Search
Close this search box.
Search
Close this search box.
Search
Close this search box.

FIAGRO: how to invest in Brazil’s agribusiness with tokenization!

To say that Brazil is the breadbasket of the world has often been taken as a cliché that seemed unlikely to be confirmed. However, it is a sentence that is becoming more and more real in view of the agribusiness figures. Initiatives like FIAGRO and tokenization will help boost the industry.

There is no lack of expressive results for the agribusiness investor to be optimistic about the future:

  • In 2020, the agribusiness GDP reached R$2 trillion, representing 27% of the total;
  • Largest producer of soy beans, coffee, orange juice, and sugar;
  • Second largest producer of chicken and beef;
  • Fourth largest exporter of agricultural products in the world.

This scenario will be the trend in the coming decades with growing investments in biotechnology, machinery, and sustainability, making the sector grow as an investment option for those who want to support the development of agriculture and cattle-raising and get good yields.

Tokenization and FIAGRO are the innovative solutions that will stand out among the known and stable ways to apply in agribusiness.

BLOCKBR, a web 3.0 native company, will talk about these solutions to help you learn about this market with so much potential for growth and investment!

WHY INVEST IN BRAZIL’S AGRIBUSINESS

ACCELERATED AND CONSTANT INCREASE IN DEMAND

Food is the basis of people’s sustenance, and this is a simple premise. However, there is a trend of accelerated growth in consumption linked to the increase in the number of suppliers and the fall in prices in the domestic market.

The very investments in the sector through financial products help to modernize production and storage techniques and increase production capacity.

VALUATION OF AGRIBUSINESS COMPANIES

Brazil has been assuming a space of protagonism in the world food market and this, in return, values the roles of agribusiness companies. In addition, there is a tendency for value drops to become less frequent with the sequence of great results.

BUSINESS MODERNIZATION

The investment in agricultural technology is growing every year, mainly to face the demands of the export market with certifications. In addition, mechanization and the qualification of professionals allow agribusinesses to gain efficiency and productivity.

Learn more: types of innovative investments to invest in this year!

WHAT IS FIAGRO

FIAGRO is the Agribusiness Investment Fund, which in many ways resembles real estate funds (FII), but with a focus on agricultural and livestock activities.

It is an initiative that aims to stimulate the development of agribusiness, raising funds that will be destined to the sector’s activities. FIAGRO joins other traditional financial products currently in use as a new investment option.

  • Agribusiness letters of credit (LCA);
  • Certificate of Agribusiness Receivables (CRA);
  • Investment in shares of companies in the sector.

It is important to remember that LCA and CRA are fixed income investments and FIAGRO is a variable income investment – its shares oscillate according to supply and demand.

HOW DO THE FIAGROS WORK?

FIAGRO’s operation is similar to the real estate market; an agribusiness fund is created with the contributions of shareholders and a management specialized in prospecting opportunities in the agribusiness sector.

Among the strategies adopted by FIAGRO managements are:

  • Acquisition of receivables;
  • Development, rental, and/or purchase of rural real estate;
  • Securitization bonds in the sector;
  • Purchase of shares of agribusiness companies.

FIAGROS distributes dividends monthly and proportionally to the quota holders, according to the results of the operations and after the payment of the fund’s expenses and obligations.

HOW TOKENIZATION WORKS IN AGRIBUSINESS

The use of blockchain technology and the creation of business tokens is innovation that is becoming a reality in all markets. Tokenization is an agile, secure, and 100% available digital vehicle to offer agribusiness projects and invest.

WHAT IS TOKENIZED AGRIBUSINESS?

Tokenization in agribusiness is the creation of an encrypted digital asset that represents a good, right, project, digital or financial asset to be offered on the market through cryptoactive platforms.

An agribusiness company can tokenize its soybean stock, as is done by the Argentine company Agrotoken, or trade the rights to a crop in advance.

Another interesting possibility for the business is to offer tokens of agribusiness projects, as the case of companies that want to start new operations and can raise funds with more agility and better remunerate investors.

HOW TOKENIZATION WORKS IN AGRIBUSINESS

WHAT CAN AGRIBUSINESS TOKENIZE?

  • Credit rights (sales receivables);
  • Crop stocks;
  • Future crops;
  • Dairy, meat and other livestock production;
  • Agro-industrial projects;
  • Deactivated rural properties.

TOKENIZATION OF THE AGRICULTURAL PRODUCTION CHAIN

Not only commercially does tokenization favor agro; it is possible to convert agribusiness production chains into tokens, storing processes in the blockchain with high standards of data security, agility in communication, and in the execution of agribusiness activities.

One important initiative in this area is Embrapa’s project to use blockchain in sugarcane production.

The receivables anticipation token is a safe investment with great results. Get to know our article!

TOKENIZATION AS A PARTNER OF SUSTAINABILITY

Consumers are more attentive to the origin and sustainability of the food – use of clean, renewable energy sources, correct treatment of residues, and compliance with all labor standards.

Blockchain makes it possible to generate tokenization chains that guarantee the veracity of the data history from production and harvest to supermarket shelves.

WHAT ARE THE BENEFITS OF TOKENIZATION IN AGRIBUSINESS

As we can see, tokenizing agribusiness is an excellent alternative for the sector to capitalize in a more efficient way. Here are some benefits.

LARGER POTENTIAL INVESTOR BASE

A great differential of the tokenization of assets is the fractionation; it is possible to offer a property, a personal patrimony, and a corn crop in a quantity of tokens that work as quotas of a FIAGRO.

With low-value tokens, it is possible to broaden the potential target audience, especially small investors. This democratizes access and amplifies the visibility of the offer.

HIGHER LIQUIDITY

With a larger number of potential investors, the company is able to negotiate in a much shorter time frame than in offerings on traditional markets for large investors.

GREATER PROFITABILITY

Fractionation of tokens allows you to make a better unit price. In addition, trading is peer-to-peer, directly between the investor and the offering platform and electronically. This eliminates intermediaries, which can help make prices more attractive.

HOW TO START INVESTING IN TOKENS

Few people realize it, but buying tokens is very simple. You will only need a BLOCKBR account and a digital wallet to store your asset tokens, rights, investment products and projects and transact them.

With an account and a digital wallet, it is just a matter of getting to know the numerous projects that are available in our token marketplace.

You will find tokens for the most varied markets and conditions, including projects to invest in starting at 50 reais!

BLOCKBR Digital Assets is a web 3.0 native fintech that unites technological innovation and digital knowledge to transform physical assets into digital ones, in the process of tokenization.

The supply of tokenized assets is democratic and decentralized, which makes the way of investing safe, simpler and more efficient.

We enable, structure, issue and offer tokens on our platform and beyond. Be aware that tokens depend on feasibility and regulatory factors.

Do you want to tokenize your business or part of it? Do you have a business solution and does it make sense to issue your own token ?

share this content

You might like it too