It is estimated that the Brazilian input market in 2022 will close at R$ 200 Billion reais, that is approximately 12% of the total agribusiness GDP, growing year by year and mainly in the segments with greater investment in research and development such as biologicals, special nutrients, biotechnology and crop protection. 

To get an idea of the size of this market, the retail food market in Brazil is estimated at R$ 400 Billion reais (ABRAS). Such market attractiveness means that several market consolidation movements are taking place in Brazil, as well as the entry of new global players. My hypothesis is that in the next 5 years, 10 distributors/cooperatives will account for 30-40% of the market, excluding direct sales. This movement has already occurred in the food retail sector and in the retail of medicines.

But more important than the strength of the inputs sector is also looking at the services sector within the agribusiness GDP, it is estimated that almost 45% of the agribusiness GDP is included in this sector, which ranges from logistics, storage to the provision of basic services such as administrative, legal, accounting and systems. The service sector within Agribusiness is gigantic and the distributor was excluded from this segment. 

The great provocation of this text is to alert distributors of inputs for this segment, which is gigantic and growing and that in recent years the Brazilian distributor has lost this market to other players. Taking back this space is fundamental for the distributor's success in this new scenario of consolidation and greater competitiveness.

Several companies from other sectors occupied this space and today we see giants in the sector ranging from specialized logistics companies, technical assistance companies, purchasing pools, precision agriculture companies in addition to the number of new companies that are emerging to capture this space. Brazil is now one of the countries with the most startups in the agricultural sector and the vast majority of them are focused on providing services to farmers.

 Some of them can be seen in the table below with companies ranging from farm management software to full entry as next generation farms. Many of them in the initial stage of life, others already incorporated to giants of Agro.

Faced with this gigantic market, what should the distributor do? What are the sectors where the distributor can be more successful? Which ones will he have a better chance of resuming his position?