Tighter Credit Changes Crop Protection Purchasing in Brazil

Published on: October 5, 2026

“The farmer is more informed, selective and value-oriented, assessing performance, cost per hectare and confidence in decision-making…”

Luiz Henrique Marcandalli is the head of marketing at Rainbow Agro in Brazil, with 15 years of experience in R&D and product management.

Marcandalli is an agronomist from São Paulo State University, M.Sc. from the Center for Nuclear Energy in Agriculture at the University of São Paulo, Ph.D. from Esalq/USP.


AgriBrasilis – What is the outlook for the Brazilian crop protection market in 2026?

Luiz Henrique Marcandalli – The market is undergoing an important shift in its competitive dynamics. Demand for products remains strong and the treated area continues to grow, while the expansion of post-patent products is increasing the range of available options and making the market more competitive. With farmer profitability under greater pressure, demand is increasing for efficiency, lower cost per hectare and return on investment. In this environment, companies capable of delivering high-quality products with efficacy, consistency, availability and a competitive value proposition are gaining ground.

AgriBrasilis – How has farmer purchasing behavior evolved in recent years?

Luiz Henrique Marcandalli – Farmers are more informed, selective and value-oriented, assessing performance, cost per hectare and confidence in decision-making. Greater openness to post-patent solutions creates a strategic opportunity for Rainbow to increase its relevance in the market. More than competing on price, the path forward is to strengthen the perception of efficacy, quality and attractive value, supported by field results, demand generation and close relationships with farmers and technical influencers.

AgriBrasilis – How are post-patent companies positioning themselves in a market with such low margins?

Luiz Henrique Marcandalli – Each company has its own positioning strategy. We have an advantage that few post-patent companies have: Rainbow’s industrial background and global scale, which provide rigorous quality control throughout every stage of production, along with attractive value and greater supply security. In a market with pressured margins, growth depends on strengthening the brand, expanding presence across distribution channels and turning a robust portfolio into relevant crop management solutions for farmers, while continuously introducing innovative mixtures that improve agronomic efficacy in farm management.

AgriBrasilis – Rural loan delinquency reached 8.8% and bankruptcy protection requests in agribusiness increased 21.9% in 1Q. How is this affecting the market?

Luiz Henrique Marcandalli – Rising delinquency and bankruptcy protection requests are making farmers and distribution channels more cautious. Credit has become more selective, purchases are being postponed and farmers are evaluating the return on every investment in the crop even more carefully. This environment increases the relevance of post-patent solutions, which allow farmers to maintain high-performance crop management with greater investment efficiency. At the same time, it requires companies to be more strategic in selecting and managing distribution channels, balancing growth opportunities, product availability and financial risk.

AgriBrasilis – What are the prospects for a recovery in distribution channels over the coming years?

Luiz Henrique Marcandalli – The improvement in prices of commodities such as soybeans and corn, which we have been seeing in recent weeks, improves farmer profitability, allowing farmers to invest more and maintain healthy credit conditions. This environment affects the entire sector, from distribution channels to the industry, as it increases farmers’ ability to keep their payments up to date.

AgriBrasilis – Should the expansion of Chinese companies in Brazil continue at the same pace?

Luiz Henrique Marcandalli – China remains the world’s largest producer of crop protection products, but the expansion of Chinese companies in the Brazilian market will depend on the appetite of each company. In Rainbow’s case, the answer is yes: we expect to continue expanding in the Brazilian market. We are investing in structure, portfolio, distribution channels and field presence. The next step is to turn this trajectory into greater differentiation, stronger brand recognition and farmer preference, increasing our relevance in the Brazilian market.

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