Tokenization in agribusiness is a reality in several countries and in Brazil it would be no different, due to the global leadership role that the country plays in the sector. However, challenges for the sector continue and agricultural tokens can be strategic in overcoming them.
Maintaining the excellent agricultural export results achieved and pursuing bolder goals are not simple tasks in a globalized world, where deals are closed in hours and there is greater and equally qualified competition.
How can we make a difference to consolidate our position as a global agricultural leader?
One of the answers lies in technological innovations.
Blockchain is a major transformation in the way of achieving agility, security and transparency in the different ways of doing business and managing complex production chains, such as agriculture.
What are the benefits of agricultural tokens for companies in the sector?
BLOCKBR, a company that develops tokenization infrastructure, will show how the agro token adds value by contributing to the growth of Brazilian agriculture!
BRAZIL IN THE GLOBAL AGRICULTURAL MARKET
Brazilian agriculture is on a continuous upward curve as a leader in agricultural exports and there is a lot of potential to increase Brazil’s relevance in the global agromarket. Some numbers demonstrate this strength.
- The sector accounts for 70% of agribusiness revenue in 2022 and is expected to reach 73% in 2023. The national agribusiness GDP was 30% in 2021, which means that agricultural GDP is between 21% and 23% – that is, a fifth of Brazilian GDP is in the countryside.
- Brazil was already the world leader in the export of green coffee, cellulose, soybeans and sugar, it became the largest exporter of corn, surpassing the United States and should reach, in 2024, 3rd place in cotton production (today it is in 4th).
Investment in cutting-edge technology in planting and harvesting, increasing efficiency and the use of genetic seed improvement increases annual harvests and export volume.
If the agricultural scenario is very favorable, there is also strong and constant competitiveness from the USA, China and India.
Do you know the advantages of tokenizing an asset? See in our article!
WHAT ARE THE CHALLENGES OF THE BRAZILIAN AGRICULTURAL MARKET
To maintain leadership in agriculture, there are homework to do!
GREATER ACCESS TO AGRICULTURAL CREDIT
A recent study by EMBRAPA shows that only 7.6% of the country’s cultivable area is used for agriculture, a number much lower than that of the largest competing nations in agriculture.
- India: 60.5%
- United States: 18.3%
- China: 17.7%
There is great potential for growth in the agricultural market in terms of cultivation area and export volume. However, the high cost of agricultural credit impedes investment. Some movements go against this fact.
- FIAGRO, generating resources destined for the development of agribusiness;
- The fall in the Selic rate, reducing the cost of agro financing;
- The release of the Safra Plan with around R$360 billion.
USE OF NEW TECHNOLOGIES
The technology embedded in equipment and installations, drones in crops and the use of genetic techniques with seeds and soil treatment are essential to increase the quality of crops, competitiveness and international prices.
Improving the cost of agricultural financing will be the game changer, while transactional tokens are the underpinning in effective and secure management of businesses and operations.
THE ROLE OF AGRICULTURAL TOKENS IN THE GROWTH OF THE SECTOR
The tokenization of assets and processes can bring profound transformations to agricultural management. See some of them.
SPEED UP FUNDRAISING WITH LOW COST
Agricultural tokens are a more agile and assertive way of raising funds for farmers, as they allow investors from all over the world to participate.
Furthermore, asset fractionation opens the market to small investors and increases the basis for faster business capitalization
By trading futures contracts, new projects and harvests with tokens, the company exchanges expensive money (even in times of low interest rates) from financial institutions for the low cost of creating the tokenization project.
IMPROVE THE EFFICIENCY OF AGRICULTURAL LOGISTICS
The tokenization of production chains allows companies in the sector to manage the stages of such a complex ecosystem with more agile processes based on secure information through the use of smart contracts that manage the entire chain electronically.
After all, a human error or delay can cause the loss of an export contract or a drop in profits – factors that weigh on the company’s competitiveness.
INCREASE LIQUIDITY AND PROFITABILITY
Dividing assets into hundreds or thousands of shares allows for better unit values than selling the entire harvest, for example, in addition to greater liquidity. This way, it is possible to raise more capital in less time and increase the profitability of trading.
With this, the company will have more financial support to invest in equipment with embedded technology, technological resources and a more modern infrastructure.
Another positive point is the possibility of trading tokens on secondary markets. This allows you to buy and sell shares in agricultural assets more easily, which increases the brand’s exposure to a larger investor market in token offerings in the future.
Find out how tokenization is carried out in the agricultural sector with BLOCKBR’s expertise and qualifications!
HOW TO TOKENIZE AGRICULTURAL ACTIVITY?
The first step is to look for a qualified tokenization company like BLOCKBR that will offer the necessary tokenization infrastructure for the defined goals – increasing profitability in the sale of crops or logistical efficiency.
- Analyze the cost and benefit relationship;
- Deliver the most efficient token technology solution for each objective;
- Define the tokenization model with the greatest potential to attract investors;
- Focus on legally safe tokenization for investors.
TOKENIZE YOUR ASSETS WITH BLOCKBR!
Tokenization is a reality that is becoming present in all segments and business models, it is not something so innovative that it should still be seen with suspicion. Companies and individuals are currently monetizing tokens.
Recent actions by BACEN and CVM signal that tokenization is legal and the digital real will be a great divisor to increase the credibility of technology for those who want to invest in digital assets.
Offering your business token is simpler than you might think. Do you want to see the competition come out ahead?
Come and talk to BLOCKBR.
We have the best token offering strategy on the market!
INVEST AND EARN MORE WITH TOKENS ON BLOCKBR!
Buying a token is simple if you have a partnership that makes everything simple like BLOCKBR! We are an experienced asset tokenization company qualified to guide you on how to apply business tokens safely and with great results.
Open an account on our token marketplace and in minutes you will have access to a diverse universe of offers for all investor and budget profiles. Additionally, you can start investing in tokens from 50 reais!
Come to BLOCKBR, boost your results and get closer to your dreams!
BLOCKBR Digital Assets is a fintech specialized in tokenization of assets and investments that delivers infrastructure to the regulated and non-regulated market through an All-In-One platform that offers the transformation and interoperability between assets and investors.
For more information, visit: http://www.blockbr.com.br or @blockbr_ on social networks
