Small, but strong together: Agro-coops in Santa Catarina account for 70% of state’s agribusiness

RIO DE JANEIRO, BRAZIL – It is very difficult to imagine agribusiness in the South Region of Brazil if the sector were not led by cooperatives. These organizations have always been present in the three southern states of Paraná, Santa Catarina and Rio Grande do Sul, mainly because of the productive profile of the rural areas. Even today, when agriculture is no longer the only main activity, small plots of land predominate.

Data from IBGE show that the average size of farms in the Southern Region is slightly less than 50 hectares. Although there has been an increase of 8 hectares in recent years, the size of the land can be considered modest, especially when compared to those in the Southeast and Midwest.

As pioneers in technologies such as the adoption of transgenics and direct planting in straw, among other factors that increase productivity in many crops, small farmers are more associated with cooperatives.

In Santa Catarina, the smallest of the three states, except for mountainous and coastal regions without productive alternatives, the system is fundamental to the survival of the predominant family agriculture.

On July 3, International Cooperative Day, the 46 agricultural and livestock cooperatives in the state will present the accounting of 69.2%, of the R$ 49.8 billion gross operating income in the total of cooperatives of all branches. They are 251 registered in the Organization of Cooperatives of the State of Santa Catarina (Osesc).

This performance, driven by grain and meat exports, according to Osesc President Luiz Vicente Suzin, showed growth of 34% in 2020, reaching a volume of R$ 34.4 billion. There are more than 73,000 cooperative members and 48,200 workers.

It is also noticeable that the credit cooperative sector is also expanding thanks to agribusiness. In second place in billing, R$ 6.4 billion, are 62 cooperative financing institutions.

This is partly because they attract more rural producers to do their routine banking, and partly because they offer friendlier credit lines than the traditional financial system.

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