Reinventing the Business Model of Brazilian Cooperatives: Constantly Changing Environment Requires Adaptations in Long-Term Planning

However, a new scenario – characterized by increased competition due to consolidation in the market, growing competition among cooperatives, and changes in Brazil’s subsidized rural credit – will require a rethinking of the business strategy of local cooperatives. “In order to improve margins and secure future growth, cooperatives could focus on governance and costs optimization. Geographical diversification and vertical integration are also important pillars to be considered. However, they should be part of a solid go-to-market strategy and have a purpose in each business context in order to boost and not harm financial results,” according to Victor Ikeda, Senior Analyst – Grains & Oilseeds. In all these alternatives, opportunities will arise, but at the same time, some risks need to assessed.