en.Wedoany.com Reported - Luiz Alberto Roque, CEO of irrigation equipment manufacturer Bauer, stated that financing remains the main bottleneck for expanding irrigation investment. Over the past two years, the company has invested in three investment funds that can access capital markets, helping farmers repay installments through the yield increases brought by irrigation. Roque said that approximately 50% of the company's sales are already realized through such funds, with a maximum payment term of five years.
In an interview with CNN Agro News on Monday (1st), Roque emphasized that irrigation investment requires three basic pillars: water, energy infrastructure, and capital. He pointed out that farmers can access this capital and repay installments solely through the yield improvements achieved by irrigation.
Roque believes that even when farmers tend to reduce spending under profit pressure, irrigation remains one of the priority investment areas due to its return potential and risk mitigation effects. He added that although the industry is expected to decline by 15% this year compared to last year, market investment has nearly doubled over the past four years. Climate phenomena such as El Niño directly affect demand—when drought is forecast, farmers purchase irrigation systems in advance to ensure production security. Taking the southern region of Brazil as an example, the area increased irrigation investment last year due to historical climate challenges and favorable expectations for future harvests.
In addition to equipment originating from Austria, Bauer has incorporated a Brazilian tech startup founded in 2017 into its product portfolio, which specializes in irrigation water monitoring and management. Roque described that this system provides intelligent management functions to ensure the right amount of water is delivered at the right time. After being acquired by Bauer, the company operates as the group's technology center, becoming a key competitive advantage for Bauer in the Brazilian market. This solution can be used both for modernizing old machinery and for selling new equipment that already integrates the technology.
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