of the fair, Francisco Matturro, that Bolsonaro would participate in the opening, this Monday (1st), the federal government threatened, this Friday (28), cancel Banco do Brasil’s sponsorship of Agrishow.

Fávaro received the suggestion to participate in the fair on Tuesday (2), when there will be an event bringing together the parliamentary front of agribusiness in Ribeirão, with the aim of avoiding discomfort with Bolsonaro’s presence at the opening.

The matter displeased members of the government, such as Minister Márcio França (Ports and Airports), who said on a social network that he “did not know” whether Banco do Brasil should continue sponsoring the event.

“To the extent that the event loses its institutional character and to the extent that there was this discourtesy towards the minister [da Agricultura, Carlos Fávaro] and with Banco do Brasil, which would accompany him at the event, sponsorship is no longer justified”, said the Minister of the Communication Secretariat, Paulo Pimenta.

With this scenario, it is very unlikely that any authority of the first echelon of the Lula government will visit the fair, according to reports heard by Sheet of exhibitors and members of the organizing associations.

Fávaro’s absence will frustrate the sector, since there was an expectation that he would announce lines of credit for agribusiness and give details of the elaboration of the 2023/24 Crop Plan, which should be announced in June.

Lula was no longer expected, but there was an expectation that he would also be represented by his deputy, Geraldo Alckmin (PSB), former governor of São Paulo and who was a regular visitor to the event.

Banco do Brasil informed, this Saturday, that it will be present at Agrishow through its commercial activities to carry out business and serve its customers. The institution states that it will take appropriate measures if, during the fair, there is any deviation from the planned business purposes.

Agrishow, on the other hand, repeated this Saturday that there was still no official statement from the bank about the withdrawal of the sponsorship. He also informed that the financial institution will continue to operate at Agrishow – the bank, one of the main promoters of agricultural credit in the country, intends to raise R$ 1.5 billion in resources until the 5th, when the agricultural fair ends.

The conflict occurs at a strong moment for agribusiness, in which producers are capitalized. The forecast is that this year’s fair will move more than the R$ 11.243 billion registered in 2022 in sales of agricultural, irrigation and storage machines (R$ 11.77 billion, in values ​​adjusted for inflation). 190 thousand visitors are expected.

INTERNET IN THE FIELD

In Uberaba, the governor of São Paulo, Tarcísio de Freitas (Republicans) spoke of two issues that in his assessment are worrying for agribusiness: the lack of connection in the field to use all the technology available through the machines, and the financial issue involving the rural properties.

According to him, indebtedness is directly related to the supply of credit and interest rates and that, as a defense mechanism, São Paulo will have “the greatest resource in history”, without mentioning values, “to guarantee credit for producers, rates interest rates and also ensure agricultural insurance”.

He also said that he has been discussing a plan with the government so that by the end of his government, in 2026, the state will not have any empty spots in terms of connectivity. “It’s no use investing millions of reais in equipment and not having connectivity.” He also said that it is necessary to train producers so that they can use the technology.

Such as Sheet showed that, in a four-year period, a program created by agribusiness companies meant that more than 12 million hectares, until then completely disconnected, now have an internet signal, but despite this, even São Paulo, the state with the most covered areas, has rural areas without connection, which prevent rural producers from having access in real time to the conditions verified by the equipment.